mcdonalds information

wendys information

a. Does each company have the ability to pay current liabilities? Your answer should explain what the results of your calculations for working capital, current ratio and acid test ratio mean for each company. b. Does each company have the ability to pay long term debt? Your answer should explain what the results of your calculations for debt ratio and times interest earned mean for each company. c. What is your opinion of each company's profitability? Your answer should explain what the results of your calculations for profit margin, return on assets and return on equity mean for each company. d. What is your opinion of the overall financial health of each company? Which company's stock would you prefer to buy? Support your answer with details from your responses to questions a - d and by explaining what the results of the Price-Earnings ratio means for each company. 2019 $ 898,5 2.224.2 50.2 385.0 35579 1.270.3 2.677.4 2584.0 6531 7 13.261.2 39,050.9 (14.890.9) 24.160.0 $ 47.510.8 Consolidated Balance Sheet In milions, except per share data December 31, 2020 ASSETS Current assets Cash and equivalents $ 3,449.1 Accounts and notes receivable 2.110.3 Inventories, at cost, not in excess of market 51.1 Prepaid expenses and other current assets 6327 Total current assets 6.243 2 Other assets Investments in and advances to affiliates 1,2972 Goodwill 2,773.1 Miscellaneous 3,527.4 Total other assets 7.5977 Lease right-of-use asset, net 13,827.7 Property and equipment Property and equipment, at cost 41,476.5 Accumulated depreciation and amortization (16,5183) Net property and equipment 24,9502 Total assets $ 52,6268 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities Accounts payable $ 7413 Lease liability 701.5 Income taxes 741.1 Other taxes 227.0 Accrued interest 388.4 Accrued payroll and other abilities 1.138.3 Current matunities of long-term debt 2.243.6 Total current liabilities 6.1812 Long-term debt 35,196.8 Long-term lease liability 13,321.3 Long-term income taxes 1,970.7 Deferred revenues - initial franchise fees 702.0 Other long-term liabilities 1,054.1 Deferred income taxes 2,025.6 Shareholders' equity (deficit) Preferred stock, no par value: authorized - 165.0 million shares, issued - none Common stock, 5.01 par value authorized - 3.5 billion shares; issued - 1,660.6 million shares 16.6 Additional paid in capital 7,903.6 Retained earings 53,908.1 Accumulated other comprehensive income (loss) (2.586.8) Common stock in treasury at cost: 915.2 and 914.3 milion shares 67,066.4) Total shareholders' equity (deficit) (7,324.9) Total liabilities and shareholders' equity (deficit $52,626.8 See Notes to consisted financial statements $ 988.2 621.0 331.7 247.5 337,a 1,035.7 59.1 3.6210 34.116.1 12.757.8 2.265.9 660.6 979.6 1,318.1 16.6 7.653.9 52.930.5 (2.482.7) (66.328.6) (8210.3) $ 475108 40 McDonald's Corporation 2030 Amp Table of Content THE WENDY'S COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands Except Par Value) January 3. 2021 December 29. 2019 ASSETS Current assets: Cash and cash equivalents Restricted cash Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Advertising funds restricted assets Total current assets Properties Finance lease assets Operating lease assets Goodwill Other intangible assets Investments Net investment in sales-type and direct financing leases Other assets Total assets 306,989S 33.973 109,891 4.732 89,732 142.306 687,623 915,889 206,153 821.480 751,049 1.224.960 44,574 268 221 120,057 5,040,006 300,195 34,539 117.461 3.891 15,585 82.376 554,047 977,000 200.144 857,199 755,911 1.247,212 45.949 256,606 100,461 4,994,529 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt Current portion of finance lease liabilities Current portion of operating lease liabilities Accounts payable Accrued expenses and other current liabilities Advertising funds restricted liabilities Total current liabilities Long-term debt Long-term finance lease liabilities Long-term operating lease liabilities Deferred income taxes Deferred franchise fees Other liabilities Total liabilities Commitments and contingencies Stockholders' equity Common stock, 