1. Investment Analysis
Team 9

2. OUTLINE
•
Company Information
•
Market Data Review
•
Financial Analysis
•
Investment
Recommendation

3. COMPANY
INFORMATION

4. COMPANY INFORMATION
-Leading global foodservice
retailer
-34,000 local restaurants
-Serving approximately 69
million people in 118
countries each day.

5. MARKET DATA
REVIEW

6. 5 YEAR HISTORICAL STOCK PRICE
image source: bloomberg.com

7. MARKET DATA
P/E RATIO
17.56
MARKET CAP
97.21B
EARNINGSPER-SHARE
5.54

8. FINANCIAL
ANALYSIS

9. FINANCIAL ANALYSIS
•
Historical Growth Rates
•
Competitive Analysis
•
Profitability, Efficiency, Liquidity, Solvency,
Performance and Coverage

10. 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%

11. HISTORICAL GROWTH RATES
Net Income
Revenue
Operating Income

12. HISTORICAL GROWTH RATES
5 YEAR DIVIDEND
PAYOUT
GROWTH OF
15.5%

13. COMPETITIVE
ANALYSIS

14. COMPETITIVE ANALYSIS
•
Profitability
•
Solvency
•
Efficiency
•
Coverage
•
Liquidity
•
Performance

15. PROFITABILITY
Assumed figures are as of FY 2012
Mcdonald’s
Burger King
Yum!
31.2%
26.7%
16.8%
19.8%
5.9%
11.7%
ROA
55.5%
9.4%
108.5%
ROE
36.8%
10.0%
70%
Operating
Profit Margin
Net Profit
Margin

16. PROFITABILITY
Operating Profit Margin
Net Profit Margin

17. PROFITABILITY
ROA
ROE

18. EFFICIENCY
Assumed figures are as of FY 2012
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%

19. EFFICIENCY
Fixed Assets Turnover
Total Asset Turnover
Equity Turnover

20. LIQUIDITY
Assumed figures are as of FY 2012
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

21. LIQUIDITY
Current Ratio
Quick Ratio
Cash Ratio

22. SOLVENCY
Assumed figures are as of FY 2012
Mcdonald’s
Burger King
Yum!
Debt-toAsset Ratio
0.58x
0.78x
0.74x
Debt-toEquity Ratio
1.31x
3.73x
2.97x
Financial
Leverage
Ratio
2.31x
4.73x
3.99x

23. SOLVENCY
Debt-to-Asset Ratio
Financial Leverage Ratio
Debt-to-Equity Ratio

24. PERFORMANCE
Assumed figures are as of FY 2012
Mcdonald’s
Burger King
Yum!
Cash Flowto-Revenue
25.3%
11.4%
16.8%
Cash ROA
20.4%
4.0%
108.5%
Cash ROE
46.9%
20.1%
110.1%

25. PERFORMANCE
Cash Flow-to-Revenue
Cash ROA
Cash ROE

26. COVERAGE
Assumed figures are as of FY 2012
Mcdonald’s
Burger King
Yum!
Debt
Coverage
0.35x
0.05x
0.34x
Debt
Payment
16.64x
0.99x
15.40x

27. PERFORMANCE
Debt Coverage
Debt Payment

28. SUMMARY OF ANALYSIS
•
Market momentum
•
Very Liquid
•
Not overvalued
•
Strong Cash Flow
•
Highly Profitable
•
Can pay debts
•
Highly Efficient
•
Solvent

29. INVESTMENT
RECOMMENDATION
Fundamentally speaking, we recommend a
strong BUY position in Mcdonald’s

30. End of Presentation