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 financial data reveals several key trends over the analyzed period. Revenues generally demonstrated an upward trajectory from 2005 to 2014, increasing from approximately 9.3 billion US dollars to over 13 billion US dollars, indicating consistent growth in sales. However, there was a slight decline in revenues in the years 2009 and again marginally in 2013 and 2015, suggesting some fluctuations in sales performance during those years.
Net income followed a broadly positive trend over the same period, with notable growth from 762 million US dollars in 2005 to a peak of 1,597 million US dollars in 2012. After this peak, net income decreased notably in the subsequent two years before rebounding again in 2015. This pattern indicates variability in profitability despite relatively steady revenue increases, possibly reflecting operational or market challenges in certain years.
The net profit margin, expressed as a percentage, also showed variation across the years. It increased steadily from around 8.15% in 2005 to its highest point at 11.71% in 2012. This improvement in profit margin corresponds with the peak in net income and rising revenues, suggesting enhanced efficiency or pricing power. However, in the following years, the net profit margin declined to 7.91% in 2014 before recovering to 9.87% in 2015. This fluctuation in profitability margins highlights periods of pressure on cost structures or revenue quality.
- Revenue trends
- Continuous growth from 2005 to 2014, with minor declines in 2009, 2013, and 2015.
- Net income patterns
- Steady increase until 2012, peak at 1.6 billion, followed by decrease and partial recovery in 2015.
- Net profit margin development
- Improved from 8.15% to 11.71% by 2012, then dropped sharply and rebounded by 2015.
- Implications
- The lag between peak margin and the subsequent decline suggests possible rising costs or competitive pressures affecting profitability despite revenue growth.
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).