Excel Project 3

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Company Information MCD

ACCT 370 EXCEL PROJECT
McDonalds
McDonald’s, in full McDonald’s Corporation, American fast-food chain that is one of the largest in the world, known for its hamburgers.
(Micah Armstrong)
Company name McDONALD’S CORPORATION (MCD)
Ticker symbol 233.89 +0.32 (+0.14%)
Industry retail sector
Products and services offered Hamburgers, sandwiches, Chicken, fish, Salads, Snacks, sides,Beverages, Desserts, shakes,Breakfast, McCafé
Major Competitors Fast-casual restaurants with names like Chipotle Mexican Grill (CMG), Panera Bread Company, Starbucks (SBUX)

MCD Historical Income Statement

McDONALD’S CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
YEARS ENDED DEC 2020, DEC 2019, DEC 2018
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Dollars and shares in millions, except per share data $ $ $
Revenues
Sales by Company-operated restaurants 8,139.20 9,420.80 10,012.70
Revenues from franchised restaurants 10,726.10 11,655.70 11,012.50
Other revenues 342.50 287.90 232.70
Total revenues 19,207.80 21,364.40 21,257.90
Operating costs and expenses
Company-operated restaurant expenses 6,981.00 7,761.00 8,266.00
Franchised restaurants-occupancy expenses 2,208.00 2,200.60 1,973.30
Other restaurant expenses 267.00 224.00 186.00
Selling, general & administrative expenses
Depreciation and amortization 301.00 262.00 215.00
Other 2,245.00 1,967.00 1,985.00
Other operating (income) expense, net (118.00) (120.00) (190.00)
Total operating costs and expenses 11,884.00 12,294.60 12,435.30
Operating income 7,323.80 9,069.80 8,822.60
Other Income & Gains
Interest Expense 1,218.10 1,121.90 981.20
Nonoperating (income) expense, net (34.80) (70.20) 25.30
Total Other Income & Gains 1,183.30 1,051.70 1,006.50
Income before provision for income taxes 6,140.50 8,018.10 7,816.10
Provision for income taxes 1,410.20 1,992.70 1,891.80
Net income 4,730.30 6,025.40 5,924.30
Earnings per common share—diluted 6.31 7.88 7.54
Weighted-average common shares outstanding— diluted 750.10 764.90 785.60

MCD Historical Balance Sheets

McDONALD’S CORPORATION
CONSOLIDATED BALACE SHEET
AS ON DEC 31 2020, DEC 31 2019, DEC 31 2018
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Dollars in millions $ $ $
ASSETS
Current assets
Cash and equivalents 3,449.10 898.50 866.00
Accounts and notes receivable 2,110.30 2,224.20 2,441.50
Inventories, at cost, not in excess of market 51.10 50.20 51.10
Prepaid expenses and other current assets 632.70 385.00 694.60
Total current assets 6,243.20 3,557.90 4,053.20
Other assets
Investments in and advances to affiliates 1,297.20 1,270.30 1,202.80
Goodwill 2,773.10 2,677.40 2,331.50
Miscellaneous 3,527.40 2,584.00 2,381.00
Total other assets 7,597.70 6,531.70 5,915.30
Lease right-of-use asset, net 13,827.70 13,261.20 - 0
Property and equipment
Property and equipment, at cost 41,476.50 39,050.90 37,193.60
Accumulated depreciation and amortization (16,518.30) (14,890.90) (14,350.90)
Net property and equipment 24,958.20 24,160.00 22,842.70
Total assets 52,626.80 47,510.80 32,811.20
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable 741.30 988.20 1,207.90
Lease liability 701.50 621.00
Income taxes 741.10 331.70 228.30
Other taxes 227.00 247.50 253.70
Accrued interest 388.40 337.80 297.00
Accrued payroll and other liabilities 1,138.30 1,035.70 986.60
Current maturities of long-term debt 2,243.60 59.10 - 0
Total current liabilities 6,181.20 3,621.00 2,973.50
Long-term Liabilities
Long-term debt 35,196.80 34,118.10 31,075.30
Long-term lease liability 13,321.30 12,757.80 - 0
Long-term income taxes 1,970.70 2,265.90 2,081.20
Deferred revenues - initial franchise fees 702.00 660.60 627.80
Other long-term liabilities 1,054.10 979.60 1,096.30
Deferred income taxes 2,025.60 1,318.10 1,215.50
Total Long-term Liabilities 54,270.50 52,100.10 36,096.10
Total Current and Long term Laibility 60,451.70 55,721.10 39,069.60
Shareholders’ equity (deficit)
Preferred stock, no par value; authorized – 165.0 million shares; issued – none - 0 - 0
Common stock, $.01 par value; authorized – 3.5 billion shares; issued – 1,660.6 million shares 16.60 16.60 16.60
Additional paid-in capital 7,903.60 7,653.90 7,376.00
Retained earnings 53,908.10 52,930.50 50,487.00
Accumulated other comprehensive income (loss) (2,586.80) (2,482.70) (2,609.50)
Common stock in treasury, at cost; 915.2 and 914.3 million shares (67,066.40) (66,328.60) (61,528.50)
Total shareholders’ equity (deficit) (7,824.90) (8,210.30) (6,258.40)
Total liabilities and shareholders’ equity (deficit) 52,626.80 47,510.80 32,811.20

