Please compare two U.S. companies, McDonalds (MCD) and Wendys (WEN), which are in the fast-food industry.

(1) an analysis of the financial position of each firm by using the twelve criteria discussed in class;

(2) an analysis of the expected return and risk of each firm (i.e., do the same analysis of each company that you did in problem 1)

3. On the basis of your analysis, which company would you invest in? Why?

• Revenue growth
• Gross margin percentage
• Net profit margin
• Cash divided by shares outstanding
• EPS growth
• Cash divided by debt
• Return on assets (roa)
• Return on equity (ROE)
• Price to book ratio
• Price to sale
• PEG ratio
• Return on equity compared to cost of equity