Are ratios improving or worsening over time? How is your company(Wendy’s) doing compared to its competitor(McDonalds)?

Assignment
Wendy’s

Profit of margin
2018-2019: (1709.0-597.5)/1709.0 65%
2019-2020: (1733.8-614.9)/1733.8 64.53%
2020-2021:(1897.0-611.7)/1897.0 67.75%
Asset Turnover
2019: 1.709B/4.995B 34.21%
2020: 1.734B/5.040B 34.4%
2021: 1.897B/5.101B 37.19%
Return on asset
2019: 136.940/4994529=2.7%
2020: 2.35%
2021: 3.94%
Return on Stockholders equity
2019: 22.32%
2020: 23.52%
2021: 38.65%
Earnings per share
2019: $0.58
2020: $0.52
2021: $0.89
Price Earning Ratio
2019: 33.97%
2020: 40.55%

2021: 26.29%
Payout Ratio
2019: 70.37%
2020: 55.05%
2021: 47.33%

Mcdonalds
Profit of margin
2019: 52.33%
2020: 50.77%
2021: 54.17%
Asset Turnover
2019: 21.36B/47.51B 44.95%
2020: 19.21B/52.63B 36.5%
2021: 23.22B/53.85B 43.12%
Return on asset
2019: 13.77%
2020: 9.41%
2021: 14.39%
Return on Stockholders equity
2019: -79.88%
2020: -53.99%
2021: -129.42%

Earnings per share
2019: $7.88
2020: $6.31
2021: $10.04
Price Earning Ratio
2019: 23.52%
2020: 32.64%
2021: 26.26%
Payout Ratio
2019: 59.45%
2020: 79.33%
2021: 51.94%

The ratios are improving over time besides Price Earning Ratio and Pay out Ratio. The profit margin increased 2.75%, Asset Turnover increased 2.98%, Return on Asset increased 1.24%, Return on Stockholders equity increased 16.33%, Earnings per share increased $0.31. However, Price Earning Ratio decreased 7.68% and Payout Ratio decreased 23.04 for the 2018-2021 period of time. It is obvious that during 2020-2021, the covid start spreading and people won’t go to restaurants. Instead of that, people used take out and used delivery service to get Wendy’s so these ratios decreased. When comparing charts with Mcdonalds, the Wendy’s sales are stable and keep growing during covid time, and didn’t affect as much as we expected while Mcdonalds had a huge damage on it during covid. Even though the number one fast food chain in the world known as Mcdonalds numbers went down, it could tell us how much impact the covid made to the food industry.

Are ratios improving or worsening over time? How is your company(Wendy’s) doing compared to its competitor(McDonalds)?

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Are ratios improving or worsening over time? How is your company(Wendy’s) doing compared to its competitor(McDonalds)?