Overall, ratios and analysis of two companies indicate that McDonald’s performed better than Burger King.
In investor’s perspective, McDonald’s showed excellent stock performance in terms of dividends and capital gains. Burger King, in contrast, had a negative stock return. Therefore, it is recommended to invest only in McDonald’s.
In creditor’s perspective, McDonald’s is more
Part 1. Performance Analysis
ROE analysis
Both LGT & SKT had declining ROE
SKT had larger decrease (2.46% vs 1.11%)
LGT has larger ROE figure
LGT earns more profit per dollar of stockholder investment
Operating income margin shows contradicting results
SKT earns more operating profit per $1 of sales
SKT earns more net income per $1 of sales as well
SKT better performa
ROE analysis
Both LGT & SKT had declining ROE
SKT had larger decrease (2.46% vs 1.11%)
LGT has larger ROE figure
LGT earns more profit per dollar of stockholder investment
Operating income margin shows contradicting results
SKT earns more operating profit per $1 of sales
SKT earns more net income per $1 of sales as well
SKT better performance compared to LGT
Efficiency
LGT = much mo
Financial specialist : fundamental analysis is based on specific, proven company performance. so, the forecasting future earning is possible
Academia : the calculation of past earnings growth has nothing to do with predicting future growth
Concentrating on the prediction itself : forecasting future earning is inefficacious.
Wall Streeters
Specialists > Amateur, Individual Investor