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

1. Yum Brands, Inc.

(December 30, 2008; December 30, 2007)

‘‘Through the five concepts of KFC, Pizza Hut, Taco Bell, LJS and A & W (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 and through franchise agreements with 39 franchisee groups, 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. Comment on the net profit margin for these companies. Consider absolute amounts and trend.
b. Comment on the return on assets for these companies. Consider absolute amounts and trend.
c. Comment on the return on total equity for these companies. Consider absolute amounts and trend.
d. Comment on the relative profitability of thesecompanies.

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Yum Brands, Inc. Panera Bread Starbucks Ratio 2008 2007 2008 2007 2008 2007 Net profit margin % Return on assets % Return on total equity % 8.55 14.06 187.00 8.73 13.41 70.17 5.31 10.05 14.33 5.35 9.19 13.62 1.94 5.73 13.21 6.00 13.76 29.81