Net Profit Margin
since 2005
Calculation
YUM! Brands Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income, YUM! Brands, Inc.1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 26, 2015 | 9.87% | = | 100 | × | 1,293) | ÷ | 13,105) |
| Dec 27, 2014 | 7.91% | = | 100 | × | 1,051) | ÷ | 13,279) |
| Dec 28, 2013 | 8.34% | = | 100 | × | 1,091) | ÷ | 13,084) |
| Dec 29, 2012 | 11.71% | = | 100 | × | 1,597) | ÷ | 13,633) |
| Dec 31, 2011 | 10.45% | = | 100 | × | 1,319) | ÷ | 12,626) |
| Dec 25, 2010 | 10.21% | = | 100 | × | 1,158) | ÷ | 11,343) |
| Dec 26, 2009 | 9.88% | = | 100 | × | 1,071) | ÷ | 10,836) |
| Dec 27, 2008 | 8.55% | = | 100 | × | 964) | ÷ | 11,279) |
| Dec 29, 2007 | 8.73% | = | 100 | × | 909) | ÷ | 10,416) |
| Dec 30, 2006 | 8.62% | = | 100 | × | 824) | ÷ | 9,561) |
| Dec 31, 2005 | 8.15% | = | 100 | × | 762) | ÷ | 9,349) |
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), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The net profit margin exhibited a period of general expansion followed by a sharp contraction and a subsequent recovery between 2005 and 2015. The trajectory indicates a capacity to scale profitability alongside revenue growth for the majority of the decade, despite a significant period of volatility in the latter years.
- Growth and Peak Profitability (2005–2012)
- A consistent upward trend in net profit margin is observed from 2005 to 2012. Beginning at 8.15% in 2005, the margin climbed steadily, surpassing the 10% threshold by 2010. This growth phase culminated in a peak margin of 11.71% in 2012, coinciding with the highest recorded revenues of 13,633 million US dollars and net income of 1,597 million US dollars. This period suggests an improvement in operational efficiency and cost management relative to revenue generation.
- Profitability Contraction (2013–2014)
- A significant reversal in profitability occurred starting in 2013. The net profit margin dropped sharply from its 11.71% peak to 8.34% in 2013, further declining to 7.91% in 2014, which represents the lowest margin in the analyzed period. This contraction was driven by a decrease in net income to 1,091 million US dollars in 2013 and 1,051 million US dollars in 2014, while revenues remained relatively stable around 13 billion US dollars, indicating an increase in operating costs or other non-operating expenses.
- Margin Recovery (2015)
- The final year of the period shows a robust recovery in profitability. The net profit margin rose to 9.87% in 2015, supported by a substantial increase in net income to 1,293 million US dollars. This recovery was achieved despite revenues remaining nearly flat at 13,105 million US dollars, suggesting successful cost-reduction initiatives or an improvement in the underlying profit structure.
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Comparison to Competitors
YUM! Brands Inc., net profit margin, long-term trends, comparison to competitors
| YUM! Brands Inc. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | DoorDash, Inc. | McDonald’s Corp. | Starbucks Corp. | |
|---|---|---|---|---|---|---|---|
| Dec 26, 2015 | 9.87% | — | 27.66% | 10.57% | — | 17.82% | 14.39% |
| Dec 27, 2014 | 7.91% | — | 28.69% | 10.84% | — | 17.34% | 12.57% |
| Dec 28, 2013 | 8.34% | — | 27.86% | 10.19% | — | 19.87% | 0.06% |
| Dec 29, 2012 | 11.71% | — | 26.98% | 10.18% | — | 19.82% | 10.40% |
| Dec 31, 2011 | 10.45% | — | 24.25% | 9.47% | — | 20.38% | 10.65% |
| Dec 25, 2010 | 10.21% | — | 17.10% | 9.75% | — | 20.55% | 8.83% |
| Dec 26, 2009 | 9.88% | — | 20.93% | 8.35% | — | 20.01% | 4.00% |
| Dec 27, 2008 | 8.55% | — | 10.26% | 5.87% | — | 18.34% | 3.04% |
| Dec 29, 2007 | 8.73% | — | 11.15% | 6.50% | — | 10.51% | 7.15% |
| Dec 30, 2006 | 8.62% | — | 6.63% | 5.03% | — | 16.42% | 7.25% |
| Dec 31, 2005 | 8.15% | — | 20.02% | 6.01% | — | 12.72% | 7.76% |
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), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Consumer Services)
YUM! Brands Inc., net profit margin, long-term trends, comparison to sector (consumer services)
| YUM! Brands Inc. | Consumer Services | |
|---|---|---|
| Dec 26, 2015 | 9.87% | 17.69% |
| Dec 27, 2014 | 7.91% | 17.17% |
| Dec 28, 2013 | 8.34% | 14.74% |
| Dec 29, 2012 | 11.71% | 17.49% |
| Dec 31, 2011 | 10.45% | 17.69% |
| Dec 25, 2010 | 10.21% | 16.62% |
| Dec 26, 2009 | 9.88% | 15.28% |
| Dec 27, 2008 | 8.55% | 13.20% |
| Dec 29, 2007 | 8.73% | 9.50% |
| Dec 30, 2006 | 8.62% | 13.49% |
| Dec 31, 2005 | 8.15% | 11.71% |
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), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Discretionary)
YUM! Brands Inc., net profit margin, long-term trends, comparison to industry (consumer discretionary)
| YUM! Brands Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 26, 2015 | 9.87% | 6.37% |
| Dec 27, 2014 | 7.91% | 4.66% |
| Dec 28, 2013 | 8.34% | 5.29% |
| Dec 29, 2012 | 11.71% | 5.32% |
| Dec 31, 2011 | 10.45% | 8.80% |
| Dec 25, 2010 | 10.21% | 5.80% |
| Dec 26, 2009 | 9.88% | 4.94% |
| Dec 27, 2008 | 8.55% | 0.22% |
| Dec 29, 2007 | 8.73% | 3.23% |
| Dec 30, 2006 | 8.62% | 0.73% |
| Dec 31, 2005 | 8.15% | 4.49% |
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), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).