January 1, 2017
ASSETS
Cash and cash equivalents 198,240$
Restircted cash and advertising funds restricted assets 133,372
Accounts and notes receivable, net 98,825
Inventories 2,851
Prepaid expenses and other current assets
19,244
Total current assets 452,532
Property, plant and equipment, net 1,192,339
Goodwill 741,410
Investments 56,981
Other assets and other intangible assests 1,496,052
TOTAL ASSETS
3,939,314
$
LIABILITIES
Current portion of long-term debt 24,652$
Accounts payable 27,635
Accrued expenses and other current liabilities 102,034
Advertising funds restricted libilities 75,760
Total current liabilities 230,081
Long-term debt 2,487,630
Deferred income taxes 446,630
Other liabilities 247,354
TOTAL LIABILITIES 3,411,695
Commitments and Contingencies (Note 11)
EQUITY
Common stock, $0.10 par value; 1,500,000 shares authorized; 470,424 shares issued;
246,574 and 272,315 shares outstanding, respectively 47,042
Additional paid-in capital 2,878,589
Accumlated deficit (290,857)
Acommon stock held in treasury, at cost (2,043,797)
Accumlated other comprehensice losses (63,241)
Total stockholders' equity 527,736
TOTAL LIABILITIES AND EQUITY
3,939,431
[Source: 10-K, page 60]
The Wendy's Company and Subsidiaries
Consolidated Balance Sheets
(in thousands of U.S. dollars)
January 3, 2016 2017 2016 $ Change % Change
327,216$ 5.03% 7.96% (128,976)$ -39.42%
110,268 3.39% 2.68% 23,104 20.95%
104,854 2.51% 2.55% (6,029) -5.75%
4,312 0.07% 0.10% (1,461) -33.88%
69,919
0.49%
1.70%
(50,675)
-72.48%
616,569 11.49% 15.01% (164,037) -26.60%
1,227,944 30.27% 29.89% (35,605) -2.90%
770,781 18.82% 18.76% (29,371) -3.81%
58,369 1.45% 1.42% (1,388) -2.38%
1,435,057 37.98% 34.93% 60,995 4.25%
4,108,720
$
100.00%
100.00%
(169,406)
$
-4.12%
23,290$ 0.63% 0.57% 1,362$ 5.85%
53,681 0.70% 1.31% (26,046) -48.52%
124,404 2.59% 3.03% (22,370) -17.98%
67,399 1.92% 1.64% 8,361 12.41%
0.00% 0.00% -
0.00% 0.00% -
0.00% 0.00% -
268,774 5.84% 6.54% (38,693) -14.40%
2,402,823 63.15% 58.48% 84,807 3.53%
459,713 11.34% 11.19% (13,083) -2.85%
0.00% -
-
224,496 6.28% 5.46% 22,858 10.18%
3,355,806 86.61% 81.68% 55,889 1.67%
47,042 1.19% 1.14% -
2,874,752 73.07% 69.97% 3,837 0.13%
(356,632) -7.38% -8.68% 65,775 -18.44%
(1,741,425) -51.88% -42.38% (302,372) 17.36%
(752,823) -1.61% -18.32% 689,582 -91.60%
70,914 13.40% 1.73% 456,822 644.19%
3,426,720
100.00%
83.40%
512,711
14.96%
Horizontal AnalysisCommon Size Analysis
December 27,
2014
December 28,
2013
Net revenues 18,205$ 18,218$
Cost of sales 13,360 11,395
Gross profit 4,845 6,823
Selling, general and administrative expenses 2,956 2,124
Asset impairment and exit costs (1) 108
Operating income 1,890 4,591
Interest and other expense, net (484) (501)
Royalty income from Mondelez International - -
Earnings before income taxes 1,406 4,090
Provision for income taxes 363 1,375
Net earnings
1,043
$
2,715
$
[Source: 10-K, page 34]
Kraft Foods Group, Inc.
Consolidated Statements of Earnings
(in millions of U.S. dollars)
For the Years Ended
2014 2013 $ Change % Change
100.00% 100.00% (13)$ -0.07%
73.39% 62.55% 1,965 17.24%
26.61% 37.45% (1,978) -28.99%
16.24% 11.66% 832 39.17%
-0.01% 0.59% (109) -100.93%
10.38% 25.20% (2,701) -58.83%
-2.66% -2.75% 17 -3.39%
0.00% 0.00% -
7.72% 22.45% (2,684) -65.62%
1.99% 7.55% (1,012) -73.60%
5.73%
14.90%
(1,672)
$
-61.58%
Common Size Analysis Horizontal Analysis
Ratio
Liquidity and Efficiency
Current Ratio
Acid-test ratio
Accounts receivable turnover
Inventory turnover
Days' sales uncollected
Days' sales in inventory
Total asset turnover
Solvency
Debt ratio
Equity ratio
Debt-to-equity ratio
Times interest earned
Profitability
Profit margin ratio
Gross margin ratio
Return on total assets
Return on common stockholders' equity
Book value per common share
Basic earnings per share
Market Prospects
Price-earnings ratio
Dividend yield
Kraft Foods has low liquidity, with a current ratio of 1 and an acid-test ratio of 0.5, although this is in line with industry standards. Kraft Foods is also not very efficient, with
inventory turnover of 7.88 times, which is well below the industry average of 11.15 times, and total asset turnover of .79 times compared to an industry average of 1.76
times.
