Price to Operating Profit (P/OP)
since 2005
Calculation
YUM! Brands Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating profit1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 16, 2016 | 14.79 | = | 69.52 | ÷ | 4.70 | 4.70 | = | 1,921 | ÷ | 408,711,522 | |
| Feb 17, 2015 | 21.16 | = | 76.05 | ÷ | 3.59 | 3.59 | = | 1,557 | ÷ | 433,115,252 | |
| Feb 18, 2014 | 18.04 | = | 73.24 | ÷ | 4.06 | 4.06 | = | 1,798 | ÷ | 442,931,286 | |
| Feb 20, 2013 | 12.68 | = | 64.56 | ÷ | 5.09 | 5.09 | = | 2,294 | ÷ | 450,729,244 | |
| Feb 21, 2012 | 16.62 | = | 65.50 | ÷ | 3.94 | 3.94 | = | 1,815 | ÷ | 460,414,239 | |
| Feb 15, 2011 | 13.41 | = | 50.73 | ÷ | 3.78 | 3.78 | = | 1,769 | ÷ | 467,446,794 | |
| Feb 17, 2010 | 9.93 | = | 33.66 | ÷ | 3.39 | 3.39 | = | 1,590 | ÷ | 469,275,605 | |
| Feb 23, 2009 | 8.38 | = | 27.45 | ÷ | 3.27 | 3.27 | = | 1,506 | ÷ | 459,931,675 | |
| Feb 25, 2008 | 12.73 | = | 36.33 | ÷ | 2.85 | 2.85 | = | 1,357 | ÷ | 475,493,520 | |
| Feb 28, 2007 | 12.10 | = | 28.97 | ÷ | 2.39 | 2.39 | = | 1,262 | ÷ | 527,251,252 | |
| Mar 3, 2006 | 11.63 | = | 24.30 | ÷ | 2.09 | 2.09 | = | 1,153 | ÷ | 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.
The financial trajectory between 2006 and 2016 is characterized by substantial growth in share price and operating profitability, although the valuation multiple exhibited notable volatility. While operating profit per share generally trended upward over the decade, the market valuation relative to those profits fluctuated, reaching a peak in 2015 before contracting.
- Share Price Performance
- A general upward trajectory was observed from 2006 to 2015, with the price rising from US$ 24.30 to a peak of US$ 76.05. A sharp temporary decline occurred in 2009, where the price dropped to US$ 27.45, followed by a robust recovery phase between 2010 and 2012 that saw the price more than double.
- Operating Profit per Share Trends
- Operating profit per share demonstrated consistent long-term growth, increasing from US$ 2.09 in 2006 to US$ 4.70 in 2016. A period of operational contraction was noted between 2014 and 2015, where profits declined from US$ 4.06 to US$ 3.59, before rebounding strongly in 2016 to reach near-historic highs.
- Price to Operating Profit (P/OP) Analysis
- The P/OP ratio exhibited significant volatility, fluctuating between a low of 8.38 in 2009 and a high of 21.16 in 2015. The 2009 low indicates a period where share price depreciation occurred despite an increase in operating profit per share. Conversely, the peak in 2015 occurred during a phase of declining operating profits, suggesting a divergence between market valuation and actual operational performance during that period. By 2016, the ratio underwent a correction, settling at 14.79.
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Comparison to Competitors
YUM! Brands Inc., P/OP, 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 | 14.79 | — | 18.81 | 18.10 | — | 14.94 | 25.18 |
| Feb 17, 2015 | 21.16 | — | 20.58 | 29.50 | — | 11.48 | 18.97 |
| Feb 18, 2014 | 18.04 | — | 27.73 | 31.59 | — | 10.90 | — |
| Feb 20, 2013 | 12.68 | — | 18.97 | 21.82 | — | 11.20 | 18.15 |
| Feb 21, 2012 | 16.62 | — | 21.06 | 33.58 | — | 11.98 | 18.12 |
| Feb 15, 2011 | 13.41 | — | 28.74 | 28.63 | — | 10.39 | 16.12 |
| Feb 17, 2010 | 9.93 | — | 22.31 | 16.27 | — | 10.04 | 28.21 |
| Feb 23, 2009 | 8.38 | — | 11.86 | 13.85 | — | 9.38 | 12.31 |
| Feb 25, 2008 | 12.73 | — | 31.73 | 31.86 | — | 16.64 | 15.97 |
| Feb 28, 2007 | 12.10 | — | 32.29 | 33.99 | — | 12.40 | 30.91 |
| Mar 3, 2006 | 11.63 | — | 26.01 | 56.69 | — | 11.01 | 30.54 |
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).