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Investment Analysis Team 9
OUTLINE
• Company Information
• Market Data Review
• Financial Analysis
• Investment Recommendation
COMPANY INFORMATION
COMPANY INFORMATION
-Leading global foodservice retailer -34,000 local restaurants -Serving approximately 69 million people in 118 countries each day.
MARKET DATA REVIEW
MARKET DATA
P/E RATIO
MARKET CAP
EARNINGS-PER-SHARE
17.56
97.21B
5.54
FINANCIAL ANALYSIS
FINANCIAL ANALYSIS
• Historical Growth Rates
• Competitive Analysis
• Profitability, Efficiency, Liquidity, Solvency, Performance and Coverage
HISTORICAL GROWTH RATES
FY 2012 FY 2011 FY 2010
Revenue 1.7% 12.7% 5%
Operating Income 1% 14% 9%
Net Income 0.7% 11% 9%
HISTORICAL GROWTH RATESNet Income Revenue Operating Income
HISTORICAL GROWTH RATES
5 YEAR DIVIDEND PAYOUT
GROWTH OF 15.5%
COMPETITIVE ANALYSIS
• Profitability
• Efficiency
• Liquidity
COMPETITIVE ANALYSIS
• Solvency
• Coverage
• Performance
PROFITABILITY
Mcdonald’s Burger King Yum!
Operating Profit Margin
31.2% 26.7% 16.8%
Net Profit Margin 19.8% 5.9% 11.7%
ROA 55.5% 9.4% 108.5%ROE 36.8% 10.0% 70%
Assumed figures are as of FY 2012
PROFITABILITYOperating Profit Margin Net Profit Margin
PROFITABILITYROA ROE
EFFICIENCY
Mcdonald’s Burger King Yum!
Fixed Assets Turnover 116% 205.7% 328%
Equity Turnover 185.7% 176.8% 654%
Total Asset Turnover 80.6% 35.2% 644.5%
Assumed figures are as of FY 2012
EFFICIENCYFixed Assets Turnover Equity TurnoverTotal Asset Turnover
LIQUIDITY
Mcdonald’s Burger King Yum!
Current Ratio 1.45x 2.2x 0.87x
Quick Ratio 1.09x 1.8x 0.49x
Cash Ratio 0.69x 1.3x 0.35x
Assumed figures are as of FY 2012
LIQUIDITYCurrent Ratio Quick Ratio Cash Ratio
SOLVENCY
Mcdonald’s Burger King Yum!
Debt-to-Asset Ratio 0.58x 0.78x 0.74x
Debt-to-Equity Ratio 1.31x 3.73x 2.97x
Financial Leverage
Ratio2.31x 4.73x 3.99x
Assumed figures are as of FY 2012
SOLVENCYDebt-to-Asset Ratio Debt-to-Equity RatioFinancial Leverage Ratio
PERFORMANCE
Mcdonald’s Burger King Yum!
Cash Flow-to-Revenue 25.3% 11.4% 16.8%
Cash ROA 20.4% 4.0% 108.5%
Cash ROE 46.9% 20.1% 110.1%
Assumed figures are as of FY 2012
PERFORMANCECash Flow-to-Revenue Cash ROA Cash ROE
COVERAGE
Mcdonald’s Burger King Yum!
Debt Coverage 0.35x 0.05x 0.34x
Debt Payment 16.64x 0.99x 15.40x
Assumed figures are as of FY 2012
PERFORMANCEDebt Coverage Debt Payment
SUMMARY OF ANALYSIS
• Market momentum
• Not overvalued
• Highly Profitable
• Highly Efficient
• Very Liquid
• Strong Cash Flow
• Can pay debts
• Solvent
INVESTMENT RECOMMENDATION
Fundamentally speaking, we recommend a
strong BUY position in Mcdonald’s
End of Presentation
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