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How ___ makes money

You will pick one real company and explain how it makes money. Your audience is a classmate who has never thought about the company before. When they finish, they should be able to explain its business in their own words.

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

What to do

Choose a company from the list below. Check your choice with your teacher.
Read its company card. Find the biggest cost and how much was kept out of each $100.
Open its 10-K. The link is on the card. A 10-K is the yearly report a US public company must file with the SEC. It is free to read on sec.gov.
Read Item 1 (Business). Find what the company sells and who pays it.
Read the headings in Item 1A (Risk Factors). These are the company's own list of things that could affect it. They are not predictions. Pick two to explain.
Write down page numbers. Use the number printed at the bottom of each 10-K page.
Fill in the template on your worksheet.
Check your work with the rubric before you hand it in.

What you will make

You will answer five questions about your company:

What does it sell?
Who pays it?
Where does each $100 go? Use the company card below.
What is one fact from its 10-K? Give the Item and page.
What are two things to watch? Take them from the company's own 10-K. Give the Item and page.

Your teacher will tell you the format: a one-page explainer, a poster, a 3-slide talk or a 60-second video.

The rules

Describe, don't judge. Explain how the business works. Don't tell anyone what to do with the company's shares.
No guessing the future. Things to watch come from the company's own filing, not from you.
No ranking words. Skip words like "greatest," "worst" or "No. 1." Use numbers and facts instead.
Cite everything. Every number and quote needs its source: the filing, the Item and the page.
Hand your work to your teacher only. Cityfort never collects student work.

Which companies can I choose?

Choose one of these 20 companies. Each has a card below.

Company	What it sells	Year on the card
Nike	Athletic shoes, clothing and equipment, made mostly by outside factories	FY2026
Costco	Groceries, household goods and gasoline for paying members, from warehouses	FY2026
Apple	iPhones, Mac computers, iPads, wearables and paid services	FY2026
McDonald's	Rent and royalties from franchisees who run most of its restaurants, plus sales at the ones it runs	FY2025
Chipotle	Burritos, bowls and tacos in restaurants it owns and runs	FY2025
Coca-Cola	Drink concentrates, syrups and finished drinks	FY2025
PepsiCo	Snacks such as Lay's and Doritos, and drinks such as Pepsi and Gatorade	FY2025
Netflix	Monthly subscriptions to series, films, games and live programming, plus ads	FY2025
Walmart	Groceries, general merchandise and health products, in stores and online	FY2026
Disney	Streaming, TV channels, sports, films, theme park visits and cruises	FY2025
Starbucks	Coffee drinks and food through coffeehouses worldwide	FY2026
Target	Food, household goods, clothing and home items, in stores and online	FY2025 (year ended Jan 31, 2026)
Home Depot	Home improvement goods, building materials and appliances for homeowners and contractors	FY2025 (February 2025 to January 2026)
Lowe's	Home improvement goods, appliances and building materials for homeowners and contractors	FY2025 (February 2025 to January 2026)
Procter & Gamble	Household and personal care brands such as Tide, Pampers and Gillette	FY2026
Alphabet	Owner of Google and YouTube; sells ads, cloud computing and subscriptions	FY2025
Meta	Owner of Facebook, Instagram, Messenger and WhatsApp; sells ads to reach their users	FY2025
Airbnb	An online marketplace where hosts offer stays, experiences and services to travelers	FY2025
DoorDash	Delivery apps that connect consumers with local restaurants, stores and couriers	FY2025
T-Mobile	Wireless plans, home internet and phones for US households and businesses	FY2025

The real receipts

Show the 20 company cards

Each card shows where each $100 that came in went, for the year shown. Cityfort worked out each line as the amount ÷ total money in × 100, from the company's filing. Lines are rounded to 10 cents, so they may add to a little more or less than $100.

Where each $100 went: Nike, FY2026

Line	Per $100 that came in
Products sold (cost of sales)	$57.0
Advertising and athlete deals (demand creation)	$10.2
Wages, rent and other overhead	$24.4
Income tax	$1.7
Kept as net income	$6.7
Total	$100.0

Source: Nike's FY2026 Form 10-K, filed Jul 15, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/320187/000032018726000088/nke-20260531.htm.

