Measuring Financial Health of Restaurant Companies – A Comparative Study

Abstract

In a globalized business world it is often necessary to compare companies across national boundaries when we are trying to do a financial analysis. This comparison often includes an examination of financial statements, and corporate valuation models. In this study we are trying to compare YUM with other two leading restaurants (Mc Donald’s Corp (MC) and Darden Restaurants (DRI)) to find out the financial health of YUM. We have used three years balance sheet to perform a financial analysis and also we have performed the cash flow evaluation to conclude that YUM’s financial health was satisfactory and YUM had done much better than others in all aspects of ratios except for profitability and had the best ROIC.