EXHIBIT 1 Income Statement ($ millions) Total Revenue Operating Income Net Income Source: Annual Report of McDonald's Corporation, 2008. EXHIBIT 2 Balance Sheet ($ millions) Current Assets Total Assets Current Liabilities Total Liabilities Shareholder Equity Dec. 31, 2018 $21,025 8,823 5,924 Dec. 31, 2018 $4,053 32,811 2,973 39,069 (6,258) Sources: Annual Report. McDonald's Corporation, 2018 Annual Report. McDonald's Corporation, 2019. Year Ending Dec. 31, 2017 $22,820 9.553 5,192 Year Ending Dec. 31, 2017 $ 5,327 33,803 2,890 37,071 (3,268) Dec. 31, 2016 $24,622 Dec. 31, 2016 7,745 4,687 $4,849 31,024 3,468 33,228 (2,204) DU EXHIBIT 3 Breakdown of Revenues ($ millions) U.S. International Lead Markets High Growth Markets Foundational Markets & Corporate Source: Annual Report of McDonald's Corporation, 2018 EXHIBIT 4 U.S. Customer Satisfaction Index for Selected Chains 2017 2016 2015 2014 2013 Year McDonald's Burger King Wendy's KFC Taco Bell Chipotle Mexican Grill 2018 69 77 77 74 69 69 67 71 73 76 77 76 72 76 76 Source: American Customer Satisfaction Index (ACSI 76 76 73 78 79 78 78 73 74 81 76 75 72 72 2018 74 $7,666 7,600 3,989 1,770 79 79 78 83 - 2017 $8,006 7,340 5.533 1,941 87 87 Chick-fil-A Panera Bread Subway 87 86 - 2016 81 82 81 80 $8,253 7,223 6,161 2,985 - 80 81 80 77 78 83
EXHIBIT 1 Income Statement ($ millions) Total Revenue Operating Income Net Income Source: Annual Report of McDonald's Corporation, 2008. EXHIBIT 2 Balance Sheet ($ millions) Current Assets Total Assets Current Liabilities Total Liabilities Shareholder Equity Dec. 31, 2018 $21,025 8,823 5,924 Dec. 31, 2018 $4,053 32,811 2,973 39,069 (6,258) Sources: Annual Report. McDonald's Corporation, 2018 Annual Report. McDonald's Corporation, 2019. Year Ending Dec. 31, 2017 $22,820 9.553 5,192 Year Ending Dec. 31, 2017 $ 5,327 33,803 2,890 37,071 (3,268) Dec. 31, 2016 $24,622 Dec. 31, 2016 7,745 4,687 $4,849 31,024 3,468 33,228 (2,204) DU EXHIBIT 3 Breakdown of Revenues ($ millions) U.S. International Lead Markets High Growth Markets Foundational Markets & Corporate Source: Annual Report of McDonald's Corporation, 2018 EXHIBIT 4 U.S. Customer Satisfaction Index for Selected Chains 2017 2016 2015 2014 2013 Year McDonald's Burger King Wendy's KFC Taco Bell Chipotle Mexican Grill 2018 69 77 77 74 69 69 67 71 73 76 77 76 72 76 76 Source: American Customer Satisfaction Index (ACSI 76 76 73 78 79 78 78 73 74 81 76 75 72 72 2018 74 $7,666 7,600 3,989 1,770 79 79 78 83 - 2017 $8,006 7,340 5.533 1,941 87 87 Chick-fil-A Panera Bread Subway 87 86 - 2016 81 82 81 80 $8,253 7,223 6,161 2,985 - 80 81 80 77 78 83
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Transcribed Image Text:0
Required information
Financial Analysis: McDonald's
The following questions are about key financial ratios that impart useful insights into the financial health of McDonald's.
The financial ratios offer quantitative measurements of the success or failure of McDonald's strategies.
Part 1: Key Financial Ratio
Using available data in the case, calculate the requested financial ratios. Round all numbers to the nearest hundredth. For example,
answers should look like -0.05 or 1.33.
Operating Income to
Revenue
Net Income to Revenue
Current Ratio
Total Debt Ratio
2018
%
%
2017
%
2016
%
%
Transcribed Image Text:EXHIBIT 1 Income Statement ($ millions)
Total Revenue
Operating Income
Net Income
Source: Annual Report of McDonald's Corporation, 2018.
EXHIBIT 2 Balance Sheet($ millions)
Current Assets
Total Assets
Current Liabilities
Total Liabilities
Shareholder Equity
Dec. 31, 2018
$21,025
8,823
5,924
Dec. 31, 2018
$ 4,053
32.811
2,973
39,069
(6,258)
Sources: Annual Report. McDonald's Corporation, 2018 Annual Report. McDonald's Corporation, 2019.
Year Ending
Dec. 31, 2017
$22,820
9,553
5,192
Year Ending
Dec. 31, 2017
$ 5,327
33,803
2,890
37,071
(3,268)
Dec. 31, 2016
$24,622
7,745
Dec. 31, 2016
4,687
$ 4,849
31,024
3,468
33,228
(2,204)
C 219
EXHIBIT 3 Breakdown of Revenues ($ millions)
Breakdown of
U.S.
International Lead Markets
High Growth Markets
Foundational Markets & Corporate
Source: Annual Report of McDonald's Corporation, 2018.
EXHIBIT 4 U.S. Customer Satisfaction Index for Selected Chains
2015
Year McDonald's Burger King Wendy's KFC Taco Bell Chipotle Mexican Grill
2018
69
76
77
74
2017
2016
2014
2013
69
69
67
71
73
77
76
72
76
76
Source: American Customer Satisfaction Index (ACSI)
77
76
76
73
78
79
78
78
73
74
81
76
75
72
72
2018
74
$7,666
7,600
3,989
1,770
79
79
78
83
-
2017
$8,006
7,340
5.533
1,941
87
87
87
2016
86
Chick-fil-A Panera Bread Subway
81
82
81
$8,253
80
7,223
6,161
2,985
C 219
80
81
80
77
78
83
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