For this Data Analysis exercise, you will assume the role of a data analyst at

Chipotle. The recent article, "Why Are Chipotle Shares Sinking After Strong

Earnings" $($link here: Why Are Chipotle Shares Sinking after Strong Earnings?$)$ has

caused a lot of concern within the company. Investors are worried about their

investments. Chipotle's executives want to understand if their competition also

experienced a similar effect. The manager of data analytics has prepared a data

visualization dashboard using data from income statements and historic stock prices

to explain to executives how earnings and stock prices compare with Chipotle's

competitor, McDonald's. The manager has asked you to analyze that data and

prepare your findings for a presentation to the board.

The PDF attached below includes selected revenue and stock price metrics for

Chipotle and McDonald's for the period Quarter $3$ of $2018$ through Quarter $4$ of $2019.$ question:

$6)$ What conclusion can be drawn from the data in the graphs?The line graph for EPS Growth for McDonald's looks identical to the change in share prices, therefore it is the primary cause of share price changes.McDonald's share price dip in the $4$th Quarter of $2019$ is not directly explained by changes in its revenues. The share price likely dropped because $(1)$ its financial performance failed to meet investor's expectations and $(2)$ as a result of other market conditions.The negative EPS growth percentage in the $1$st Quarter of $2019$ caused McDonald's share price to fall in the $2$nd Quarter of $2019.$McDonald's change in Gross Income in the $3$rd Quarter of $2019$ explains the changes in share price in the $4$th Quarter of $2019.7)$ Despite continued high revenues for both companies in the $2$nd and $3$rd Quarters of $2019,$ stock prices for both companies dipped in the $4$th Quarter. Chipotle's stock price had mostly recovered by the end of the $4$th quarter, but McDonald's did not. Which of the following statements is likely true?Chipotle had higher gross income for all periods than McDonald's. This resulted in a faster recovery of the stock price for Chipotle.Investors likely had more confidence in Chipotle's earnings and future cash flows than they did in McDonald's, which resulted in a faster recovery of the stock price.McDonald's had negative EPS Growth in the $3$rd Quarter of $2019,$ while Chipotle did not. This resulted in faster recovery of stock price for Chipotle.

Chipotle reported a very substantial increase in Gross Income in the $3$rd quarter of $2019,$ while McDonald's did not. This resulted in a faster recovery of stock price for Chipotle.

Question $8(3$ points$)$ Question $8(3$ points$)$

Continuing to use the PDF from Question $1,($you can access that PDF file by clicking here: Chipotle vs$.$ McDonalds Comparison.pdf$)$ answer the following question:

$8)$ True or False: There is a direct and proportional correlation between McDonald's earnings per share and stock price.TrueFalse

Question $9(3$ points$)$

Figure $3$: Sales Revenue vs Gross Income $-$ Chipotle

Figure $4$: Sales Revenue vs Gross IncomeMcDonald's

Figure $5$: Stock Price $-$ Chipotle

Figure $6$: Stock Price $-$ McDonald's

Data Source: Wall Street Journal, Income Statement and Historic Stock Prices