Purpose:

This report synthesizes your previously submitted ones into a cohesive and comprehensive report on a selected company and its primary competitor. $($selected company $=$MCDONALDS and competitor $=$ chipotle $)$ The goal is to integrate insights from ratio analysis, portfolio evaluation, and stock valuation to present a well$-$rounded analysis $.$

Make sure in this report to ONLY analyze the numbers from the excel sheets provided $($ all $3$ assignments $)$

Report Outline

$1.$ Executive Summary:

o Provide a brief overview of the selected company and its competitor.

o Highlight the purpose of the report and key findings in $3-4$ sentences. $2.$ Introduction:

o Introduce the company and competitor, their industries, and their roles in the market.

o Explain the rationale for choosing these companies for comparison. $3.$ Section $1$: Ratio Analysis

o Present and interpret key financial ratios for the company and its competitor.

o Use charts or tables to summarize and compare the ratios.

o Discuss how the company performs relative to the competitor, and analyze the implications for stakeholders.

$4.$ Section $2$: Portfolio Analysis

o Summarize the construction of a portfolio including the company and its

competitor. o Include:

$$ Expected Portfolio Return and Required Rate of Return.

$$ Portfolio Risk.

$$ Diversification Benefits: Analyze the correlation between the stocks and its effect on risk.

o Conclude whether the portfolio provides adequate risk$-$adjusted returns and diversification.

$5.$ Section $3$: Stock Valuation

o Summarize the valuation methods used:

$$ P$/$E Ratio: Compare relative valuation of the two companies against the industry average.

$$ Dividend Discount Model $($if applicable$)$: Assess intrinsic value based on the dividends.

o Recommend whether to buy, hold, or sell shares of the company and competitor based on valuation outcomes.

$6.$ Conclusion:

o Summarize the overall performance of the company relative to its competitor. o Discuss implications for investors and other stakeholders.

Submission Requirements:

$*$ Length: $8-10$ pages $($excluding charts and appendices$).$

$*$ Formatting: APA style, $12-$point Times New Roman font, double$-$spaced.

$*$ References: Include all sources used $($annual reports, market databases, etc.$).$