Where each $100 went: Costco, FY2026

Line	Per $100 that came in
Merchandise costs	$87.0
Running costs	$8.9
Interest and tax	$1.0
Kept as net income	$3.0
Total	$99.9

Source: Costco's FY2026 Form 10-K, filed Oct 7, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/909832/000090983226000093/cost-20260830.htm. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.

Where each $100 went: Apple, FY2026

Line	Per $100 that came in
Cost of products	$45.0
Cost of services	$6.1
Research and development	$9.5
Selling, general and administrative	$6.2
Income tax	$5.6
Kept as net income	$27.5
Total	$99.9

Source: Apple's FY2026 Form 10-K, filed Nov 3, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/320193/000032019326000026/aapl-20260926.htm. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.

Where each $100 went: McDonald's, FY2025

Line	Per $100 that came in
Company-run restaurants (food, paper, pay, occupancy)	$30.7
Selling, general and admin	$11.3
Franchised restaurants' occupancy	$9.7
Other restaurant and operating costs	$2.1
Interest	$5.9
Income tax	$8.7
Kept as net income	$31.7
Total	$100.1

Source: McDonald's FY2025 Form 10-K, filed Feb 24, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/63908/000006390826000035/mcd-20251231.htm. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.

Where each $100 went: Chipotle, FY2025

Line	Per $100 that came in
Food, beverage and packaging	$29.4
Restaurant labor	$24.9
Rent and other restaurant costs	$19.8
Admin, new-restaurant and closure costs	$6.1
Depreciation and amortization	$3.0
Income tax	$3.9
Kept as net income	$12.8
Total	$99.9

Source: Chipotle's FY2025 Form 10-K, filed Feb 4, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/1058090/000105809026000009/cmg-20251231.htm. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.

Where each $100 went: Coca-Cola, FY2025

Line	Per $100 that came in
Cost of goods sold	$35.5
Selling, general and administrative	$28.0
Other operating charges	$2.4
Interest expense	$3.2
Income tax	$5.5
Partners' share in subsidiaries	$0.1
Kept as net income	$25.3
Total	$100.0

Source: Coca-Cola's FY2025 Form 10-K, filed Feb 20, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/21344/000162828026010047/ko-20251231.htm.

Where each $100 went: PepsiCo, FY2025

Line	Per $100 that came in
Cost of sales	$45.9
Selling, general and administrative	$39.8
Brand write-downs	$2.1
Net interest, pension and other	$1.3
Income tax	$2.1
Minority partners' share	$0.1
Kept as net income	$8.8
Total	$100.1

Source: PepsiCo's FY2025 Form 10-K, filed Feb 3, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/77476/000007747626000007/pep-20251227.htm. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.

Where each $100 went: Netflix, FY2025

Line	Per $100 that came in
Content amortization (shows and films)	$36.2
Other cost of revenues	$15.1
Sales and marketing	$7.3
Technology and development	$7.5
General and administrative	$4.2
Interest	$1.7
Income tax	$3.8
Kept as net income	$24.2
Total	$100.0

Source: Netflix's FY2025 Form 10-K, filed Jan 23, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/1065280/000106528026000034/nflx-20251231.htm.

Where each $100 went: Walmart, FY2026

Line	Per $100 that came in
Goods and other cost of sales	$74.9
Operating, selling and admin costs	$20.7
Interest	$0.3
Tax and minority holders' share	$1.1
Kept as net income	$3.1
Total	$100.1

Source: Walmart's FY2026 Form 10-K, filed Mar 13, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/104169/000010416926000055/wmt-20260131.htm. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.

Where each $100 went: Disney, FY2025

Line	Per $100 that came in
Cost of services and products	$62.0
Selling, admin and other	$17.4
Depreciation and amortization	$5.6
Restructuring and impairment	$0.9
Net interest	$1.4
Outside owners' share of profit	$1.1
Income tax benefit, from one-off items (adds)	−$1.5
Kept as net income	$13.1
Total	$100.0

Source: Disney's FY2025 Form 10-K, filed Nov 13, 2025; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/1744489/000174448925000155/dis-20250927.htm.

