Common-Size Income Statement
Quarterly Data
YUM! Brands Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2016-09-03), 10-Q (reporting date: 2016-06-11), 10-Q (reporting date: 2016-03-19), 10-K (reporting date: 2015-12-26), 10-Q (reporting date: 2015-09-05), 10-Q (reporting date: 2015-06-13), 10-Q (reporting date: 2015-03-21), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-06), 10-Q (reporting date: 2014-06-14), 10-Q (reporting date: 2014-03-22), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-07), 10-Q (reporting date: 2013-06-15), 10-Q (reporting date: 2013-03-23), 10-K (reporting date: 2012-12-29), 10-Q (reporting date: 2012-09-08), 10-Q (reporting date: 2012-06-16), 10-Q (reporting date: 2012-03-24), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-03), 10-Q (reporting date: 2011-06-11), 10-Q (reporting date: 2011-03-19).
- Company Sales
- The percentage of revenues from company sales generally fluctuates between approximately 82.67% and 88.04% over the monitored periods. Notably, peaks occur around mid-2011 and mid-2012 at close to 88%, whereas the lowest points are observed near early 2016, reflecting a slight decline in direct company-operated sales over time.
- Franchise and License Fees and Income
- This category shows an inverse trend relative to company sales, with values ranging from about 11.96% to 17.33%. An increasing contribution from franchise and license fees is discernible after early 2013, peaking in some quarters around 17%, indicating growing reliance or growth in franchised operations compared to company-operated sales.
- Food and Paper Expenses
- Food and paper costs, expressed as a percentage of revenues, demonstrate a gradual improvement, decreasing from approximately -29.63% to about -24.64% by late 2016. This suggests effective cost control or favorable input cost trends, positively influencing profitability by lowering this major expense category.
- Payroll and Employee Benefits
- This expense oscillates but maintains a relatively stable pattern, mostly between -17.92% and -20.62% of revenues. No significant upward or downward trend is clear, implying steady labor cost management relative to sales.
- Occupancy and Other Operating Expenses
- These expenses remain relatively consistent, hovering mostly in the range of -22.75% to -27.5%, with slight fluctuations but no lasting trend of increase or decrease across the quarters.
- Company Restaurant Expenses
- The aggregate expenses related to company-operated restaurants show improvement over time, with a reduction in these costs as a percentage of revenues from highs around -76% to lows near -66%. This indicates enhanced operating efficiency at company-owned locations.
- General and Administrative Expenses
- The general and administrative costs fluctuate moderately between approximately -9.3% and -13.36% of revenues with occasional spikes, but no pronounced trend, implying controlled administrative spending relative to revenues.
- Franchise and License Expenses
- These expenses exhibit a slight upward trend, increasing from around -0.82% to about -2.43%, particularly escalating post-2014. This may reflect increased support or investments related to franchising activities.
- Closures and Impairment Expenses
- Closures and impairment expenses are generally low but with several noticeable spikes, such as a sharp increase in late 2013 and significant impairment in late 2014. These episodic charges negatively impact profitability during affected periods.
- Refranchising Gain (Loss)
- Refranchising gains fluctuate, with occasional positive impacts notably in mid-2013 and early 2016. Losses are minimal and intermittent, implying refranchising activity contributes variably but generally positively to financial results.
- Other Income (Expense)
- Other income/expense remains marginal relative to revenues, typically under 1%. There is some variation with intermittent positive and negative quarters but this line item has a limited effect on overall profitability.
- Costs and Expenses, Net
- Overall costs and expenses as a percentage of revenues show a wide range, with a noteworthy outlier in late 2014 where expenses exceed revenues (-101.08%). Generally, the figure ranges between -78% and -90%, revealing fluctuating but generally controlled expense management across the periods.
- Operating Profit
- Operating profit percentages vary substantially by quarter, with a notable low point in late 2014 (-1.08%) corresponding to elevated expenses in the same period. Peaks are observed in early 2012 and early 2016, reaching above 20%, indicating strong earnings in these quarters, reflecting operational efficiency and controlled costs.
- Interest Expense, Net
- Net interest expenses remain relatively modest and stable, mostly between -0.83% and -1.77%, with an anomalous increase in late 2013 (-3.66%) and again in late 2016, suggesting occasional periods of higher debt servicing costs.
- Income Before Income Taxes
- Income before taxes largely mirrors operating profit trends, with strong positive results interrupted by notable dips such as late 2014. Positive peaks exceed 20%, demonstrating periods of robust pre-tax profitability.
- Income Tax Provision/Benefit
- The tax provision generally tracks between roughly -2.2% and -5.36%, with some variability and occasional benefits or lesser provisions, including a positive tax effect in late 2016. The tax rate impacts net profitability fluctuations during periods of strong pre-tax income.
- Net Income (Including Noncontrolling Interests)
- Net income as a percentage of revenues shows considerable volatility, ranging from a low of nearly -3% in late 2014 to peaks above 15% in early 2016. This volatility parallels fluctuations in operating income, tax impacts, and extraordinary expenses such as impairments.
- Net Income Attributable to YUM! Brands, Inc.
- The net income specifically attributable to the company reflects the same pattern as total net income but excludes impacts from noncontrolling interests. Significant volatility occurs, with high performance periods in early 2012 and early 2016 and a marked earnings decline in late 2014. Overall, the data suggest the company experiences cyclical profitability influenced by operational efficiencies, cost management, refranchising activities, and occasional charges for closures and impairments.