YUM! Brands Inc. (NYSE:YUM)

The financial data indicates several notable trends over the eleven-year period. Net income showed a generally upward trajectory from 2005 through 2012, increasing from $762 million to a peak of $1,597 million. However, after 2012, net income declined sharply, falling to $1,091 million in 2013 and remaining relatively stable but lower than the peak in the following years, ending at $1,293 million in 2015. This pattern suggests strong growth until 2012, followed by a period of decreased profitability or operational challenges.

Shareholders' equity exhibited significant volatility during the period. Initially, it decreased gradually from $1,449 million in 2005 to $1,139 million in 2007, then turned negative to -$108 million in 2008, signaling a potential financial distress or write-down during that year. Equity rebounded sharply in 2009 and continued to grow to a peak of $2,166 million in 2013. Subsequently, shareholders' equity declined substantially, reaching $911 million by 2015. This fluctuation highlights periods of financial instability, followed by recovery and then a decline again, possibly reflecting changes in retained earnings, capital structure, or asset revaluations.

Return on equity (ROE) figures reflect both the profitability and equity trends. ROE was very high during the earlier years, ranging from 52.59% to a peak of 104.49% in 2009, emphasizing strong earnings performance relative to equity. Notably, the ROE value is missing for 2008, a year in which equity was negative. After peaking, ROE remained elevated above 70% for several years until a decline to 50.37% in 2013. However, in 2015, ROE surged to 141.93%, which may reflect the combination of higher net income relative to reduced equity during that year. The variations in ROE closely correspond with the trends in shareholders' equity, where declines or negative equity resulted in higher or undefined ROE values.

Overall, the analysis reveals a company with periods of strong profitability and equity growth, punctuated by episodes of financial strain marked by negative equity in 2008 and equity declines after 2013. The interplay between net income and shareholders' equity drove significant fluctuations in ROE, underscoring the importance of considering both profitability and capital base in the financial assessment.