Macroeconomic Analysis

Paper Summary:

This paper presents a macroeconomic analysis of the first quarter of the year 2003. It looks at the American government's fiscal policy and business cycle before moving on to present a restaurant industry analysis, focusing on a comparison between McDonald's and Wendy's. The paper then performs an analysis of two clothing companies - Gap and American Eagle Outfitters - and compares the two. The paper includes graphs.

From the Paper:

"The Wendy's corporation does not sell food or supplies to its franchisees. Instead, the Company makes volume purchases of many of these products. The current purchasing measures allow independent distributors to purchase certain products directly from suppliers. Similar to the McDonald's Corporation, Wendy's must approve the suppliers. The suppliers are then allowed to store and sell to the franchises and the company owned restaurants. ("Wendy's International (NYSE) - Business Description") The company believes that the structure of this supply chain aids in assuring quantity discounts, and product availability. Multex Investor explains, "These advantages are available both to the Company and to any franchisee that chooses to participate in the distribution program." ("Wendy's International (NYSE) - Business Description")"

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