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

5 YEAR HISTORICAL STOCK PRICE

image source: bloomberg.com

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