Trend Analysis: Mcdonald's Corporation Balance Sheet And Income Statement

The Trend analysis by definition is the trend between the different results on the financial statement of any given company to show the financial road map of which the entity moves. The analysis explains the amount and to what percentage does one specified area alters to another; more commonly quarterly or annually. In this trend analysis the trend will highlight a pattern of number and their annual alteration reflected on McDonald’s Corporation Balance sheet and Income Statement over the last four years. Over the last four years the McDonalds income statements have been showing an array of fluctuations on its: revenues, operating income, net income, and its earnings per share. The revenues; more specifically, sales from corporate operations
Income from all areas of operation of the franchise (leasing) segment yielded a positive return from the additional attention directed by the company. If you recall in 2014, the company projected intentions of developing the franchise section of the company because it saw the potential to raise Revenue. The vision yielded a 5% increase from the previous year and from the projections looks as if it may continue. Similarly to the 2016 sales revenue the 2017 sales revenue also yielded positive numbers from the annual operates of the cumulative franchises. There was nearly a 1% increase in the 2016 revenue returns from the base year 2014 and 2017 added to that promising numbers for the future. The 2017 income statement reflected an 829 million or 9% increase from base year 2014, an amazing 8% increase from the previous year. The 2017 10k reports show McDonalds following up on the 2015 intentions of developing the franchise which can be partially held accountable for the positive increase in revenue. McDonalds stated in the 2018 SEC 10 k report that about 900 restaurants were opened; including those in the developmental licensee and joined markets. These additional stores, though they generate added expenses, provided the necessary revenue McDonalds need to project growth on the income statement. The total revenue in 2015 compared to the base year 2014 revealed a decline of 9% or $2.240 billion in revenues
Even though these numbers reflect a negative outcome from the previous year the company was still had a substantial competitive advantage on the market industry. Because of size and volume McDonald's was still able to produce significantly lower meals than any of its competitors without going bankrupt. Of course, the fact that the corporation owned about 70% of the land and a surprising 40% of the buildings of which they conducted business; McDonalds will still show income from the real estate when franchisees had a bad year. It seems as though the 2014 into 2015 fiscal year was just the year of decline as the operating in also yielded