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RenB
Joined: 13 Jul 2022
Last visit: 30 Apr 2026
Posts: 388
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Location: India
Concentration: Finance, Nonprofit
Schools: Stanford '26 Wharton '26 (D) Booth '26 (D) Yale '26 (D) CBS '26 (A$$$) Darden '26 (WL) HBS '26 (D) Ross '26 (A$$$$) LBS '26 (D) Tuck '26 (A$$) Kellogg '26 (A)
GMAT Focus 1: 715 Q90 V84 DI82 
GPA: 3.74
WE:Corporate Finance (Consulting)
Schools: Stanford '26 Wharton '26 (D) Booth '26 (D) Yale '26 (D) CBS '26 (A$$$) Darden '26 (WL) HBS '26 (D) Ross '26 (A$$$$) LBS '26 (D) Tuck '26 (A$$) Kellogg '26 (A)
GMAT Focus 1: 715 Q90 V84 DI82
Posts: 388
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19 Sep 2023, 02:36
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
80% (03:42) correct
20%
(01:49)
wrong
based on 5
sessions
History
Date
Time
Result
Not Attempted Yet
Five years ago, McDonald's made a big mistake by selling off its Chipotle stake to refocus on its core products. Today Chipotle has a market cap of $9 billion (10 percent that of McDonald's) and the revenue growth it generated during these five years would have more than doubled McDonald's total revenue growth.
If the information given above is true, which of the following must be true?
A. If the ratio of revenue to market cap for McDonald's has remained equal to that of Chipotle in the last five years, then the percentage increase in Chipotle's revenue has been significantly more than that of McDonald's
B. Chipotle's current revenues must be less than the current revenues of McDonald's.
C. If market cap is directly proportional to the revenue of a company, then Chipotle must have more than doubled its market cap in the last five years.
D. The ratio of revenue to market cap for McDonald's is significantly lower than that for Chipotle.
E. If both Chipotle and McDonald's continue to grow at the same pace, then Chipotle will have greater revenues than McDonald's within the next 10 years.
If the information given above is true, which of the following must be true?
A. If the ratio of revenue to market cap for McDonald's has remained equal to that of Chipotle in the last five years, then the percentage increase in Chipotle's revenue has been significantly more than that of McDonald's
B. Chipotle's current revenues must be less than the current revenues of McDonald's.
C. If market cap is directly proportional to the revenue of a company, then Chipotle must have more than doubled its market cap in the last five years.
D. The ratio of revenue to market cap for McDonald's is significantly lower than that for Chipotle.
E. If both Chipotle and McDonald's continue to grow at the same pace, then Chipotle will have greater revenues than McDonald's within the next 10 years.
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Where to now? Join ongoing discussions on thousands of quality questions in our Critical Reasoning (CR) Forum
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19 Sep 2023, 04:10
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Please explain the conclusion of the question and how is the answer A
19 Sep 2023, 04:39
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RenB
Please search before posting: https://gmatclub.com/forum/five-years-a ... 50275.html Thank you!
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Where to now? Join ongoing discussions on thousands of quality questions in our Critical Reasoning (CR) Forum
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
