Companies Analysis

Topics: Generally Accepted Accounting Principles, Revenue, Income Pages: 1 (255 words) Published: November 16, 2013
We want to compare the performance of McDonald and Burger King; start by looking at their income statements, which we can find out whether the companies make money or not. The following information was obtained from http://www.marketwatch.com. The revenues for McDonald from 2008-2012 were 23.52B, 22.74B, 24.07B, 27.01B, 27.57B respectively. The company had expense of 14.88B, 13.95B, 14.44B, 16.32B, 16.75B, 1.97B for the last five years. And it has gross profit of 8.64B, 8.79B, 9.64B, 10.69B, 10.82B for year of 2008-2012. As for Burger King, its revenues for 2008-2012 were 2.46B, 2.54B, 2.5B, 2.34B, 1.97B. The following figures are the cost of goods sold, 1.6B, 1.7B,1.67B, 1.54B, 1.17B. Lastly, the company has 855M, 835.6M, 828M, 791.2M, and 799.4M for its gross profit in the last five years. As we can see, McDonald surpasses Burger King in everything prospect in terms of figures. Let’s see how well they perform in terms of ratio in the past five years. McDonald’s has gross income growth of 1.77%, 9.62%, 10.89% and 1.21% from 2008-2012., while Burger King has the following gross income growth rate, -2.27%, -0.91%,-4.44%and 1.04%. From the information above, we can tell that McDonald operated way better than Burger King did during the past five years, because of its increment on gross income and Burger King had negative on its gross income for three out of the 4 years. But in terms of Gross Profit Margin, Burger King had a slightest lead over McDonald. Burger King has a 40.66% Gross Profit Margin, while McDonald was at 39.24%.
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