Financial Analysis Report on Yum! Brands, Panera Bread and Starbucks

This report presents a comparative financial analysis of Yum! Brands, Panera Bread, and Starbucks, examining their financial statements and 10K filings. The analysis highlights the financial health of each company, noting Yum! Brands' significant deficit in shareholders' funds and debt, while Panera Bread and Starbucks exhibit positive equity and strong balance sheets. The report also discusses the inventory recognition systems used by the companies, stating that inventory is recognized at the lower of cost or net realizable value. Furthermore, it points out the absence of stock in Yum! Brands' balance sheet and the presence of inventory reserves in Starbucks' balance sheet. The report is based on data from 2015 and 2018 and references the respective 10K filings of the companies.

On perusal of the financial statements and 10K filing of the chosen three companies i.e. Yum!
Brands, Inc., Panera Bread and Starbucks, it has been given to understand that the financials of Yum!
Brands, Inc. is very weak with a huge deficit in shareholders’ funds and a filing debt to be taken care
off.
Panera Bread has recently become private and annual report of the company is not available in the
public domain. Accordingly, the last 10K filing was obtained for 29-12-2015 and the result shows a
positive ownership equity which is a good sign of health of company. Also, similar results have been
observed for Starbucks with a high very balance in the Equity Section. The snapshots of the
financials is presented as under:
Date Sl. No Name of the Company Total Asset Total Liabilities Owner’s Equity
31-12-2018 1 Yum! Brands, Inc. 4130 12056 -7926
29-12-2015 2 Panera Bread 1475 978 497
01-10-2017 3 Star Bucks 14365.6 8908.6 5457
Inventory
The inventory recognition system of all the three companies are similar which states that inventory
shall be recognised at lower of cost incurred for purchasing the inventory or net realisable value.
Further, the net realisable value is computed by reducing the marketable expenses from the sale
price of the product. (Yum Brands Inc, 2019)
It is also worthwhile to notice that Yum! Brands, Inc. does not have any stocks in its consolidated
balance sheet for the year and Star Bucks had inventory reserves in its balance sheet. (Panera Bread
Company, 2019)
References
Panera Bread Company. (2019, MAy 10). Retrieved from www.sec.gov:
https://www.sec.gov/Archives/edgar/data/724606/000072460616000042/
a2015122910k.htm
Yum Brands Inc. (2019, May 10). Retrieved from ast10k.com:
https://last10k.com/sec-filings/yum/0001041061-19-000010.htm#link_fullReport