just need questions answered on A. and B. if theres confusing on something please put why

Please read and refer to Case \#28, "McDonald's in 2019." Complete the following exercises as detailed below and submit for a grade: A. Calculate and explain the meaning of the following ratios for McDonald's (Case 28). Each of the ratios should be calculated for the years 2016-2018. - Profit Margin - Current Ratio B. The Company's stock closed on Friday, February 24, 2023 at $263.68, according to Yahoo Finance, which alsc reported a price/earnings ratio of 31.65 . What does this price/earnings ratio communicate to the financial markets, investors and other market observers?. CASE 28 McDONALD'S IN 2019* On November 3, 2019, the McDonald's board of directors experiences for our customers," former CEO Steve dismissed Steve Easterbrook over violations of company Easterbrook said in a statement.? policy regarding a relationship with an employee and McDonald's has been trying to attract more customers named Chris Kempezinski the new CEO. Kempczinski had to its restaurants by offering more customized products that experience at Kraft Foods and PepsiCo prior to joining are also healthier. It has removed high fructose corn syrup McDonald's in 2015, most reeently as president of the USA from its buns, changed from the use of liquid margarine to business unit.' real butter, decided to use chicken that has been raised In March 2019. McDonald's, the largest restaurant without antibiotics, and to make use of cage-free eggs. Mike chain, announced it will acquire artificial-intelligence Andres, former president of MeDonald's USA explained startup Dynamic Yield, a company focused on personaliza. why the firm has decided to make these changes: "Why take tion and decision logic technology. Access to this technol- a position to defend them if consumers are saying they ogy will allow the firm to update instantaneously its don't want them?"3 drivethrough menus based on factors such as time of day. These changes are expected to address some of chalweather, and trending menu items. McDonald's plans to lenges that McDonald's has been facing in many markets, roll out the updated drive-through menus across the United including in the United States, where it has almost 15,000 States during the year. "With this acquisition, we're expand- of its 38,000 mostly franchised restaurants. It has lost a lot ing both our ability to increase the role technology and data of ground with consumers, especially millennials, who are will play in our future and the speed with which well able defecting to traditional competitors like Burger King and to implement our vision of creating more personalized Wendy's as well as to new designer burger outlets such as Five Guys and Shake Shack. Changing tastes are also responsible for the loss of customers that are lining up at fast. "Cae prepured by Jamal Shamsi. Michien Stat tiniwesity, whin the casual chains such as Chipotle Mexican Grill and Panera Copright 02019 lamal Slansse and Alin B. Einer. ents (see Exhibits 1 to 4). EXHIBIT 1 Income Statement (5 millions) Source: Antaad Jeport of Alt Donald s Carperatian, 204. ExHibit 2 Balance Sheet (s millions) Sources: Aanuel Meport. McDoald's Ceepoctioe. 20ts. Ansual Fepont. McDonulys Catporation. soly EXHIBIT 4 U.S. Customer Satisfection index for Selected Cheim Over the yeark. McDonald's response to this growine San Bernardino, California to become one of the largest competition was to expand its menu with shacks, saladk. chain of cutlets spetad around the globe. But it gradually and new drinks. From 33 tasic itens that the chain offered bepan to nue into various peoblems that bepen to slow down in 1990 . the menu bad grown by 2014 to 121 items. The its sales rrowth (see Exhibit 5). greatly expanded menu led to a significant increase in costs . This declioe coeld be attributed in larpe part to a drop in and longer preparation timek. This forced the firns to in- MeDonals's encevaunted service and esality since its ev. crease the prices of many of its inems and to take more time pussion in the 1990s, when beadquarters stopped arading: to serve custoeners, moving it away from the attributes that fraschises for cleanlineas, speed, and service. By the end of it had buitt its reputation upon. -McDonald's stands for the decade, the chain ran into more problems beeause of the value, consistency, and comenience," aid Darren Tristano. tighter labor market. MeDoeald's began to cut back on a restaurant industry consultant," training as it strupzled hard to find new recruits, leading to A The fas food chain has been through a similur crisis be- dramatic fallodr in the skills of its enployees. According to a fore. Back in 2002 and 2003. McDonuld's had eaperienced 2002 survey by market researcher Gtobal Gruwth Group. a decline in performance because of quality problems as McDonulds came in third in average service time behind mesult of rapid expanion. At that time, the firm had brought Wredy'rasd andwieh shop Chick fil A lac. James R. Cantalupo back out of retirement to turn things By the beginning of 2003 , consumer surveys were indiaround. He formalated a "Ihan to Win," which has been the cating that MeDonald's was headed for serious trouble. basis of McDonald's strategy over the last decade. The core Measures for the service and quality of the chain were conof the plan was to increase sales at existing locations by tineing to fall, dropping far behind those of it rivals. In impeoving the menu, refurbishing the cutlets, and extendine onder to deal with its deteriorating performance, the firm hours. This time, however, such incremental steps mieht decided to bring buck retired vice-chairman James R. not be enough. Cantalupa. 59, who had overseen MeDonald's successful international expunsion in the 19805 and 1990s. Cantalupo. Pulling out of a Downward Spiral Since it was founded more than 50 years apo. McDonald's ono had netircd only a year earlier, was perceived to be the has been defining the fast food business. It peowided mil-. shareholder sentimeat foe an outsiler. The board had felt Gions of Americans their first jobs even as it changed their that it needed someone who knew the company well and eating habits. It rose from a single outlet in a nondescript. coold nyve gaickly to tum things around