MCD Historical Statement of CF

McDONALD’S CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
YEARS ENDED DEC 2020, DEC 2019, DEC 2018
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Dollars in millions $ $ $
Operating activities
Net income 4,730.50 6,025.40 5,924.30
Adjustments to reconcile to cash provided by operations
Charges and credits:
Depreciation and amortization 1,751.40 1,617.90 1,482.00
Deferred income taxes 6.40 149.70 102.60
Share-based compensation 92.40 109.60 125.10
Net gain on sale of restaurant businesses (28.20) (128.20) (308.80)
Other (75.20) 49.20 114.20
Changes in working capital items:
Accounts receivable (6.80) 27.00 (479.40)
Inventories, prepaid expenses and other current assets (68.60) 128.80 (1.90)
Accounts payable (137.50) (26.80) 129.40
Income taxes (43.60) 173.40 (33.40)
Other accrued liabilities 44.40 (3.90) (87.40)
Cash provided by operations 6,265.20 8,122.10 6,966.70
Investing activities
Capital expenditures (1,640.80) (2,393.70) (2,741.70)
Purchases of restaurant and other businesses (66.10) (540.90) (101.70)
Sales of restaurant businesses 76.30 340.80 530.80
Sales of property 27.40 151.20 160.40
Other 57.40 (628.50) (302.90)
Cash used for investing activities (1,545.80) (3,071.10) (2,455.10)
Financing activities
Net short-term borrowings (893.10) 799.20 95.90
Long-term financing issuances 5,543.00 4,499.00 3,794.50
Long-term financing repayments (2,411.70) (2,061.90) (1,759.60)
Treasury stock purchases (907.80) (4,976.20) (5,207.70)
Common stock dividends (3,752.90) (3,581.90) (3,255.90)
Proceeds from stock option exercises 295.50 350.50 403.20
Other (122.00) (23.50) (20.00)
Cash used for financing activities (2,249.00) (4,994.80) (5,949.60)
Effect of exchange rates on cash and equivalents 80.20 (23.70) (159.80)
Cash and equivalents increase (decrease) 2,550.60 32.50 (1,597.80)
Cash and equivalents at beginning of year 898.50 866.00 2,463.80
Cash and equivalents at end of year 3,449.10 898.50 866.00
Supplemental cash flow disclosures
Interest paid 1,136.00 1,066.50 959.60
Income taxes paid 1,441.90 1,589.70 1,734.40

Company Information SBUX

ACCT 370 EXCEL PROJECT
STARBUCKS CORP
Starbucks Corporation is an multinationalchain of coffee houses and roastery reserves , Starbucks is seen to be the main representation of the United States' second wave of coffee culture.
(Washington, America)
Company name STARBUCKS CORP (SBUX)
Ticker symbol 111.90 +0.34 (0.30%)
Industry retail sector
Products and services offered Hot Cofree, Hot Drinks, Ice Tea's, Cold Teas, Hot break fast, Lunch, Oatlmeal & Yogurt, Bakery & Sweets
Major Competitors Fast-casual restaurants with names like Chipotle Mexican Grill (CMG), Panera Bread Company, Mcdonald

SBUX Hist. Income Statement

STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
YEARS ENDED SEP 2020, 2019, 2018
Sep 27,2020 Sep 28,2019 Sep 30,2018
Dollars and shares in millions, except per share data $ $ $
Net revenues:
Company-operated stores 19,164.60 21,544.40 19,690.30
Licensed stores 2,327.10 2,875.00 2,652.20
Other 2,026.30 2,089.20 2,377.00
Total net revenues 23,518.00 26,508.60 24,719.50
Product and distribution costs 7,694.90 8,526.90 7,930.70
Store operating expenses 10,764.00 10,493.60 9,472.20
Other operating expenses 430.30 371.00 554.90
Depreciation and amortization expenses 1,431.30 1,377.30 1,247.00
General and administrative expenses 1,679.60 1,824.10 1,708.20
Restructuring and impairments 278.70 135.80 224.40
Total operating expenses 22,278.80 22,728.70 21,137.40
Operating income 1,239.20 3,779.90 3,582.10
Other Income & Gains
Income from equity investees 322.50 298.00 301.20
Gain resulting from acquisition of joint venture - 0 - 0 1,376.40
Net gain resulting from divestiture of certain operations - 0 622.80 499.20
Total Other Income & Gains 322.50 - 0 920.80 - 0 2,176.80
Profit before Interest and Tax 1,561.70 4,700.70 5,758.90
Interest Expenses
Interest income and other, net (39.70) (96.50) (191.40)
Interest expense 437.00 331.00 170.30
397.30 234.50 (21.10)
Earnings before income taxes 1,164.40 4,466.20 5,780.00
Income tax expense 239.70 871.60 1,262.00
Net earnings including noncontrolling interests 924.70 3,594.60 4,518.00
Net loss attributable to noncontrolling interests (3.60) (4.60) (0.30)
Net earnings attributable to Starbucks 928.30 3,599.20 4,518.30
Earnings per share — basic 0.79 2.95 3.27
Earnings per share — diluted 0.79 2.92 3.24
Weighted average shares outstanding:
Basic 1,172.80 1,221.20 1,382.70
Diluted 1,181.80 1,233.20 1,394.60

