Price to Earnings (P/E)
since 2005
Calculation
YUM! Brands Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income, YUM! Brands, Inc.1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 16, 2016 | 21.97 | = | 69.52 | ÷ | 3.16 | 3.16 | = | 1,293 | ÷ | 408,711,522 | |
| Feb 17, 2015 | 31.34 | = | 76.05 | ÷ | 2.43 | 2.43 | = | 1,051 | ÷ | 433,115,252 | |
| Feb 18, 2014 | 29.73 | = | 73.24 | ÷ | 2.46 | 2.46 | = | 1,091 | ÷ | 442,931,286 | |
| Feb 20, 2013 | 18.22 | = | 64.56 | ÷ | 3.54 | 3.54 | = | 1,597 | ÷ | 450,729,244 | |
| Feb 21, 2012 | 22.86 | = | 65.50 | ÷ | 2.86 | 2.86 | = | 1,319 | ÷ | 460,414,239 | |
| Feb 15, 2011 | 20.48 | = | 50.73 | ÷ | 2.48 | 2.48 | = | 1,158 | ÷ | 467,446,794 | |
| Feb 17, 2010 | 14.75 | = | 33.66 | ÷ | 2.28 | 2.28 | = | 1,071 | ÷ | 469,275,605 | |
| Feb 23, 2009 | 13.10 | = | 27.45 | ÷ | 2.10 | 2.10 | = | 964 | ÷ | 459,931,675 | |
| Feb 25, 2008 | 19.00 | = | 36.33 | ÷ | 1.91 | 1.91 | = | 909 | ÷ | 475,493,520 | |
| Feb 28, 2007 | 18.54 | = | 28.97 | ÷ | 1.56 | 1.56 | = | 824 | ÷ | 527,251,252 | |
| Mar 3, 2006 | 17.59 | = | 24.30 | ÷ | 1.38 | 1.38 | = | 762 | ÷ | 551,661,712 |
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$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of YUM! Brands Inc. Annual Report.
An analysis of the financial metrics between March 2006 and February 2016 reveals a general upward trajectory in both share price and earnings per share, accompanied by significant volatility in the price-to-earnings (P/E) valuation ratio.
- Share Price and Earnings Growth
- The share price exhibited a strong long-term increase, rising from 24.30 US$ in 2006 to a peak of 76.05 US$ in 2015, before closing at 69.52 US$ in 2016. This growth was largely supported by a consistent rise in earnings per share (EPS), which grew from 1.38 US$ in 2006 to 3.16 US$ in 2016. A notable period of earnings contraction occurred between 2014 and 2015, where EPS declined from 2.46 US$ to 2.43 US$, contrasting with the overall growth trend.
- P/E Ratio Volatility and Market Valuation
- The P/E ratio fluctuated considerably, reflecting shifting market sentiment. A period of relative stability was observed from 2006 to 2008, with the ratio hovering between 17.59 and 19.00. A significant contraction occurred in 2009, with the ratio dropping to 13.10, its lowest point in the analyzed period. Following this, a recovery phase led the ratio to reach 22.86 by 2012.
- Valuation Divergence
- A significant divergence between earnings and valuation is evident between 2014 and 2015. During this window, the P/E ratio surged to its peak of 31.34, despite the simultaneous decline in EPS. This suggests a period where the market price was driven by expectations of future growth or other external factors rather than current earnings performance. By 2016, the P/E ratio corrected to 21.97 as EPS rebounded strongly to 3.16 US$, aligning the valuation more closely with fundamental earnings growth.
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Comparison to Competitors
YUM! Brands Inc., P/E, 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. | |
|---|---|---|---|---|---|---|---|
| Feb 16, 2016 | 21.97 | — | 24.03 | 29.06 | — | 23.56 | 32.88 |
| Feb 17, 2015 | 31.34 | — | 26.12 | 47.09 | — | 19.19 | 28.27 |
| Feb 18, 2014 | 29.73 | — | 35.35 | 51.40 | — | 17.10 | 7,312.64 |
| Feb 20, 2013 | 18.22 | — | 24.45 | 35.78 | — | 17.64 | 26.20 |
| Feb 21, 2012 | 22.86 | — | 27.88 | 54.76 | — | 18.57 | 25.14 |
| Feb 15, 2011 | 20.48 | — | 42.86 | 46.04 | — | 15.70 | 24.20 |
| Feb 17, 2010 | 14.75 | — | 21.46 | 26.12 | — | 15.10 | 40.57 |
| Feb 23, 2009 | 13.10 | — | 17.74 | 21.96 | — | 14.02 | 19.66 |
| Feb 25, 2008 | 19.00 | — | 28.14 | 48.84 | — | 26.95 | 25.02 |
| Feb 28, 2007 | 18.54 | — | 27.59 | 50.83 | — | 15.55 | 48.96 |
| Mar 3, 2006 | 17.59 | — | 4.89 | 46.61 | — | 17.02 | 48.21 |
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., P/E, long-term trends, comparison to sector (consumer services)
| YUM! Brands Inc. | Consumer Services | |
|---|---|---|
| Feb 16, 2016 | 21.97 | 26.42 |
| Feb 17, 2015 | 31.34 | 24.14 |
| Feb 18, 2014 | 29.73 | 30.71 |
| Feb 20, 2013 | 18.22 | 20.75 |
| Feb 21, 2012 | 22.86 | 21.79 |
| Feb 15, 2011 | 20.48 | 19.91 |
| Feb 17, 2010 | 14.75 | 17.70 |
| Feb 23, 2009 | 13.10 | 14.65 |
| Feb 25, 2008 | 19.00 | 27.08 |
| Feb 28, 2007 | 18.54 | 20.57 |
| Mar 3, 2006 | 17.59 | 21.30 |
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., P/E, long-term trends, comparison to industry (consumer discretionary)
| YUM! Brands Inc. | Consumer Discretionary | |
|---|---|---|
| Feb 16, 2016 | 21.97 | 24.70 |
| Feb 17, 2015 | 31.34 | 29.48 |
| Feb 18, 2014 | 29.73 | 26.50 |
| Feb 20, 2013 | 18.22 | 20.90 |
| Feb 21, 2012 | 22.86 | 11.38 |
| Feb 15, 2011 | 20.48 | 17.54 |
| Feb 17, 2010 | 14.75 | 18.66 |
| Feb 23, 2009 | 13.10 | 303.41 |
| Feb 25, 2008 | 19.00 | 24.33 |
| Feb 28, 2007 | 18.54 | 117.34 |
| Mar 3, 2006 | 17.59 | 17.54 |
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).