CASE 9.7 EATATMY RESTAURANT-INVESTOR REVIEW With this case, we review the liquidity of several restaurant companies. The restaurant companies reviewed and the year-end dates are as follows 1. Yum Brands, Inc. December 25, 2010; December 26, 2009 (52 weeks each year) YUM consist of six operating segments: KFC-U.S., Pizza Hut-U.S., Taco Bell -U.S. Long John Silver's ("LJS")-U.S. andA&WAllAmerican Food Restaurants C"A&W") -U.S., YUM Restaurants International ("YRI"or "International Division")and YUM Restaurants China ("China Division")." Source: Yum! Brands, Inc. and Subsidiaries 2010 10-K 2. Panera Bread December 28, 2010; December 29, 2009 (52 weeks each year) "Panera Bread Company and its subsidiaries, referred to as "Panera Bread," "Panera," the "Company," "we," "us," and "our," is a national bakery-cafe concept with 1,453 Company-owned and franchise-operated bakery-cafe locations in 40 states, the District of Columbia, and Ontario, Canada.'" Source: Panera Bread 2010 10-K 3. Starbucks October 3, 2010; September 27, 2009 (Fiscal year 2010 included 53 weeks, while fiscal year ended 2009 included 52 weeks) Starbucks is the premier roaster and retailer of specialty coffee in the world, operating in more than 50 countries. Source: Starbucks 2010 10-K Data reviewed um Brands, Inc. Panera Bread Starbucks 2010 20092010 2009 2010 2009 All-inclusive degree of financial leverage 1.0037 .0050 1.0228 .0700 Diluted earnings per share before nonrecurring items S2.38 $2.22 $3.62 $2.78 $1.24 $0.52 Percentage of earnings 64.42% 66.20% 100.00% 100.00% 81.97% 100.00% 1.85% 20.87 $49.66 35.38 S102.11 $6863 $2594 $19.83 retained Dividend vield Price/earnines ratio Market price per share 2.26% 15.94 0 2821 0 1.39% 24.69 20.92 38.13 Disclosure not adequate to compute Required a. Comment on all data reviewed for each individual company in terms of: (i) financial leverage (ii) diluted earnings per share (iii) percentage of earnings retained (iv) dividend yield (v) price/earnings ratio