SBUX Historical Balance Sheets

STARBUCKS CORPORATION
CONSOLIDATED BALANCE SHEETS
AS ON SEP 27,2020, SEP 28,2019, SEP 30,2018
Sep 27,2020 Sep 28,2018 Sep 30,2018
Dollars in millions $ $ $
Current assets:
Cash and cash equivalents 4,350.90 2,686.60 8,756.30
Short-term investments 281.20 70.50 181.50
Accounts receivable, net 883.40 879.20 693.10
Inventories 1,551.40 1,529.40 1,400.50
Prepaid expenses and other current assets 739.50 488.20 1,462.80
Total current assets 7,806.40 5,653.90 12,494.20
Long-term Assets
Long-term investments 206.10 220.00 267.70
Equity investments 478.70 396.00 334.70
Property, plant and equipment, net 6,241.40 6,431.70 5,929.10
Operating lease, right-of-use asset 8,134.10 - 0
Deferred income taxes, net 1,789.90 1,765.80 134.70
Total Long-term Assets 16,850.20 8,813.50 6,666.20
Other long-term assets
Other long-term assets 568.60 479.60 412.20
Other intangible assets 552.10 781.80 1,042.20
Goodwill 3,597.20 3,490.80 3,541.60
Total other long-term assets 4,717.90 4,752.20 4,996.00
TOTAL ASSETS 29,374.50 19,219.60 24,156.40
LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
Current liabilities:
Accounts payable 997.90 1,189.70 1,179.30
Accrued liabilities 1,160.70 1,753.70 1,752.50
Accrued payroll and benefits 696.00 664.60 656.80
Income taxes payable 98.20 1,291.70 102.80
Current portion of operating lease liability 1,248.80 - 0 - 0
Stored value card liability and current portion of deferred revenue 1,456.50 1,269.00 1,642.90
Short-term debt 438.80 - 0
Current portion of long-term debt 1,249.90 - 0 349.90
Total current liabilities 7,346.80 6,168.70 5,684.20
Long-term debt
Long-term debt 14,659.60 11,167.00 9,090.20
Operating lease liability 7,661.70 - 0 - 0
Deferred revenue 6,598.50 6,744.40 6,775.70
Other long-term liabilities 907.30 1,370.50 1,430.50
Total long term liabilities 29,827.10 19,281.90 17,296.40
Total liabilities 37,173.90 25,450.60 22,980.60
Shareholders’ deficit:
Common stock ($0.001par value) — authorized, 2,400.0 shares; issued and outstanding, 1,173.3 and 1,184.6 shares, respectively 1.20 1.20 1.30
Additional paid-in capital 373.90 41.10 41.10
Retained deficit (7,815.60) (5,771.20) 1,457.40
Accumulated other comprehensive loss (364.60) (503.30) (330.30)
Total shareholders’ deficit (7,805.10) (6,232.20) 1,169.50
Noncontrolling interests 5.70 1.20 6.30
Total deficit (7,799.40) (6,231.00) 1,175.80
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT) 29,374.50 19,219.60 24,156.40

