Financial Analysis Presentation
BBattungMcDonaldsExcelproject.xlsx
info
ACCT 370 Excel Project | |
McDonalds | |
Company Information | |
Student's Name | |
Company Name | McDonalds |
Ticker Simple | MCD |
Industry | Global restaurant industry. |
Product and service offered | Fast food |
Major Competitors | KFC |
income statement
McDonalds | ||||||||
Consolidated Statement of Income | ||||||||
As January 2021, Decemeber 2019, decemeber 2018 | ||||||||
2020 | 2019 | 2018 | ||||||
REVENUES | ||||||||
Sales by Company-operated restaurants | $8, 139.2 | $9, 420.8 | $10, 012.7 | |||||
Revenues from franchised restaurants | 10,726.1 | 11,655.7 | 11,012.5 | |||||
Other revenues | 342.5 | 287.9 | 232.7 | |||||
Total revenues | 19,207.8 | 21,364.4 | 21,257.9 | |||||
OPERATING COSTS AND EXPENSES | ||||||||
Company-operated restaurant expenses | ||||||||
Food & paper | 2,564.2 | 2,980.3 | 3,153.8 | |||||
Payroll & employee benefits | 2,416.4 | 2,704.4 | 2,937.9 | |||||
Occupancy & other operating expenses | 2,000.6 | 2,075.9 | 2,174.2 | |||||
Franchised restaurants-occupancy expenses | 2,207.5 | 2,200.6 | 1,973.3 | |||||
Other restaurant expenses | 267.0 | 223.8 | 186.1 | |||||
Selling, general & administrative expenses | ||||||||
Depreciation and amortization | 300.6 | 262.5 | 214.8 | |||||
Other | 2,245.0 | 1,966.9 | 1,985.4 | |||||
Other operating (income) expense, net | -117.5 | -119.8 | -190.2 | |||||
Total operating costs and expenses | 11,883.8 | 12,294.6 | 12,435.3 | |||||
Operating income | 7,324.0 | 9,069.8 | 8,822.6 | |||||
Interest expense-net of capitalized interest of $6.0, $7.4 and $5.6 | 1,218.1 | 1,121.9 | 981.2 | |||||
Nonoperating (income) expense, net | -34.8 | -70.2 | 25.3 | |||||
Income before provision for income taxes | 6,140.7 | 8,018.1 | 7,816.1 | |||||
Provision for income taxes | 1,410.2 | 1,992.7 | 1,891.8 | |||||
Net income | $4, 730.5 | $6,025.40 | $ 5, 924.3 | |||||
Balance sheet
McDonalds | ||
Consolidated Balance Sheet | ||
As January 2021, Decemeber 2019, decemeber 2018 | ||
2021 | 2020 | |
ASSETS | ||
Current assets | ||
Cash and equivalents | $ 4, 709.2 | $3,449.10 |
Accounts and notes receivable | 1,872.4 | 2,110.3 |
Inventories, at cost, not in excess of market | 55.6 | 51.1 |
Prepaid expenses and other current assets | 511.3 | 632.7 |
Total current assets | 7,148.5 | 6,243.2 |
Other assets | ||
Investments in and advances to affiliates | 1,201.2 | 1,297.2 |
Goodwill | 2,782.5 | 2,773.1 |
Miscellaneous | 4,449.5 | 3,527.4 |
Total other assets | 8,433.2 | 7,597.7 |
Lease right-of-use asset, net | 13,552.0 | 13,827.7 |
Property and equipment | ||
Property and equipment, at cost | 41,916.6 | 41,476.5 |
Accumulated depreciation and amortization | -17196 | -16518.3 |
Net property and equipment | 24,720.6 | 24,958.2 |
Total assets | $8,433.20 | $52, 626.8 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Current liabilities | ||
Accounts payable | $1,006.80 | $741.30 |
Lease liability | 705.5 | 701.5 |
Income taxes | 360.7 | 741.1 |
Other taxes | 236.7 | 227.0 |
Accrued interest | 363.3 | 388.4 |
Accrued payroll and other liabilities | 1,347.0 | 1,138.3 |
Current maturities of long-term debt | — | 2,243.6 |
Total current liabilities | 4,020.0 | 6,181.2 |
Long-term debt | 35,622.7 | 35,196.8 |
Long-term lease liability | 13,020.9 | 13,321.3 |
Long-term income taxes | 1,896.8 | 1,970.7 |
