YUM! Brands Inc. (NYSE:YUM)

The financial data presents quarterly patterns and variations in revenues, costs, expenses, and income over a span from early 2011 to late 2016. Several trends emerge from the examination of this data.

Revenue and Sales Trends

Company sales show a seasonal and cyclical pattern with peaks typically occurring in the fourth quarter of each year. There is an overall growth trend from 2011 through 2014, after which sales stabilize and fluctuate within a narrower range. Franchise and license fees and income display a steady increase over the observed period, reflecting an expanding or strengthening franchising segment. Total revenues mirror the company sales trend, peaking in the fourth quarter, with gradual growth until 2014 and some variability thereafter.

Cost and Expense Analysis

Food and paper costs consistently represent a major expense, closely following revenue fluctuations but maintaining a relatively steady proportion of total costs. Payroll and employee benefits expenses increase over time, aligning with increased sales volumes but showing some efficiency gains given the less steep rise compared to sales. Occupancy and other operating expenses increase steadily, reflecting potentially higher operational scale or cost inflation. Together, company restaurant expenses demonstrate a steady increase congruent with sales growth until 2014, followed by more stable but slightly fluctuating levels.

Operating Profit and Profitability

Operating profit generally increases through 2011 to 2014, reflecting improved operational efficiency and revenue gains. However, a significant anomaly occurs in the fourth quarter of 2014, where operating profit turns sharply negative, indicating a possible extraordinary event or loss during that period. Subsequently, operating profit recovers and stabilizes at a moderate level. Net income closely follows operating profit trends, showing growth until 2014, a sharp decline in late 2014 likely tied to the operating loss, and then a recovery with occasional fluctuations. The company's net income attributable to YUM! Brands, Inc. confirms these patterns, illustrating resilience after the downturn.

Other Financial Elements

General and administrative expenses rise gradually and proportionally with the company’s overall scale of operations. Franchise and license expenses also increase but at a slower and more variable rate. Notably, the closures and impairment expenses spike significantly in specific quarters such as the fourth quarter of 2013 and 2014, and this contributes to fluctuations in operating profit. The refranchising gain (loss) line exhibits some volatility with occasional gains and losses, pointing to transactions involving changes in franchising arrangements which impact income variably across quarters. Interest expenses remain relatively stable, without showing significant increases or decreases.

Income Tax and Net Income Volatility

Income tax provisions vary widely, reflecting the underlying fluctuations in taxable income and possibly tax planning or adjustments. The provision spikes unusually during certain quarters, such as the fourth quarter of 2013 and 2015, which coincide with notable shifts in pretax income. Net income benefits from tax adjustments but is generally influenced by the underlying operational results and exceptional items such as closures, impairment charges, and refranchising gains/losses.

In summary, the data indicates steady growth and seasonality in sales and revenues through 2014, accompanied by proportional increases in expenses and improving profitability. The end of 2014 highlights an operational and financial challenge with negative profits, followed by recovery phases. Expense management appears consistent overall, despite occasional spikes due to closures and impairments. The franchising side of the business steadily augments revenue, while refranchising activities introduce some income volatility. Interest expenses and general administrative costs maintain moderate, stable levels relative to the scale of operations. Tax provisions contribute to income volatility but correspond logically to pretax earnings fluctuations.