Essay on Burger King Summay Analysis
1-Executive Summary Burger King Holdings,inc. was been founded in 1953.Burger King is the world's #2 hamburger chain after Mc Donalds. By the early 2000s Burger King is a little left behind. “years of under-investment left it struggling in its rival's shadow by the early 2000s.” although a lot of consumers agree that it meals taste better than McDonald ones but It doesn't have the excellent perception created the administrative power and the aggressive marketing of his main by concurrent. It was freed in 2002 from Diageo the number one in wine and spirit drinks, which owned it since 1997, after a merger with Guinness. Although owned by Texas Pacific Group for $2.26 billion, it recovered its latitudes of the …show more content…
Liquidity Measures for Burger King don't seem healthy with a current ratio of 0.76, 0.88, 0.93 for 2009, 2008, 2007 and acid-test-ratio 0.52, 0.66 and 0.68. “ As a general rule, a current ratio of 2.0 and an acid-test ratio of 1.0 are considered indicative of adequate liquidity”.The liabilities are bigger than the equity for Burger, which gives a negative working capital. The liquidity availability is a lot better for Wendys with a current ratio of 1.84 and acid-test-ratio of 1.43 in 2009.The Working Capital,Current ratio,acid test ratio varies from double to quadruple in favor of WENDYS.
Activity measures are appreciable for both companies.
The ratios confirm the trend of the common size. The ratios of Burger King show a relatively