30.10 par value: 1.500.000 shares authorized 470,424 shares issued: 224.268 and 224,889 shares outstanding, respectively Additional paid-in capital Retained earnings Common stock held in treasury, at cost: 246,156 and 245,535 shares, respectively Accumulated other comprehensive loss Total stockholders' equity Total liabilities and stockholders' equity 28.962 12.105 45.346 31,063 155,321 140.511 413,308 2,218,163 506,076 865,325 280,755 89,094 117,689 4.490.410 22,750 11.005 43.775 22,701 165.272 84.195 349.698 2,257,561 480.847 897,737 270,759 91,790 129.778 4.478.170 47,042 2,899.276 238,674 (2,585,755) (49.641) 549 596 5,040,006 47,042 2,874,001 185.725 (2.536,581) (53,828) 516,359 4,994,529 Table of Contents THE WENDY'S COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands Except Per Share Amounts) January 3. 2021 Year Ended December 29, 2019 December 30, 2018 722.764 $ 444.749 232,648 333.664 1.733.825 707,485 $ 428,999 233,065 339,453 1.709.002 651.577 409,043 203.297 326,019 1.589,936 Revenues Sales Franchise royalty revenue and fees Franchise rental income Advertising funds revenue Costs and expenses Cost of sales Franchise support and other costs Franchise rental expense Advertising funds expense General and administrative Depreciation and amortization System optimization gains, net Reorganization and realignment costs Impairment of long-lived assets Other operating income.net Operating profit Interest expense, net Loss on carly extinguishment of debt Investment (loss) income, net Other income, net Income before income taxes Provision for income taxes Net income 614,907 26,464 125,613 345,360 206,876 132.775 (3.148) 16.030 1,037 (8,397) 1.464,517 269,308 (117.737) 597.530 43.686 123.929 338,116 200,206 131,693 (1.283) 16,965 6,999 (11.418) 1,446,423 262,579 (115.971) (8,496) 25,598 7,771 171.481 (34.541) 136,9-40 548,588 25,203 91,104 321.866 217,489 128,879 (463) 9,068 4,697 (6,387) 1,340,044 249.892 (119,618) (11.475) 450,736 5,381 574,916 (114,801) 460,115 (225) 1.449 152,795 (34.963) 117,832 s Net income per share: Basic Diluted $ .53s S2 .60 .58 1.93 1.88 a. Does each company have the ability to pay current liabilities? Your answer should explain what the results of your calculations for working capital, current ratio and acid test ratio mean for each company. b. Does each company have the ability to pay long term debt? Your answer should explain what the results of your calculations for debt ratio and times interest earned mean for each company. c. What is your opinion of each company's profitability? Your answer should explain what the results of your calculations for profit margin, return on assets and return on equity mean for each company. d. What is your opinion of the overall financial health of each company? Which company's stock would you prefer to buy? Support your answer with details from your responses to questions a - d and by explaining what the results of the Price-Earnings ratio means for each company. 2019 $ 898,5 2.224.2 50.2 385.0 35579 1.270.3 2.677.4 2584.0 6531 7 13.261.2 39,050.9 (14.890.9) 24.160.0 $ 47.510.8 Consolidated Balance Sheet In milions, except per share data December 31, 2020 ASSETS Current assets Cash and equivalents $ 3,449.1 Accounts and notes receivable 2.110.3 Inventories, at cost, not in excess of market 51.1 Prepaid expenses and other current assets 6327 Total current assets 6.243 2 Other assets Investments in and advances to affiliates 1,2972 Goodwill 2,773.1 Miscellaneous 3,527.4 Total other assets 7.5977 Lease right-of-use asset, net 13,827.7 Property and equipment Property and equipment, at cost 41,476.5 Accumulated depreciation and amortization (16,5183) Net property and equipment 24,9502 Total assets $ 52,6268 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities Accounts payable $ 7413 Lease liability 701.5 Income taxes 741.1 Other taxes 227.0 Accrued interest 388.4 Accrued payroll and other abilities 1.138.3 Current matunities of long-term debt 2.243.6 Total current liabilities 6.1812 Long-term debt 35,196.8 Long-term lease liability 13,321.3 Long-term income taxes 1,970.7 Deferred revenues - initial franchise fees 702.0 Other