Operating Profit Margin
since 2005
Calculation
YUM! Brands Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating profit1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 26, 2015 | 14.66% | = | 100 | × | 1,921) | ÷ | 13,105) |
| Dec 27, 2014 | 11.73% | = | 100 | × | 1,557) | ÷ | 13,279) |
| Dec 28, 2013 | 13.74% | = | 100 | × | 1,798) | ÷ | 13,084) |
| Dec 29, 2012 | 16.83% | = | 100 | × | 2,294) | ÷ | 13,633) |
| Dec 31, 2011 | 14.38% | = | 100 | × | 1,815) | ÷ | 12,626) |
| Dec 25, 2010 | 15.60% | = | 100 | × | 1,769) | ÷ | 11,343) |
| Dec 26, 2009 | 14.67% | = | 100 | × | 1,590) | ÷ | 10,836) |
| Dec 27, 2008 | 13.35% | = | 100 | × | 1,506) | ÷ | 11,279) |
| Dec 29, 2007 | 13.03% | = | 100 | × | 1,357) | ÷ | 10,416) |
| Dec 30, 2006 | 13.20% | = | 100 | × | 1,262) | ÷ | 9,561) |
| Dec 31, 2005 | 12.33% | = | 100 | × | 1,153) | ÷ | 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
Between 2005 and 2015, the operating profit margin exhibited a cyclical trajectory characterized by a period of steady expansion, a sharp mid-term contraction, and a subsequent recovery. While total revenues generally trended upward for much of the decade, the operating margin fluctuated, reflecting changes in operational efficiency and cost management.
- Margin Expansion Phase (2005–2012)
- A consistent upward trend in profitability is observed from 2005 to 2012. During this interval, the operating profit margin rose from 12.33% to a peak of 16.83%. This growth was supported by a steady increase in revenues, which climbed from 9,349 million USD to 13,633 million USD, indicating that operating profits grew at a faster rate than top-line revenue.
- Margin Contraction and Volatility (2013–2014)
- A significant decline in operational efficiency occurred between 2013 and 2014. The operating profit margin dropped sharply to 13.74% in 2013 and reached a period low of 11.73% in 2014. This contraction was primarily driven by a substantial decrease in operating profit, which fell from 2,294 million USD in 2012 to 1,557 million USD in 2014, despite revenues remaining relatively stable above 13,000 million USD.
- Operational Recovery (2015)
- A strong recovery is evident in 2015, with the operating profit margin rebounding to 14.66%. This improvement was achieved despite a slight decrease in total revenues to 13,105 million USD. The increase in operating profit to 1,921 million USD suggests a successful optimization of operating expenses or a shift in the cost structure during this fiscal year.
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Comparison to Competitors
YUM! Brands Inc., operating 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 | 14.66% | — | 35.33% | 16.96% | — | 28.12% | 18.79% |
| Dec 27, 2014 | 11.73% | — | 36.41% | 17.30% | — | 28.97% | 18.73% |
| Dec 28, 2013 | 13.74% | — | 35.51% | 16.57% | — | 31.18% | -2.19% |
| Dec 29, 2012 | 16.83% | — | 34.78% | 16.69% | — | 31.21% | 15.02% |
| Dec 31, 2011 | 14.38% | — | 32.12% | 15.45% | — | 31.58% | 14.77% |
| Dec 25, 2010 | 15.60% | — | 25.50% | 15.68% | — | 31.04% | 13.26% |
| Dec 26, 2009 | 14.67% | — | 20.14% | 13.42% | — | 30.08% | 5.75% |
| Dec 27, 2008 | 13.35% | — | 15.36% | 9.31% | — | 27.39% | 4.85% |
| Dec 29, 2007 | 13.03% | — | 9.79% | 9.96% | — | 17.02% | 11.20% |
| Dec 30, 2006 | 13.20% | — | 5.52% | 7.53% | — | 20.59% | 11.48% |
| Dec 31, 2005 | 12.33% | — | 3.73% | 4.94% | — | 19.66% | 12.26% |
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).