Where each $100 went: Starbucks, FY2026

Line	Per $100 that came in
Coffeehouse operating expenses	$44.2
Product and distribution costs	$31.5
General, administrative and other	$7.5
Depreciation and amortization	$3.8
Restructuring and impairments	$1.8
Interest	$1.4
Income tax	$3.4
Kept as net income (includes the China gain)	$6.5
Total	$100.1

Source: Starbucks's FY2026 earnings release (Form 8-K, Exhibit 99.1), filed Oct 29, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/829224/000082922426000154/sbux-09272026xearningsrele.htm. This card comes from an earnings release, not a 10-K. For your 10-K fact and things to watch, use Starbucks' Form 10-K for fiscal year 2025 (ended Sep 28, 2025), filed Nov 14, 2025: https://www.sec.gov/Archives/edgar/data/829224/000082922425000114/sbux-20250928.htm. Write the fiscal year next to every fact. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.

Where each $100 went: Target, FY2025

Line	Per $100 that came in
Merchandise cost	$64.8
Supply chain and digital fulfillment	$7.2
Store and head-office costs (SG&A)	$20.5
Depreciation and amortization outside cost of sales	$2.5
Net interest	$0.4
Income taxes	$1.0
Kept as net income	$3.5
Total	$99.9

Source: Target's FY2025 (year ended Jan 31, 2026) Form 10-K, filed Mar 11, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/27419/000002741926000016/tgt-20260131.htm. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.

Where each $100 went: Home Depot, FY2025

Line	Per $100 that came in
Cost of sales	$66.6
Selling, general and administrative (SG&A)	$18.6
Depreciation and amortization outside cost of sales	$2.0
Interest expense	$1.5
Income taxes	$2.7
Kept as net income	$8.6
Total	$100.0

Source: Home Depot's FY2025 (February 2025 to January 2026) Form 10-K, filed Mar 18, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/354950/000162828026019436/hd-20260201.htm.

Where each $100 went: Lowe's, FY2025

Line	Per $100 that came in
Cost of sales	$66.5
Selling, general and administrative (SG&A)	$19.5
Depreciation and amortization outside cost of sales	$2.2
Interest, net	$1.6
Income taxes	$2.4
Kept as net income	$7.7
Total	$99.9

Source: Lowe's FY2025 (February 2025 to January 2026) Form 10-K, filed Mar 23, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/60667/000006066726000029/low-20260130.htm. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.

Where each $100 went: Procter & Gamble, FY2026

Line	Per $100 that came in
Cost of products sold	$49.0
Selling, general and administrative	$27.0
Interest and tax	$5.8
Noncontrolling holders	$0.1
Kept as net earnings	$18.1
Total	$100.0

Source: Procter & Gamble's FY2026 Form 10-K, filed Aug 4, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/80424/000008042426000103/pg-20260630.htm.

Where each $100 went: Alphabet, FY2025

Line	Per $100 that came in
Other cost of revenues	$23.7
Research and development	$14.1
Payments to partners for traffic	$13.9
Sales and marketing	$6.6
General and administrative	$5.0
Income tax	$6.2
Kept as net income	$30.6
Total	$100.1

Source: Alphabet's FY2025 Form 10-K, filed Feb 5, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/1652044/000165204426000018/goog-20251231.htm. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.

Where each $100 went: Meta, FY2025

Line	Per $100 that came in
Running the apps and data centers	$17.8
Research and development	$28.2
Marketing and sales	$5.9
General and administrative	$6.0
Income tax	$12.5
Kept as profit	$29.7
Total	$100.1

Source: Meta's FY2025 Form 10-K, filed Jan 29, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/1326801/000162828026003942/meta-20251231.htm. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.

Where each $100 went: Airbnb, FY2025

Line	Per $100 that came in
Cost of revenue	$16.1
Operations and support	$10.3
Product development	$18.2
Sales and marketing	$20.0
General and administrative	$10.4
Other expense, net	$0.9
Income tax	$4.8
Kept as net income	$19.4
Total	$100.1

Source: Airbnb's FY2025 Form 10-K, filed Feb 12, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/1559720/000155972026000004/abnb-20251231.htm. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.

Where each $100 went: DoorDash, FY2025

Line	Per $100 that came in
Cost of revenue	$48.4
Sales and marketing	$17.8
Research and development	$10.3
General and administrative, and restructuring	$11.5
Depreciation and amortization	$5.4
Kept as net income	$6.7
Total	$100.1

Source: DoorDash's FY2025 Form 10-K, filed Feb 18, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/1792789/000179278926000013/dash-20251231.htm. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.

