Please answer question a and b.
CHAPTER 9. For the Investor 391 With this case, we review the profitability of several restaurant companies. The restaurant CASE 9-7 EAT AT MY RESTAURANT-INVESTOR VIEW 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 consists of six operating segments: KFC U.S., Pizza Hut-U.S., Taco Bell-U... Long John Silver's "LJS".-U.S., and A&W All American Food Restaurants ("A&W")U.S., YUM Restaurants International ("YRI" or "International Division") and YUM Restaurants China ("China Division")." 10-K 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 it subsidiaries, referred to as "Panera Bread," "Panera," the "Company," "we," "us," and "our," is a national bakery-caf concept with 1,453 company-owned and franchise-operated bakery-caf locations in 40 states, the District of Columbia, and Ontario, Canada." 10-K 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." 10-K Source: Starbucks Corporation 2010'10-K Data reviewed Yum Brands, Inc. Pancra Bread Starbucks 2010 2010 2009 2010 2009 All-inclusive degree of financial leverage 100.37 100.50 102.28 107.00 Diluted earnings per share before nonrecurring items $ 2.38 $ 2.22 $ 3.62 $ 2.78 $ 1.24 $ 0.52 Percentage of earnings retained 64.42% 66.20% 100.00% 100.00% 81.97% 100.00% 1.85% Dividend yield 2.26% 0 0 0 1.39% Price/earnings ratio 20.87 15.94 28.21 24.69 20.92 38.13 $ 49.66 $ 35.38 $ 102.11 68.63 S 25.94 $ Market price per share 19.83 *Disclosure not adequate to compute Required a. Comment on the data reviewed for each individual company for 2010 and 2009. b. Based on the above, which firm would you select? 2009 GA CHAPTER 9. For the Investor 391 With this case, we review the profitability of several restaurant companies. The restaurant CASE 9-7 EAT AT MY RESTAURANT-INVESTOR VIEW 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 consists of six operating segments: KFC U.S., Pizza Hut-U.S., Taco Bell-U... Long John Silver's "LJS".-U.S., and A&W All American Food Restaurants ("A&W")U.S., YUM Restaurants International ("YRI" or "International Division") and YUM Restaurants China ("China Division")." 10-K 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 it subsidiaries, referred to as "Panera Bread," "Panera," the "Company," "we," "us," and "our," is a national bakery-caf concept with 1,453 company-owned and franchise-operated bakery-caf locations in 40 states, the District of Columbia, and Ontario, Canada." 10-K 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." 10-K Source: Starbucks Corporation 2010'10-K Data reviewed Yum Brands, Inc. Pancra Bread Starbucks 2010 2010 2009 2010 2009 All-inclusive degree of financial leverage 100.37 100.50 102.28 107.00 Diluted earnings per share before nonrecurring items $ 2.38 $ 2.22 $ 3.62 $ 2.78 $ 1.24 $ 0.52 Percentage of earnings retained 64.42% 66.20% 100.00% 100.00% 81.97% 100.00% 1.85% Dividend yield 2.26% 0 0 0 1.39% Price/earnings ratio 20.87 15.94 28.21 24.69 20.92 38.13 $ 49.66 $ 35.38 $ 102.11 68.63 S 25.94 $ Market price per share 19.83 *Disclosure not adequate to compute Required a. Comment on the data reviewed for each individual company for 2010 and 2009. b. Based on the above, which firm would you select? 2009 GA
