explore further differences in the two firms' profit margins, calculate a Common-Size Income Statement for DNKN and
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explore further differences in the two firms' profit margins, calculate a Common-Size Income Statement for DNKN and for SBUX, using the following template. List 3 or more significant differences that help to explain differences in the companies' profit margins.
Transcribed Image Text:
Starbucks (SBUX) Dunkin' Brands' (DNKN) Operating Expenses 87% 67% Operating Margin 13% 33% Interest Expense -0.25% 11% Taxes (% of sales) 5.1% 8.3% Effective Tax Rate 32.75% 33.6% Net (Profit) Margin 10.4% 16.5% Starbucks (SBUX) Dunkin' Brands' (DNKN) Operating Expenses 87% 67% Operating Margin 13% 33% Interest Expense -0.25% 11% Taxes (% of sales) 5.1% 8.3% Effective Tax Rate 32.75% 33.6% Net (Profit) Margin 10.4% 16.5%
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