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.
- Share Price Trends
- The share price showed an overall upward trajectory from 2006 to 2016 despite some volatility. Starting at $24.30 in 2006, it rose steadily to $36.33 by early 2008, then declined to $27.45 in 2009, coinciding with a broader market downturn. Subsequent years exhibited recovery and growth, reaching a peak of $76.05 in 2015 before slightly declining to $69.52 in 2016. The general pattern indicates significant appreciation over the examined period, with notable fluctuations likely influenced by market conditions and company performance.
- Operating Profit Per Share (OPPS) Analysis
- Operating profit per share increased consistently over the period, rising from $2.09 in 2006 to $4.70 in 2016. This upward trend suggests improving profitability on a per-share basis. Notable increments occurred between 2012 and 2013, where OPPS jumped from $3.94 to $5.09, before stabilizing with minor fluctuations in subsequent years. The data indicate enhanced operational efficiency or growth in earnings contributing to shareholder value.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio exhibited considerable variability across the timeframe. Initially stable around 11.63 to 12.73 (2006-2008), there was a sharp decline to 8.38 in 2009, reflecting a drop in share price relative to operating profit during that year. Post-2009, the ratio increased markedly, peaking at 21.16 in 2015, which suggests the market valued earnings more highly or that share price increases outpaced operating profit growth. However, by 2016, the ratio decreased to 14.79, indicating some market correction or alignment of share price with operational earnings.
- Overall Insights
- The data reveals an improving operational performance as evidenced by steadily rising operating profit per share. Share price appreciation generally mirrors this trend but with higher volatility, notably around economic downturn periods. The fluctuating P/OP ratio suggests changing market sentiment and valuation multiples, with periods where share price growth outpaced earnings and vice versa. This dynamic interplay underscores the importance of both financial performance and market perception in determining share value over time.
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 | — | 20.59 | 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 | — | 22.32 | 16.27 | — | 10.04 | 28.21 |
| Feb 23, 2009 | 8.38 | — | 11.86 | 13.85 | — | 9.38 | 12.31 |
| Feb 25, 2008 | 12.73 | — | 31.71 | 31.86 | — | 16.64 | 15.97 |
| Feb 28, 2007 | 12.10 | — | 32.23 | 33.99 | — | 12.40 | 30.91 |
| Mar 3, 2006 | 11.63 | — | 26.02 | 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).