Vs.

Tengiz
Giovanni
Markus
● Past performance based on ratios?
- Based on the ratios given it seems that McDonalds overall has a higher efficiency than Burger King taking into account the profitability
ratios, such as generating profits using their stakeholders investments, capital, and assets.
- ROE is high (191.93) on McDonald’s which could mean they incur a big amount of leverage, it is necessary to assess other
financial ratios to see the full picture.
- With Margins, we see that McDonalds has been better at generating revenue vs. their production costs during (2015-2021).
- This could be because of a better pricing strategy or a better way of controlling their costs.
- The high ratios can translate to a healthy profitable company that generates profit for stakeholders through their operational
activities.

● What kind of decisions are needed in what company?

- Burger King needs to decide whether to research a better pricing strategy or invest into their restaurants equipments to achieve a more
efficient operational process that will guarantee a better cost control.
- Demand for Burger King is not a problem for the company, but not controlling costs will eat into the profits they could generate.

● What could be done differently and in what company?

- Burger King needs to utilities their equity and return on investments at a more efficient way to generate higher profits.
- As seen in ratio performance Burger King has an increased return in equity % which mean the company is starting to
efficiently benefit from shareholders equity.
Vs.
● Past performance based on ratios?
- Profitability ratios shows a big hit on both companies due to the COVID pandemic with Expedia taking a bigger hit than Bookings. This may
be due to a poor delegation and use of their total assets, this is more evident when comparing the numbers in 2021.
- ROA, ROE, and RIC all remained negatives in 2021 for Expedia which translates to a loss due to less demand for their services.
- Booking numbers on the same ratio shades a light on how efficient the management where at maintaining profitability on a difficult
situation.
- With Margins, we see that Booking where much more efficient at generating revenue from operational activities in the years (2015-2019)
- Booking has maintain a high level of operational margins throughout the years which help them brace for the COVID impact.
- Expedia has been posting low margins which means they are not controlling production costs in the company.

● What kind of decisions are needed in what company?

- Expedia needs to hire a new management team that will handle assets, stakeholder’s equity, and capital in a more efficient way despite the
difficult times that the company finds itself in.
- This is needed to manage and reserve their capital to be better prepared for crises and other factors which could hurt the travel
sector.

● What could be done differently and in what company?

- (Expedia), Develop a new strategy that will capture the upcoming increase in demand for traveling. This could range from investing on a
marketing campaign, or to focusing on new price strategies that will make the company more attractive.
- This could be done by making new means of payments, and adding a more lucrative travel scoring cards.