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).
The financial performance exhibits a consistent revenue structure characterized by a primary reliance on company-operated sales, supplemented by franchise and license fees. While overall profitability remained generally positive throughout the period, significant volatility was introduced by non-recurring impairment charges and strategic closures.
- Revenue Composition
- Company sales consistently represent the vast majority of total revenues, typically fluctuating between 82% and 88%. Franchise and license fees provide a secondary revenue stream, generally ranging from 12% to 17%. A slight inverse correlation is observable, where periods of lower company sales percentages often coincide with higher franchise fee contributions.
- Company Restaurant Operating Costs
- Food and paper costs show a gradual improvement over time, decreasing from peaks near 29% in 2011 to approximately 24.6% by September 2016. Payroll and employee benefits remain relatively stable, typically oscillating between 18% and 20% of revenues. Occupancy and other operating expenses exhibit more volatility, generally fluctuating between 22% and 27%, contributing to total restaurant expenses that typically range from 66% to 76% of total revenues.
- Operating Expense Volatility
- General and administrative expenses are maintained within a range of 9% to 13%. However, the "Closures and impairment expenses" line item introduces substantial instability. While typically negligible, significant spikes occurred in September 2013 (8.66%) and December 2014 (12.63%), the latter of which resulted in a temporary negative operating profit of -1.08% for that quarter.
- Profitability and Net Income Trends
- Operating profit margins typically fluctuate between 10% and 23%, reflecting a high degree of operational leverage. Interest expenses are generally managed around 1% of revenues, although periodic increases are noted. Net income attributable to YUM! Brands, Inc. demonstrates a recovery trend following the late 2014 contraction, culminating in a peak of 18.76% of revenues by September 2016, the highest margin observed in the provided period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?