SBUX Historical Statement of CF

STARBUCKS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
YEARS ENDED Sep 2020, 2019, 2018
Sep 27,2020 Sep 28,2018 Sep 30,2018
Dollars in millions $ $ $
OPERATING ACTIVITIES:
Net earnings including noncontrolling interests 924.70 3,594.60 4,518.00
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 1,503.20 1,449.30 1,305.90
Deferred income taxes, net (25.80) (1,495.40) 714.90
Income earned from equity method investees (280.70) (250.60) (242.80)
Distributions received from equity method investees 227.70 216.80 226.80
Gain resulting from acquisition of joint venture - 0 - 0 (1,376.40)
Net gain resulting from divestiture of certain retail operations - 0 (622.80) (499.20)
Stock-based compensation 248.60 308.00 250.30
Goodwill impairments - 0 10.50 37.60
Non-cash lease cost 1,197.60 - 0 - 0
Loss on retirement and impairment of assets 454.40 142.60 75.60
Other 24.50 45.30 13.40
Cash provided by/(used in) changes in operating assets and liabilities:
Accounts receivable (2.70) (197.70) 131.00
Inventories (10.90) (173.00) (41.20)
Prepaid expenses and other current assets (317.50) 922.00 (839.50)
Income taxes payable (1,214.60) 1,237.10 146.00
Accounts payable (210.80) 31.90 391.60
Deferred revenue 31.00 (30.50) 7,109.40
Operating lease liability (1,231.40) - 0 - 0
Other operating assets and liabilities 280.50 (141.10) 16.40
Net cash provided by operating activities 1,597.80 5,047.00 11,937.80
INVESTING ACTIVITIES:
Purchases of investments (443.90) (190.40) (191.90)
Sales of investments 186.70 298.30 459.00
Maturities and calls of investments 73.70 59.80 45.30
Acquisitions, net of cash acquired - 0 - 0 (1,311.30)
Additions to property, plant and equipment (1,483.60) (1,806.60) (1,976.40)
Net proceeds from the divestiture of certain operations - 0 684.30 608.20
Other (44.40) (56.20) 5.60
Net cash used in investing activities (1,711.50) (1,010.80) (2,361.50)
FINANCING ACTIVITIES:
Proceeds from issuance of short-term debt 1,406.60 - 0 - 0
Repayments of short-term debt (967.70) - 0 - 0
Proceeds from issuance of long-term debt 4,727.60 1,996.00 5,584.10
Repayments of long-term debt - 0 (350.00) - 0
Proceeds from issuance of common stock 298.80 409.80 153.90
Cash dividends paid (1,923.50) (1,761.30) (1,743.40)
Repurchase of common stock (1,698.90) (10,222.30) (7,133.50)
Minimum tax withholdings on share-based awards (91.90) (111.60) (62.70)
Other (37.70) (17.50) (41.20)
Net cash provided by/(used in) financing activities 1,713.30 (10,056.90) (3,242.80)
Effect of exchange rate changes on cash and cash equivalents 64.70 (49.00) (39.50)
Net increase/(decrease) in cash and cash equivalents 1,664.30 (6,069.70) 6,294.00
CASH AND CASH EQUIVALENTS:
Beginning of period 2,686.60 8,756.30 2,462.30
End of period 4,350.90 2,686.60 8,756.30
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest, net of capitalized interest 396.90 299.50 137.10
Income taxes 1,699.10 470.10 1,176.90

Financial Statement Analysis

Ratios Formulas McDonald's Starbucks Industry Ave. Ratio (58 - Eating And Drinking)
Liquidity Ratios
Current Ratio = Current Assets / Current Lability 1.01 Times 1.06 Times .75 to .90
Quick Ratio = (Current Assets-Inventory) / Current Lability 1.00 Times 0.80 Times 1.01
Leverage Ratios
Debt to Total Assets Ratio = (Total Assets-total equity) / Total Assets 1.15 Times 1.27 Times 0.84 to 1.15
Debt Equity Ratio = total Debt / Total Equity (7.73) Times (4.77) Times Negative equity
Long-Term Debt to Equity = Long term Debt / Equity (6.94) Times (3.82) Times
Times Interest Earned Ratio = EBIT / Interest 6.19 Times 0.25 Times -1.43 to 6.04
Activity Ratios
Inventory Turnover = Cost of Good Sold / Inventory - - 14.36 Times 2 to 11 Days
Fixed Assets Turnover = Sales / Total Fixed Assets 0.59 Times 1.09 Times
Total Assets Turnover = Sales / Total Assets 0.36 Times 0.80 Times 1.43 to 2.61 times
Accounts Receivable Turnover = Sales / Trade Receivable 9.10 Times 26.62 Times
Average Collection Period = 365 Days / Accounts receivable Turnover 40.11 Days 13.71 Days 15 to 41 days
Profitability Ratios
Gross Profit Margin = Gross Profit / Sales 31.97% 1.37% 40.5% to 49.8%
Operating Profit Margin = Operating Profit / Sales 38.13% 5.27% -2.4% to 38.3%
Net Profit Margin = Net Profit / Sales 24.63% 3.93%
Return on Total Assets (ROA) = Net Income / Total Assets 8.99% 3.15% -1.6 % to 9.4%
Return on Stockholders’ Equity (ROE) = Net Income / Total Equity -60.45% -11.85% Negitive Equity
Earnings Per Share (EPS) = Net Income / Shares Outstanding 6.31 0.79 $6.35
Price Earnings Ratio = Price per Share / EPS 37.09 142.46 $6.31
Note
Industry Average source Link
https://www.readyratios.com/sec/MCD_mcdonalds-corp