With this case, we review the liquidity of several restaurant companies. The restaurant companies reviewed and the year-end dates are as follows:

1. Yum Brands, Inc. (December 27, 2008; December 29, 2007)

‘‘Through the five concepts of KFC, Pizza Hut, Taco Bell, LJS and Arco (the ‘‘Concepts''), the company develops, operates, franchises and licenses a world system of restaurants which prepare, package and sell a menu of competitively priced food items.'' 10-K

2. Panera Bread (December 30, 2008; December 25, 2007)

‘‘As of December 30, 2008, Panera operated directly and through franchise agreements with 39 franchise groups and 1,252 cafes.'' 10-K

3. Starbucks (September 28, 2008; September 30, 2007)

‘‘Starbucks Corporation was formed in 1985 and today is the world's leading roaster and retailer of specialty coffee.'' 10-K

Required
a. For each company, indicate the trend in liquidity.
b. Give your opinion as to the relative liquidity of each of these companies. How would you rank these companies, consideringliquidity?

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Yum Brands, Inc. 2007 .72 Panera Bread Starbucks 2008 1.21 .81 Data Reviewed 2008 2007 2008 2007 Current ratio Acid test .35 26 1.19 .91 .80 .30 79 34 49