McDonalds Vs. Wendy's and do the paper comparing those two companies instead of Dick's and Academy Sports.

Student’s Name
Professor’s Name
Course/ Class Name
Date
McDonald’s vs. The Wendy’s
Recommendation to Board
McDonald’s Company is one of the giant multinational operators that supply fast foods. The Company has been registering great performance over the last four years. It reported a net profit of USD 6,025,400,000, which was approximately 28.6% of the Company's sales (Finance.yahoo.com). However, the performance is lower compared to the performance growth of the Company from 2016 to 2018. The Company reported an increase of 10% of the net profits from 2016 to 2017. The profits also expanded by 14% from 2017 to 2018 (corporate.mcdonalds.com). The growth decreased in the year 2019 as compared to the previous years’ performance. The net income increased by an approximate of 1.07%. The Company has also been accumulating high levels of debt with a higher amount of liabilities as compared to its assets (Stowell et al., 18). The Company should consider making the following strategies to ensure great performance.
The Company should consider effective management of the inventory. The inventory management system is significant in ensuring that there is a smooth flow of raw materials to the final production of goods (Thind, 22). When the inventory is sluggish, the rate of production will be lower hence reducing the amount of sales revenue. As a multinational operator and a fast-growing company in operations, the Company is typically at risk of mismanagement of the work-in-process. The work-in-process is the portion of inventory that is in the production process but due for completion. When there is mismanagement of WIP, the cost of operations will increase in terms of transportation, warehousing, and additional requirement of labor (Thind, 23). Proper management of the inventory will, therefore, ensure low expenses hence increasing the level of profits.
The Company should develop effective strategies that will ensure optimum control of the company finances. This includes maximizing on the available free cash for running the company operations (Rodrigues et al., 53). The Company should also minimize short-term credit facilities to ensure low-interest costs associated with the loan facilities. Based on the Company's balance sheet, the Company has a high level of liabilities compared to the value of the assets. The assets have a value of USD 47,510,800,000 while the liabilities are at a value of USD 55,721,100,000 (Finance.yahoo). This data reveals the extent of the Company's reliance on debt for the running of its operations. The portion contributing to the liabilities of the Company from the long-term debt is USD 34,118,100,000. The high levels of liabilities put the shareholders at a risk of gaining losses in terms of equity. This information shows that the Company is not maximizing the shareholders' investment.
The company sales have also dropped significantly as compared to the 2016 sales. The 2019 sales have a value of USD 21,076,500,000 while the 2016 sales amounted to 24,621,900,000, indicating a drop of approximately 14.40% (mcdonaldscorporation.gcs-web.com). This drop in sales should be a major concern for the management team. The board should consider the following measures to cou...