Stock Analysis on Net
Stock Analysis on Net

YUM! Brands Inc. (NYSE:YUM)

This company has been moved to the archive! The financial data has not been updated since October 11, 2016.

Common-Size Income Statement 

YUM! Brands Inc., common-size consolidated income statement

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12 months ended: Dec 26, 2015 Dec 27, 2014 Dec 28, 2013 Dec 29, 2012 Dec 31, 2011
Company sales 85.04 85.28 85.48 86.80 86.27
Franchise and license fees and income 14.96 14.72 14.52 13.20 13.73
Revenues 100.00% 100.00% 100.00% 100.00% 100.00%
Food and paper -26.76 -27.70 -28.04 -28.42 -28.77
Payroll and employee benefits -19.21 -19.42 -19.10 -19.22 -19.15
Occupancy and other operating expenses -25.45 -25.79 -25.47 -24.63 -24.47
Company restaurant expenses -71.42% -72.91% -72.62% -72.27% -72.39%
General and administrative expenses -11.48 -10.69 -10.79 -11.08 -10.87
Franchise and license expenses -1.85 -1.20 -1.21 -0.98 -1.15
Closures and impairment expenses -0.60 -4.03 -2.53 -0.27 -1.07
Refranchising gain (loss) -0.08 0.25 0.76 0.57 -0.57
Equity income from investments in unconsolidated affiliates 0.31 0.23 0.20 0.34 0.37
Gain upon acquisition of Little Sheep 0.00 0.00 0.00 0.54 0.00
China poultry supply insurance recovery 0.04 0.19 0.00 0.00 0.00
Loss associated with planned sale of aircraft -0.11 0.00 0.00 0.00 0.00
Foreign exchange net gain (loss) and other -0.16 -0.11 -0.08 -0.04 0.05
Other income (expense) 0.08% 0.31% 0.12% 0.84% 0.42%
Costs and expenses, net -85.34% -88.27% -86.26% -83.17% -85.62%
Operating profit 14.66% 11.73% 13.74% 16.83% 14.38%
Interest expense -1.18 -1.14 -2.06 -1.24 -1.46
Interest income 0.16 0.17 0.18 0.15 0.22
Interest expense, net -1.02% -0.98% -1.89% -1.09% -1.24%
Income before income taxes 13.64% 10.75% 11.85% 15.73% 13.14%
Income tax provision -3.73 -3.06 -3.72 -3.94 -2.57
Net income, including noncontrolling interests 9.90% 7.69% 8.13% 11.79% 10.57%
Net (income) loss, noncontrolling interests -0.04 0.23 0.21 -0.08 -0.13
Net income, YUM! Brands, Inc. 9.87% 7.91% 8.34% 11.71% 10.45%

Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).

Revenue Composition
Over the five-year period, the proportion of company sales relative to total revenues showed a slight decreasing trend, declining from 86.27% in 2011 to 85.04% in 2015. Conversely, franchise and license fees and income increased from 13.73% to 14.96%, indicating a gradual shift towards higher income from franchising activities.
Cost Structure
Food and paper costs consistently decreased as a percentage of revenues, moving downward from -28.77% in 2011 to -26.76% in 2015, reflecting improved cost control or favorable input pricing. Payroll and employee benefits remained relatively stable, fluctuating narrowly around 19% of revenues. Occupancy and other operating expenses slightly increased until 2014 but saw a minor reduction in 2015, maintaining a range between -24.47% and -25.79%. Company restaurant expenses mirrored these trends, with a small reduction in 2015 bringing it to the lowest percentage in the period at -71.42%.
Operating Expenses
General and administrative expenses hovered around 11% of revenues, with a slight uptick observed in 2015. Franchise and license expenses showed variability, with a notable increase to -1.85% in 2015 after relatively lower figures in previous years. The closures and impairment expenses fluctuated significantly, peaking notably in 2014 at -4.03%, before dropping sharply in 2015.
Non-Recurring and Other Income/Expenses
Refranchising gains were generally positive but showed a decline toward the end of the period, turning slightly negative in 2015. Equity income from investments in unconsolidated affiliates remained low but fairly steady. Non-recurring items such as gain upon acquisition of Little Sheep appeared only in 2012, while China poultry supply insurance recovery was recognized primarily in 2014, diminishing in 2015. There was a minor loss associated with the planned sale of aircraft in 2015. Foreign exchange gains and other income displayed marginal negative trends toward the end of the period.
Profitability
Operating profit displayed volatility, peaking at 16.83% in 2012 but declining in 2013 and 2014, before recovering to 14.66% in 2015. Income before income taxes followed a similar pattern, reaching a high in 2012, dropping in subsequent years, and increasing again by 2015. Net income attributable to YUM! Brands, Inc. showed a decrease after 2012 but improved in 2015 to 9.87%, indicating recovery after a period of lower profitability.
Interest and Taxation
Net interest expense decreased overall in relation to revenues, particularly improving in 2014 and 2015. The income tax provision fluctuated around a narrow range, peaking in 2012 at -3.94% and settling near -3.7% in 2015, implying consistent tax impact relative to income.