Comparison of Wendys International, Inc. and Starbucks Corporation Bas

Comparison of Wendys International, Inc. and Starbucks Corpo ration Based on FinancesWendys International, Inc., incorporated in 1969, is primarily engaged in the product line of operating, developing and franchising a system of quick-service and fast-casual restaurants. As of December 28, 2003, there were 6,481 Wendys restaurants (Wendys) in operation in the get together States and in 21 other(a) countries and territories. Of these restaurants, 1,465 were operated by the caller and 5,016 by its franchisees. As of December 28, 2003, the Company and its franchisees operated 2,527 Tim Hortons (Hortons) restaurants with 2,343 restaurants in Canada and 184 restaurants in the United StatesSmart money, 2004. Starbucks Corporation purchases and roasts whole bean coffees and sells them. As of September 28, 2003 ( financial year-end 2003), Starbucks operated a total of 4,546 retail stores. Starbucks sells coffee and tea products through other channels, and, through certain of its equity i nvestees. The Company has two operating segments, United States and International, each of which include Company-operated retail stores and Specialty Operations. Starbucks opened 602 new Company-operated stores during fiscal 2003. As of fiscal year-end, Starbucks had 3,779 Company-operated stores in the United States, 373 in the United Kingdom, 316 in Canada, 40 in Australia and 38 in Thailand. Smart money, 2004In this financial digest report, I will compare and contrast these two companies finance found on their annual report and related websites. There are quaternion parts in this report. It includes Financial Ratios, WACC, Working Capital and Dividend policy. Part equalize and Contrast of the Financial RatiosProfitability RatiosThe Retails-Eating Places industry is a very agonistical area for companies to survive. Both Starbucks and Wendys are excellent companies to earn a lot of profit in this industry. Return on sales (ROS) Harrington (2004) utter that this ratio indicate s that what percentage of each dollar of revenue is available for the owners after(prenominal) all the expenses are paid to other suppliers. This ratio is related to net income and net sales which I found from the income statements of both Starbucks and Wendys in their annual reports. The return on sales is the key profitability ratio. This ratio tells the analyst what proportion of the revenues ... ...urchasing the companys own shares, acquiring new companies and profitable assets, and reinvesting in financial assets (McClure, 2004). BibliographyHarrington, D. (2004) Corporate Financial Analysis. 7th ed. Ohio, South-Western.Hoovers Company Records (2004) database Internet Available from http//ezproxy.mala.bc.ca2051/pqdweb?RQT=573&TS=1098648711&clientId=7024&LASTSRCHMODE=2 Accessed 18 Oct 2004Mergent Online (2004) database Internet Available from http//ezproxy.mala.bc.ca2129/compsearch.asp Accessed 12 Oct 2004Reuters website (2004) Investing Internet Available from Accessed 15 Oct 2004 Ross, S.A., Westerfield, R.W., Jaffe, J.F., & Roberts, G.S (2001) Corporate Finance. 3 th ed.Toronto, McGraw-Hill Ryerson.Seiler. M, (1996) Adverse selection in slap-up budgeting decision making. Management Research News, 19(8), pp.61-67Smart Money website (2004) Internet Available from http//smartmoney.com/ Accessed 15 Oct 2004Wendys International, Inc. website (2004) Internet Available from Accessed 13 Oct 2004Yahoo Finance website (2004) Internet Available from Accessed 12 Oct 2004