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Problem 12-20 (Essay) Wendys International, Inc, and McDonalds Corporation, two leading fast-food chains, are classified in SIC code 5812-Eating Places. Recent results for each company, along with industry averages, follow. Wendys McDonalds Industry Average Return on assets Return on common stockholders-equity Net income as a percentage of sales 7.7% 11.9 % 7.4% 9.9 % 17.7 % 12.7 % 0.98 6.4 % 14.0 % 2.9 % 0.67 1.04 How do Wendys and McDonalds compare to the industry averages? Based on your analysis, would you consider these two companies to be industry leaders? Why or why not? LINK 10 VIDEO LINK TO VIDEO LINK TO TEXT 10 TEXT

The industry data reported here represent Dun and Bradstreets industry median. Dun and Bradstreet also reports industry norms for the upper quartile (top 25%) of companies in the industry. In the top quartile, return on assets was 15.1%, return on common stockholders equity was 34.7%, and net income as a percentage of sales was 6.1%. Do you think it would be more useful to compare wendys and McDonalds to these upper-quartile industry averages rather than to the median averages, why or why not? LINK TO VIDEO LINK TO VİDEO LINK TO TEXT LINK TO TEXT data based on companies total assets. In the industrys largest reporting companies, the median return on assets was 5.1%, dian debt-to-equity ratio was 0.93. dian return on common stockholders equity was 9.7%, the median net income as a percentage was sales of 3.6%, and the me 2%, and 0.65, respectively. Given that Wendys and McDonalds are among the largest companies in this i The upper quartile values were 8.4% 16.4 5. does this data change your answers to questions c and d? Why or why not? 9:42 PM

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