Kraft Foods has very high debt and debt-to-equity ratios. Times interest earned of almost four times means that there is not an immediate risk of default, but the company is
very highly leveraged, which is risky for investors.
Kraft Foods has strong profitability. Profit margin of 6% and return on total assets of 5% are both more than double the industry averages of 3.5% and 2%. Return on equity
of 22% is significantly stronger than the industry average of 7.9%.
Kraft Foods has a high P/E ratio at 50 times earnings, indicating that high growth is expected [this is likely because of the merger with Heinz that had been announced by the
time Kraft Foods shares stopped trading]. A dividend yield of 2.4% is a strong return for investors interested in income.
Formula
= Current assets / Current liabilities
= Cash + Short-term investments + Current receivables / Current liabilities
= Net sales / Average accounts receivable, net
= Cost of goods sold / Average inventory
= Accounts receivable, net / Net sales * 365
= Ending inventory / Cost of goods sold *365
= Net sales / Average total assets
= Total liabilities / Total assets
= Total equity / Total assets
= Total liabilities / Total equity
= Income before interest expense and income taxes / Interest expense
= Net income / Net sales
= Net sales - Cost of goods sold / Net sales
= Net income / Average total assets
= Net income - Preferred dividends / Average common stockholders' equity
= Shareholders' equity applicable to common shares / Number of common shares outstanding
= Net income - Preferred dividends / Weighted-average common shares outstanding
= Market price per common share / Earnings per share
= Annual cash dividends per share / Market price per share
Kraft Foods has low liquidity, with a current ratio of 1 and an acid-test ratio of 0.5, although this is in line with industry standards. Kraft Foods is also not very efficient, with
inventory turnover of 7.88 times, which is well below the industry average of 11.15 times, and total asset turnover of .79 times compared to an industry average of 1.76
Kraft Foods has very high debt and debt-to-equity ratios. Times interest earned of almost four times means that there is not an immediate risk of default, but the company is
very highly leveraged, which is risky for investors.
Kraft Foods has strong profitability. Profit margin of 6% and return on total assets of 5% are both more than double the industry averages of 3.5% and 2%. Return on equity
of 22% is significantly stronger than the industry average of 7.9%.
Kraft Foods has a high P/E ratio at 50 times earnings, indicating that high growth is expected [this is likely because of the merger with Heinz that had been announced by the
time Kraft Foods shares stopped trading]. A dividend yield of 2.4% is a strong return for investors interested in income.
Calculation
1.97
1.44
0.15 times
0.13 times
2,674.03 days
2,699.93 days
0.00 times
0.87
0.13
6.46
3.90 times
6%
27%
0%
0%
898.53$
1.76$ [Weighted Average shares outstanding found in 10-K, Note 14]
50.14 times
2.4% [Dividends per share found on Income Statement]
Kraft Foods has low liquidity, with a current ratio of 1 and an acid-test ratio of 0.5, although this is in line with industry standards. Kraft Foods is also not very efficient, with
inventory turnover of 7.88 times, which is well below the industry average of 11.15 times, and total asset turnover of .79 times compared to an industry average of 1.76
Kraft Foods has very high debt and debt-to-equity ratios. Times interest earned of almost four times means that there is not an immediate risk of default, but the company is
Kraft Foods has strong profitability. Profit margin of 6% and return on total assets of 5% are both more than double the industry averages of 3.5% and 2%. Return on equity
Kraft Foods has a high P/E ratio at 50 times earnings, indicating that high growth is expected [this is likely because of the merger with Heinz that had been announced by the
Quarter
High
Low
Q3 2013
58.76
$
51.20
$
Q4 2013
55.93
$
51.72
$
Q1 2014
56.56
$
50.54
$
Q2 2014
60.24
$
55.47
$
Q3 2014
61.10
$
53.33
$
Q4 2014
64.47
$
53.63
$
Q1 2015
90.61
$
60.28
$
Q1 2015
91.32
$
82.94
$
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
Q3 2013 Q4 2013 Q1 2014 Q2 2014
Q3 2014
KRFT Stock Price by Quarter
High Low
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
Q3 2013 Q4 2013 Q1 2014 Q2 2014
Q3 2014
KRFT Stock Price by Quarter
High
Low
Q3 2014
Q4 2014 Q1 2015 Q1 2015
KRFT Stock Price by Quarter
Q3 2014
Q4 2014 Q1 2015 Q1 2015
KRFT Stock Price by Quarter
Low