long-term liabilities 1,054.1 Deferred income taxes 2,025.6 Shareholders' equity (deficit) Preferred stock, no par value: authorized - 165.0 million shares, issued - none Common stock, 5.01 par value authorized - 3.5 billion shares; issued - 1,660.6 million shares 16.6 Additional paid in capital 7,903.6 Retained earings 53,908.1 Accumulated other comprehensive income (loss) (2.586.8) Common stock in treasury at cost: 915.2 and 914.3 milion shares 67,066.4) Total shareholders' equity (deficit) (7,324.9) Total liabilities and shareholders' equity (deficit $52,626.8 See Notes to consisted financial statements $ 988.2 621.0 331.7 247.5 337,a 1,035.7 59.1 3.6210 34.116.1 12.757.8 2.265.9 660.6 979.6 1,318.1 16.6 7.653.9 52.930.5 (2.482.7) (66.328.6) (8210.3) $ 475108 40 McDonald's Corporation 2030 Amp Table of Content THE WENDY'S COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands Except Par Value) January 3. 2021 December 29. 2019 ASSETS Current assets: Cash and cash equivalents Restricted cash Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Advertising funds restricted assets Total current assets Properties Finance lease assets Operating lease assets Goodwill Other intangible assets Investments Net investment in sales-type and direct financing leases Other assets Total assets 306,989S 33.973 109,891 4.732 89,732 142.306 687,623 915,889 206,153 821.480 751,049 1.224.960 44,574 268 221 120,057 5,040,006 300,195 34,539 117.461 3.891 15,585 82.376 554,047 977,000 200.144 857,199 755,911 1.247,212 45.949 256,606 100,461 4,994,529 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt Current portion of finance lease liabilities Current portion of operating lease liabilities Accounts payable Accrued expenses and other current liabilities Advertising funds restricted liabilities Total current liabilities Long-term debt Long-term finance lease liabilities Long-term operating lease liabilities Deferred income taxes Deferred franchise fees Other liabilities Total liabilities Commitments and contingencies Stockholders' equity Common stock, 30.10 par value: 1.500.000 shares authorized 470,424 shares issued: 224.268 and 224,889 shares outstanding, respectively Additional paid-in capital Retained earnings Common stock held in treasury, at cost: 246,156 and 245,535 shares, respectively Accumulated other comprehensive loss Total stockholders' equity Total liabilities and stockholders' equity 28.962 12.105 45.346 31,063 155,321 140.511 413,308 2,218,163 506,076 865,325 280,755 89,094 117,689 4.490.410 22,750 11.005 43.775 22,701 165.272 84.195 349.698 2,257,561 480.847 897,737 270,759 91,790 129.778 4.478.170 47,042 2,899.276 238,674 (2,585,755) (49.641) 549 596 5,040,006 47,042 2,874,001 185.725 (2.536,581) (53,828) 516,359 4,994,529 Table of Contents THE WENDY'S COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands Except Per Share Amounts) January 3. 2021 Year Ended December 29, 2019 December 30, 2018 722.764 $ 444.749 232,648 333.664 1.733.825 707,485 $ 428,999 233,065 339,453 1.709.002 651.577 409,043 203.297 326,019 1.589,936 Revenues Sales Franchise royalty revenue and fees Franchise rental income Advertising funds revenue Costs and expenses Cost of sales Franchise support and other costs Franchise rental expense Advertising funds expense General and administrative Depreciation and amortization System optimization gains, net Reorganization and realignment costs Impairment of long-lived assets Other operating income.net Operating profit Interest expense, net Loss on carly extinguishment of debt Investment (loss) income, net Other income, net Income before income taxes Provision for income taxes Net income 614,907 26,464 125,613 345,360 206,876 132.775 (3.148) 16.030 1,037 (8,397) 1.464,517 269,308 (117.737) 597.530 43.686 123.929 338,116 200,206 131,693 (1.283) 16,965 6,999 (11.418) 1,446,423 262,579 (115.971) (8,496) 25,598 7,771 171.481 (34.541) 136,9-40 548,588 25,203 91,104 321.866 217,489 128,879 (463) 9,068 4,697 (6,387) 1,340,044 249.892 (119,618) (11.475) 450,736 5,381 574,916 (114,801) 460,115 (225) 1.449 152,795 (34.963) 117,832 s Net income per share: Basic Diluted $ .53s S2 .60 .58 1.93 1.88