Question: Listed below are two profitability, one efficiency and one market ratio for four actual companies measured using fiscal year-end numbers for 2021. The Price/Earnings numbers

Listed below are two profitability, one efficiency and one market ratio for four actual companies measured using fiscal year-end numbers for 2021.  The Price/Earnings numbers are from July 2022.

 

CriteriaChipotleMcDonaldsStarbucks            Yum
Return on Sales 8.8%29.9%      27.7%  24.8%
Return on Invested Capital12.5%15.3%         21.1%     

38.4%

Capital Turnover1.2 turns0.5 turns  1.1 turns1.2 turns
Price to Earnings54 times27 times  21 times21 times 

 

Strategy and qualitative information about each of the companies is provided below.  This information is taken from each company's 2019 annual report. Additional and more current information about each company can be obtained by visiting the investor relations websites for each company (or the main company website).

 

 

After reviewing the financial ratios and the qualitative information in the document attached above please pick one of the four companies above and discuss why you believe it to be the best investment. In your discussion please reference at least two of the ratios as justification and at least two qualitative variables.

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