Case Study Of Eat At My Restaurant

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As investors it is important to understand the company in which you are looking at. One of the most common mistakes made is people only see the current trends of the company and do not research previous years. In doing this they are not getting the true picture of the company and it is important to understand the cash flows of the company in and out. In order to do that one should look at the statement of cash flows, as it will provide information as to where the company spends its money. This assignment will be looking at “Eat at My Restaurant,” which is a case study that compares three different well-known companies. The companies in which we will look at are Panera Bread, Starbucks, and Yum Brands, Inc. Panera Bread Starbucks Yum Breads, Inc. Data Reviewed 2010 2009 2010 2009 2010 2009 Net Cash provided by operating activities $1,968,000,000 $1,404,000,000 $237,634,000 $214,904,000 $1,704,900,000 $1,389,000,000 Net Income- including noncontrolling interest $1,178,000,000 $1,083,000,000 $111,599,000 $86,851,000 $948,300,000 $391,500,000 Operating cash flow/current maturities of long-term debt and current notes payable 2.92 23.80 No current long-term debt and current notes payable No current long-term debt and current notes payable No current long-term debt and current notes payable No current long-term debt and current notes payable Operating cash flow/total debt 30.57% 23.27% 72.23% 89.50% 63.06% 55.12% Operating cash flow per share $4.05 $2.91 $7.68 $6.94 $2.23 $1.86 Operating cash flow/cash dividends 4.78 3.88 No Dividends No Dividends 9.97 No Dividends Next we will look at each company’s information one and one and review the data that is given above. The first company in which will be reviewed is a café company called... ... middle of paper ... ...essment. Based off the information that was given in the case study it seems to be the company that could potentially have a cash flow issue is Yum Brands, Inc. That is due to them having the lowest operating cash flow/current liabilities, which a major difference between they years. Yum Brands, Inc. also had the lowest ratio in cash flow/total debt out of the three companies. In wrapping all this up the statement of cash flow is one of the best ways to evaluate a companies flow of cash. This statement allows people to look at various areas and can be known as the heartbeat of the company. Reference Assignments: Week 5. (n.d.). Colorado State University Global Campus. Retrieved January 26, 2014, from https://csuglobal.blackboard.com/webapps/portal/frameset.jsp?url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_112330_1%26url%3D

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