(PDF) Advanced Financial Accounting
Added on 2021-04-24
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Running head: ADVANCE FINANCIAL ACCOUNTING Advance Financial AccountingName of the StudentName of the UniversityAuthors NoteCourse ID
ADVANCE FINANCIAL ACCOUNTING1Table of ContentsIntroduction:...............................................................................................................................2Compare and Contrast of Financial Analysis:...........................................................................2KFC New Zealand:....................................................................................................................3KFC Australia:...........................................................................................................................4Pizza Hut New Zealand:.............................................................................................................5Starbucks Coffee New Zealand:.................................................................................................6Carl’s Jr New Zealand:...............................................................................................................7Conclusion:................................................................................................................................8Reference List:...........................................................................................................................9
ADVANCE FINANCIAL ACCOUNTING2Introduction: The current study is based on analysis of the financial performance of each of the fiveoperating New Zealand segments. This includes KFC, Pizza Hut, Starbucks Coffee, Carl’s Jrand KFC Australia. The NZ IFRS 8 specifies the method through which an organization mustreport the information regarding its operating segments (Loftus et al., 2017). The analysiswill be carried out in terms of International Financial Reporting Standard 8 for thedisclosure of the financial information regarding an entity’s operating segments. Compare and Contrast of Financial Analysis: The previous year has witnessed a noteworthy change for the restaurant brands fromchiefly a home emphasis brand to a global brand. The company has reported a profitablefinancial year with net profit after tax standing $26 million, a rise of 7.8% on the previousyear income of $24.1 million (www.restaurantbrands.co.nz, 2018). The year-end stores stood212 with New Zealand stores totalling 170 stores with KFC Australia bringing 42 stores intothe network. The segment performance in the areas of gross margin for Starbucks coffee stoodbetter as the company reported a higher gross margin of than the other brands. On the otherhand, the return on assets for the for the pizza hut in comparison to its peers stood strong(www.restaurantbrands.co.nz, 2018). The return on assets for the Carlsberg stood relativelylower. The comparative analysis provides that sales revenue for the KFC group stoodrelatively strong as the over the period of five years the company reported higher proportionof sales. On the other hand, Pizza hut reported a better and stable sales performance of over theperiod of five years as the sales trend stood relatively stable. Gauging into the EBITDA foreach segment, the performance of KFC stood strong during the last five years (Loftus et al.,
ADVANCE FINANCIAL ACCOUNTING32017). The EBITDA for KFC over the period represented a rising trend whereas Pizzareported a relatively declining trend. EBITDA of Starbucks though remain stable however theperformance of Carlsberg stood comparatively low from rest of the brands. 20162017050100150200250300350097.244.940.526.826.733.436.3282.5296.5Segment SalesKFC AustraliaPizza HutStarbucks CoffeeCarl's JrKFC New Zealand Figure 1: Segment Sales performance(Source: As Created by Author)KFCPizza HutStarbucks CoffeeCarl's Jr02040608010012014057.84.94.40.461.44.14.81EBITDA20162017Figure 2: Figure representing EBITDA
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