Скачать или смотреть Best Stock To Buy Now? MCDONALD'S vs. BURGER KING| Financial Analysis Secrets 2024

Dive into the financial landscapes of McDonald's and Burger King with a comprehensive analysis of their stock market performance in 2024. Explore key metrics such as total revenues, profit margins, regional distribution, and operational efficiency to make informed investment decisions.

In the dynamic world of fast-food giants, McDonald's and Burger King stand tall. A financial analysis of their performance in 2024 sheds light on crucial insights for potential investors. Let's dissect the numbers and understand the financial journey of these two industry leaders.

Total Revenues and Growth:

McDonald's reported a robust total revenue of $19 billion in the third quarter of 2023, with a 5-year Compound Annual Growth Rate (CAGR) of 4%.
Burger King, not far behind, marked its territory with a total revenue of $5.2 billion, experiencing a 5-year CAGR of 5%.
Revenue Structure:

McDonald's revenue structure comprises 61% from franchised revenues and 38% from company-operated sales.
Burger King's revenue is diversified with 57% from Tim Hortons, 30% from Burger King, 10% from Popeyes, and 3% from Firehouse Subs.
Geographical Distribution:

McDonald's derives 41% of its revenue from the United States, 48% from International Operated Markets, and 10% from International Developmental Licensed Markets.
Burger King's revenue comes primarily from Canada (52%), followed by the United States (36%), and other regions (13%).
Profitability Margins:

McDonald's boasts a Gross Profit Margin of 58%, surpassing the 5-year average of 54%, and a Net Profit Margin of 34%, exceeding the 5-year average of 29%.
Burger King, though competitive, trails with a Gross Profit Margin of 40% and a Net Profit Margin of 13%, aligned with its 5-year averages.
Net Profit and Growth:

McDonald's net profit reached $6 billion, showcasing a 5-year CAGR of 7%.
Burger King's net profit hit $1 billion, experiencing a commendable 5-year CAGR of 12%.
Asset and Leverage:

McDonald's total assets stand at $52 billion, with net assets of $5 billion, exhibiting a leverage ratio of 9%.
Burger King's total assets amount to $23 billion, with net assets of $5 billion, showcasing a higher equity to total assets ratio of 20%.
Liquidity Ratios:

McDonald's outshines Burger King in liquidity with a Current Ratio of 1.71 and a Quick Ratio of 1.7.
Burger King maintains decent liquidity with a Current Ratio of 1.15 and a Quick Ratio of 1.07.
Operational Efficiency:

McDonald's inventory days are impressively low at 2 days, while Burger King operates on a 13-day inventory cycle.
Both companies exhibit solid accounts receivable management, with McDonald's at 31 days and Burger King at 34 days.
Cash Flow Performance:

McDonald's operating cash flow stands at $7 billion, with a healthy OCF to net income ratio of 1.1.
Burger King's operating cash flow is $1 billion, maintaining an OCF to net income ratio of 1.3.
Dupont Analysis:

McDonald's ROE for Q3 2023 is an outstanding 177%, fueled by a robust Net Profit Margin (34%), Asset Turnover (0.5), and Asset to Equity (10.73).
Burger King's ROE of 19% is driven by a Net Profit Margin (13%), Asset Turnover (0.3), and Asset to Equity (4.95).
In conclusion, this financial analysis unveils the nuanced strengths and weaknesses of McDonald's and Burger King, empowering investors to make well-informed decisions in the ever-evolving fast-food market of 2024.
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