Determine the return on investment for each segment

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Problem - Analyze Papa John's International, Inc. - Papa John's International, Inc. (PZZA), operates over 5,000 restaurants in the United States and 45 countries. The company operates primarily as a franchisor with 4,353 franchised restaurants and 744 company-operated restaurants. Recent data (in millions) for the company-operated and North America franchised restaurants are as follows:

 

Restaurants

 

Company-Operated

North America Franchised

Sales

$816

$103

Operating income

75

92

Invested assets

225

10

Required -

a. Determine the profit margin for each segment. Round to one decimal place.

b. Determine the investment turnover for each segment. Round to two decimal places.

c. Use the DuPont formula to determine the return on investment for each segment. Round to one decimal place.

d. Analyze and interpret the results of (a), (b), and (c).

Reference no: EM132766577

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