Return on Assets (ROA)
since 2005
Calculation
YUM! Brands Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income, YUM! Brands, Inc.1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 26, 2015 | 16.01% | = | 100 | × | 1,293) | ÷ | 8,075) |
| Dec 27, 2014 | 12.59% | = | 100 | × | 1,051) | ÷ | 8,345) |
| Dec 28, 2013 | 12.55% | = | 100 | × | 1,091) | ÷ | 8,695) |
| Dec 29, 2012 | 17.72% | = | 100 | × | 1,597) | ÷ | 9,011) |
| Dec 31, 2011 | 14.93% | = | 100 | × | 1,319) | ÷ | 8,834) |
| Dec 25, 2010 | 13.92% | = | 100 | × | 1,158) | ÷ | 8,316) |
| Dec 26, 2009 | 14.98% | = | 100 | × | 1,071) | ÷ | 7,148) |
| Dec 27, 2008 | 14.77% | = | 100 | × | 964) | ÷ | 6,527) |
| Dec 29, 2007 | 12.55% | = | 100 | × | 909) | ÷ | 7,242) |
| Dec 30, 2006 | 12.97% | = | 100 | × | 824) | ÷ | 6,353) |
| Dec 31, 2005 | 13.37% | = | 100 | × | 762) | ÷ | 5,698) |
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 trajectory between 2005 and 2015 is characterized by a general expansion in profitability and asset utilization, despite notable volatility in the latter portion of the period. Net income and total assets both experienced growth for the majority of the decade, though the correlation between these two variables fluctuated, leading to varied efficiency levels as measured by the Return on Assets (ROA).
- Net Income Trajectory
- Net income demonstrated a consistent upward trend from 762 million US$ in 2005 to a peak of 1,597 million US$ in 2012. A significant contraction occurred in 2013 and 2014, where income fell to 1,091 million US$ and 1,051 million US$ respectively. However, a recovery was observed by 2015, with net income rising again to 1,293 million US$.
- Asset Base Evolution
- Total assets grew steadily from 5,698 million US$ in 2005 to a maximum of 9,011 million US$ in 2012. Following this peak, a downward trend in the asset base is evident, with total assets decreasing to 8,075 million US$ by 2015. This reduction in total assets during the final three years of the period suggests a shift toward a more asset-light operational model or a strategic divestment of assets.
- Return on Assets (ROA) Efficiency
- The ROA exhibited fluctuation throughout the period, ranging from a minimum of 12.55% to a maximum of 17.72%. The peak ROA in 2012 aligns with the highest recorded net income, representing the period of maximum operational efficiency. The subsequent decline in 2013 and 2014 back to 12.55% was primarily driven by the drop in net income. The rebound to 16.01% in 2015 was the result of a dual impact: the recovery of net income combined with a continuing reduction in the total asset base, which mathematically amplified the return ratio.
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Comparison to Competitors
YUM! Brands Inc., ROA, 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 | 16.01% | — | 14.65% | 17.45% | — | 11.94% | 22.15% |
| Dec 27, 2014 | 12.59% | — | 16.21% | 17.49% | — | 13.88% | 19.23% |
| Dec 28, 2013 | 12.55% | — | 18.12% | 16.30% | — | 15.25% | 0.07% |
| Dec 29, 2012 | 17.72% | — | 21.61% | 16.66% | — | 15.44% | 16.84% |
| Dec 31, 2011 | 14.93% | — | 26.60% | 15.08% | — | 16.68% | 16.92% |
| Dec 25, 2010 | 13.92% | — | 18.15% | 15.96% | — | 15.47% | 14.81% |
| Dec 26, 2009 | 14.98% | — | 26.69% | 13.19% | — | 15.06% | 7.01% |
| Dec 27, 2008 | 14.77% | — | 14.40% | 9.48% | — | 15.15% | 5.56% |
| Dec 29, 2007 | 12.55% | — | 11.63% | 9.77% | — | 8.15% | 12.59% |
| Dec 30, 2006 | 12.97% | — | 6.74% | 6.86% | — | 12.21% | 12.74% |
| Dec 31, 2005 | 13.37% | — | 25.56% | 9.60% | — | 8.68% | 14.07% |
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., ROA, long-term trends, comparison to sector (consumer services)
| YUM! Brands Inc. | Consumer Services | |
|---|---|---|
| Dec 26, 2015 | 16.01% | 14.62% |
| Dec 27, 2014 | 12.59% | 15.50% |
| Dec 28, 2013 | 12.55% | 12.90% |
| Dec 29, 2012 | 17.72% | 16.48% |
| Dec 31, 2011 | 14.93% | 17.53% |
| Dec 25, 2010 | 13.92% | 15.57% |
| Dec 26, 2009 | 14.98% | 14.40% |
| Dec 27, 2008 | 14.77% | 13.50% |
| Dec 29, 2007 | 12.55% | 8.95% |
| Dec 30, 2006 | 12.97% | 12.01% |
| Dec 31, 2005 | 13.37% | 9.60% |
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., ROA, long-term trends, comparison to industry (consumer discretionary)
| YUM! Brands Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 26, 2015 | 16.01% | 6.25% |
| Dec 27, 2014 | 12.59% | 4.75% |
| Dec 28, 2013 | 12.55% | 5.52% |
| Dec 29, 2012 | 17.72% | 5.65% |
| Dec 31, 2011 | 14.93% | 9.48% |
| Dec 25, 2010 | 13.92% | 6.05% |
| Dec 26, 2009 | 14.98% | 4.67% |
| Dec 27, 2008 | 14.77% | 0.21% |
| Dec 29, 2007 | 12.55% | 2.85% |
| Dec 30, 2006 | 12.97% | 0.60% |
| Dec 31, 2005 | 13.37% | 3.80% |
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).