Analysis on Burger King Worldwide Inc
Analysis on Burger King Worldwide Inc. (BKW)
Burger King (BKW) is the second largest fast food hamburger chain in the world which was founded in 1954; it operates in over 12,600 locations serving over 11 million customers daily in 83 countries and territories worldwide. About 95 percent of Burger King Restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. This company became a publically traded company in this year June 20 2012. Therefore, only current year data will be presented in this report.
Price-Earnings ratio
In general, a high Price Earnings Ratio recommends that investors expect higher earnings growth in the future relative to companies with a lower P/E. This multiple is useful to compare the P/E ratios of one company to other companies in the same sector. As presented by the P/E ratio graph above, P/E ratio of BKW is higher than average relative corporations which are 23.6812 and 19.73, respectively. The company has a greater P/E than the industry average; this implies that the market is expecting significant events over the years or less than years. The company could not maintain the same growth over the year; it could be fluctuated by revenues and earnings. Better to reduce the P/E ratio and be a high growth solidified company.
Analysis on Profitability ratios Profitability ratios measure a company’s financial performance and its capability to raise its shareholders value and generate profits. It measures how much out of every dollar of sales a company actually keeps in earnings. There are four measurements to be presented in this report; which are, return on assets, return on equity, return on invested capital, and profit margin. Return of asset profitability measures the company’s ability to generate profits before leverage with its own assets. According to the table below, Return of asset of BKW is 1.56 percent which is lowest value in the industry. Average
Burger King (BKW) is the second largest fast food hamburger chain in the world which was founded in 1954; it operates in over 12,600 locations serving over 11 million customers daily in 83 countries and territories worldwide. About 95 percent of Burger King Restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. This company became a publically traded company in this year June 20 2012. Therefore, only current year data will be presented in this report.
Price-Earnings ratio
In general, a high Price Earnings Ratio recommends that investors expect higher earnings growth in the future relative to companies with a lower P/E. This multiple is useful to compare the P/E ratios of one company to other companies in the same sector. As presented by the P/E ratio graph above, P/E ratio of BKW is higher than average relative corporations which are 23.6812 and 19.73, respectively. The company has a greater P/E than the industry average; this implies that the market is expecting significant events over the years or less than years. The company could not maintain the same growth over the year; it could be fluctuated by revenues and earnings. Better to reduce the P/E ratio and be a high growth solidified company.
Analysis on Profitability ratios Profitability ratios measure a company’s financial performance and its capability to raise its shareholders value and generate profits. It measures how much out of every dollar of sales a company actually keeps in earnings. There are four measurements to be presented in this report; which are, return on assets, return on equity, return on invested capital, and profit margin. Return of asset profitability measures the company’s ability to generate profits before leverage with its own assets. According to the table below, Return of asset of BKW is 1.56 percent which is lowest value in the industry. Average