You are a data analyst at Chipotle and the Nasdaq headline, $$Why Are Chipotle Shares Sinking After Strong Earnings$$ has caused a lot of concern within the company. Investors are worried about their investments. Chipotle$$s executives would like to understand if their competition also experienced a similar effect. The manager of data analytics prepares a data visualization dashboard using data from income statements and historic stock prices to explain to executives how earnings and stock prices compare with Chipotle$$s competitor, McDonald$$s$.$ The manager has asked you to analyze that data and prepare your findings for a presentation to the board.

Chipotle vs McDonalds Earnings Dashboard

Figure $1$: Earnings Per Share vs Earnings Figure $2$: Earnings Per Share vs Earnings

GFigure $1$: Earnings Per Share vs Earnings Growth $-$ Chipotle

Measure Names

$18.$

$3\mathrm{.}5$

EPS

EPS Growth

$16..$

$3\mathrm{.}0$

$14..$

$2\mathrm{.}5$

$12..$

$2\mathrm{.}0$

$10$Figure $2$: Earnings Per Share vs Earnings Growth $-$ McDonalds

Legend

EPS

EPS Growth

$2\mathrm{.}0$

$14\%$

$12\%$

$1\mathrm{.}5$

$10\%$

$8\%$

$1\mathrm{.}0$

$6\%$

$0\mathrm{.}5$

$4\%$

$2\%$

$0.$Figure $5$: Stock Price $-$ Chipotle

$2018$

$2019$

$03$

$04$

Q$1$

Q$2$

Q$3$

Q$4$

$900$

$850-$

$800-$

$750-$

$700-$

$650-$

Avg. Close in $

$600-$

$550-$

$500-$

$450-$Company

McDonalds Corp.

Figure $6$: Stock Price $-$ McDonalds

$2018$

$2019$

Q$3$

Q$4$

Q$1$

Q$2$

Q$3$

Q$4$

$200-$

Avg. Close in $

$150-$

Dashboard EFigure $3$: Sales Revenue vs Gross Income $-$ Chipotle

$2018$ Q$3201804201901$

$1500$M

Legend

Sales$/$Revenue

Gross Income

$2019$ Q$2$

$20$Line

Figure $4$: Sales Revenue vs Gross Income $-$ McDonalds

$2018$ Q$32018$ Q$42019$ Q$12019$ Q$2$

Sales$/$Revenue

Gross Income

$2019$ Q$3$Part A $-$ How would you summarize the earnings dashboard findings to your manager? How would you explain why earning per share increased but the stock price dropped?

Part B $-$ Is there are correlation between the earnings per share and the stock price for Chipotle?

Part C $-$ Is there are correlation between the earnings per share and the stock price for McDonald$$s$?$

Part D $-$ Explain the concept of $$quality of earnings$?$ Based on the data in the earnings dashboard, is there any evidence that Chipotle$$s quality of earnings affected its share price in $2019$ Q$4.$

Part E $-$ Are there similarities with Chipotle$$s and McDonald$$s stock price trend? What factors could be attributed to the trend?