Where each $100 went: T-Mobile, FY2025

Line	Per $100 that came in
Selling, general and admin	$26.6
Cost of equipment sales	$24.1
Depreciation, amortization and impairment	$15.6
Cost of services	$13.0
Interest and other expense, net	$4.5
Income tax	$3.7
Kept as net income	$12.4
Total	$99.9

Source: T-Mobile's FY2025 Form 10-K, filed Feb 11, 2026; open it on sec.gov: https://www.sec.gov/Archives/edgar/data/1283699/000128369926000010/tmus-20251231.htm. Lines are rounded to the nearest 10 cents, so the total may differ from $100 by a few cents.

Optional further reading: each company also has a Cityfort stock page at cityfort.co/stocks/ plus the name shown on its card. You don't need it for this project.

Each company's Cityfort page was checked against filings on: Nike Nov 1, 2026; Costco Nov 1, 2026; Apple Nov 7, 2026; McDonald's Nov 6, 2026; Chipotle Nov 6, 2026; Coca-Cola Nov 6, 2026; PepsiCo Nov 6, 2026; Netflix Nov 1, 2026; Walmart Nov 1, 2026; Disney Nov 1, 2026; Starbucks Nov 6, 2026; Target Nov 1, 2026; Home Depot Nov 1, 2026; Lowe's Nov 5, 2026; Procter & Gamble Nov 6, 2026; Alphabet Nov 1, 2026; Meta Oct 27, 2026; Airbnb Nov 6, 2026; DoorDash Nov 6, 2026; T-Mobile Nov 6, 2026.

Word bank

Revenue:: The money a company takes in from customers
Cost:: Money a company spends to run its business
Net income:: What is left after all costs and taxes. The cards call it "kept."
Fiscal year:: The company's own 12-month year. It may not end in December.
10-K:: The yearly report a US public company files with the SEC
Item:: A numbered section of a 10-K, such as Item 1 (Business)
Risk factor:: Something the company says could affect its business
Franchise:: A deal where another business runs a store under the company's name and pays it fees
Segment:: A part of the business that the company reports on its own

Sentence starters

"___ makes money by selling ___ to ___."
"Out of every $100 that came in during ___, ___ spent $___ on ___, its biggest cost."
"___ kept $___ of every $100 as net income in ___."
"The 10-K says ___ (Item ___, page ___)."
"One thing to watch is ___, because the 10-K lists it in Item 1A (page ___)."

Data from Nike's FY2026 Form 10-K, filed Jul 15, 2026; Costco's FY2026 Form 10-K, filed Oct 7, 2026; Apple's FY2026 Form 10-K, filed Nov 3, 2026; McDonald's FY2025 Form 10-K, filed Feb 24, 2026; Chipotle's FY2025 Form 10-K, filed Feb 4, 2026; Coca-Cola's FY2025 Form 10-K, filed Feb 20, 2026; PepsiCo's FY2025 Form 10-K, filed Feb 3, 2026; Netflix's FY2025 Form 10-K, filed Jan 23, 2026; Walmart's FY2026 Form 10-K, filed Mar 13, 2026; Disney's FY2025 Form 10-K, filed Nov 13, 2025; Starbucks's FY2026 earnings release (Form 8-K, Exhibit 99.1), filed Oct 29, 2026; Target's FY2025 (year ended Jan 31, 2026) Form 10-K, filed Mar 11, 2026; Home Depot's FY2025 (February 2025 to January 2026) Form 10-K, filed Mar 18, 2026; Lowe's FY2025 (February 2025 to January 2026) Form 10-K, filed Mar 23, 2026; Procter & Gamble's FY2026 Form 10-K, filed Aug 4, 2026; Alphabet's FY2025 Form 10-K, filed Feb 5, 2026; Meta's FY2025 Form 10-K, filed Jan 29, 2026; Airbnb's FY2025 Form 10-K, filed Feb 12, 2026; DoorDash's FY2025 Form 10-K, filed Feb 18, 2026; and T-Mobile's FY2025 Form 10-K, filed Feb 11, 2026. Checked Nov 7, 2026. Optional further reading: the lesson page.