Ratio Analysis and Statement of Cash Flow: Wendy's vs. McDonald's.

Cash run is the lifeblood of all businesses, regardless of size; if a conjunction has no hard currency flow it would wee to cease doing business. For the McDonalds Corporation, exchange flow from operating during the time point ending declination 2004 was $3,903,600,000. The balance sheet of McDonalds also reveals that the money flow generated by investing was $1,383,100,000 through December 31, 2004, jibe to annual data, and cash flow from financial activities was $1,633,500,000. McDonalds major competitor, Wendys internationalistic Inc. generated $130,217,000 from investing, according to the annual data collected through January 2005. This government issue is derived from $29,650,000 in comport investments and $125,301,000 in financing activities with cash flow from operations during the said(prenominal) time period, (www.finance.yahoo.com). The influencing factors that have the most impact upon each(prenominal) of these fast-food companies fundament line have be en the growth of competitors and their own expanding output lines. sack income for McDonalds fell to $530.4 million, or 42 cents a shargon, from $590.7 million, or 47 cents a share. The latest report includes an incremental taxation write down of $112 million, or 9 cents a share, resulting from a move to extradite approximately 3.2 billion in abroad earnings infra the Homeland Investment Act, (Gray, 2005). The revenue of the handcuffs 13,000 plus U. S.

restaurants locomote 7% for the second quarter of 2005 partly driven by new products, such as fruit-and-walnut salads and the institution of deli-type s andwiches. In the last few years, McDonalds ! has focused on the indwelling improvements of their existing restaurants rather than on expansion. McDonalds has also stated that cost increase beef damages are having an impact on their backside line. During this years first quarter the cost of beef rose 6% and continued to rise in the second-quarter with an additional 10% increase. head word Financial Officer, Matthew H. Paull... If you want to draw off a all-embracing essay, order it on our website: OrderCustomPaper.com

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