Deferred revenues - initial franchise fees | 738.3 | 702.0 |
Other long-term liabilities | 1,081.0 | 1,054.1 |
Deferred income taxes | 2,075.6 | 2,025.6 |
Shareholders’ equity (deficit) | ||
Preferred stock, no par value; authorized – 165.0 million shares; issued – none | — | — |
Common stock, $.01 par value; authorized – 3.5 billion shares; issued – 1,660.6 million shares | 16.6 | 16.6 |
Additional paid-in capital | 8,231.6 | 7,903.6 |
Retained earnings | 57,534.7 | 53,908.1 |
Accumulated other comprehensive income (loss) | -2573.7 | -2586.8 |
Common stock in treasury, at cost; 915.8 and 915.2 million shares | -67810.2 | -67066.4 |
Total shareholders’ equity (deficit) | -4601 | -7824.9 |
Total liabilities and shareholders’ equity (deficit) | $52,626.80 | $47,510.8 |
Cash Flow
McDonalds | ||||||||||
Consolidated Cash flow statemet | ||||||||||
As January 2021, Decemeber 2019, decemeber 2018 | ||||||||||
In millions | Years ended December 31, 2020 | 2019 | 2018 | |||||||
Operating activities | ||||||||||
Net income | $ 4,730.5 | $ | 6,025.4 | $5,924.30 | ||||||
Adjustments to reconcile to cash provided by operations | ||||||||||
Charges and credits: | ||||||||||
Depreciation and amortization | 1,751.4 | 1,617.9 | 1,482.0 | |||||||
Deferred income taxes | 6.4 | 149.7 | 102.6 | |||||||
Share-based compensation | 92.4 | 109.6 | 125.1 | |||||||
Net gain on sale of restaurant businesses | -28.2 | -128.2 | -308.8 | |||||||
Other | -75.2 | 49.2 | 114.2 | |||||||
Changes in working capital items: | ||||||||||
Accounts receivable | -6.8 | 27.0 | -479.4 | |||||||
Inventories, prepaid expenses and other current assets | -68.6 | 128.8 | -1.9 | |||||||
Accounts payable | -137.5 | -26.8 | 129.4 | |||||||
Income taxes | -43.6 | 173.4 | -33.4 | |||||||
Other accrued liabilities | 44.4 | -3.9 | -87.4 | |||||||
Cash provided by operations | 6,265.2 | 8,122.1 | 6,966.7 | |||||||
Investing activities | ||||||||||
Capital expenditures | -1,640.80 | -2,393.70 | -2741.7 | |||||||
Purchases of restaurant and other businesses | -66.1 | -540.9 | -101.7 | |||||||
Sales of restaurant businesses | 76.3 | 340.8 | 530.8 | |||||||
Sales of property | 27.4 | 151.2 | 160.4 | |||||||
Other | 57.4 | -628.5 | -302.9 | |||||||
Cash used for investing activities | -1,545.80 | -3,071.10 | -2455.1 | |||||||
Financing activities | ||||||||||
Net short-term borrowings | -893.1 | 799.2 | 95.9 | |||||||
Long-term financing issuances | 5,543.0 | 4,499.0 | 3,794.5 | |||||||
Long-term financing repayments | -2,411.70 | -2,061.90 | -1759.6 | |||||||
Treasury stock purchases | -907.8 | -4,976.20 | -5207.7 | |||||||
Common stock dividends | -3,752.90 | -3,581.90 | -3255.9 | |||||||
Proceeds from stock option exercises | 295.5 | 350.5 | 403.2 | |||||||
Other | -122 | -23.5 | -20 | |||||||
Cash used for financing activities | -2,249.00 | -4,994.80 | -5949.6 | |||||||
Effect of exchange rates on cash and equivalents | 80.2 | -23.7 | -159.8 | |||||||
Cash and equivalents increase (decrease) | 2,550.6 | 32.5 | -1597.8 | |||||||
Cash and equivalents at beginning of year | 898.5 | 866.0 | 2,463.8 | |||||||
Cash and equivalents at end of year | $ | 3,449.1 | $ | $ 898.5 | $ 866.0 | |||||
Supplemental cash flow disclosures | ||||||||||
Interest paid | $ | 1,136.0 | $ | $ 1,066.5 | $ 959.6 | |||||
Income taxes paid | 1,441.9 | 1,589.7 | 1,734.4 |