YUM! Brands Inc. (NYSE:YUM)

Revenues

The revenues exhibited a generally increasing trend over the observed period from 2005 to 2015. Starting at $9,349 million in 2005, revenues grew steadily, peaking at $13,633 million in 2012. After this peak, there was a slight decline and fluctuation in the subsequent years, with revenues settling at $13,105 million in 2015. The overall growth from 2005 to 2015 indicates consistent expansion, though the plateauing and minor decreases after 2012 suggest potential market saturation or operational challenges.

Operating Profit

Operating profit showed a strong upward trajectory over the period. Beginning at $1,153 million in 2005, it increased steadily, reaching $2,294 million in 2012, which represents almost a doubling. Despite a decline to $1,557 million in 2014, operating profit rebounded to $1,921 million by 2015. The fluctuations after the peak in 2012 may reflect volatility in operating efficiency or cost management, but the overall increase points to improved profitability and operational leverage.

Net Income

Net income followed a pattern similar to operating profit, with consistent growth from $762 million in 2005 to a peak of $1,597 million in 2012. Subsequently, net income declined sharply to $1,051 million in 2014 before recovering to $1,293 million in 2015. The pronounced dip between 2012 and 2014 could indicate extraordinary expenses, tax impacts, or other non-operational factors affecting bottom-line performance. Despite this, net income in 2015 remained significantly higher than in earlier years, reflecting overall financial strength.

The analysis of the annual financial data reveals several notable trends in the asset structure over the period from 2005 to 2015.

Current Assets

Current assets exhibited a general upward trend from 2005 through 2011, increasing from $837 million to $2,321 million, which represents substantial growth in short-term resources available to the company. After reaching the peak in 2011, current assets declined somewhat, falling to $1,688 million by the end of 2015. This decline suggests either a reduction in liquidity or a strategic shift in asset allocation during the latter years.

Total Assets

Total assets showed consistent overall growth from 2005 to 2012, rising from $5,698 million to $9,011 million. The increase reflects the company's expansion and investment in both current and non-current assets. However, beginning in 2013, total assets experienced a slight decrease to $8,075 million in 2015. This downward trend may indicate asset divestment, depreciation exceeding capital expenditures, or a consolidation phase.

Comparative Trends

While both current and total assets grew significantly in the initial years, the plateau and subsequent decline in the later years highlight a possible shift in financial strategy or operational adjustments. The peak in current assets in 2011 corresponds temporally with the peak in total assets in 2012, after which both begin to decline, albeit total assets more gradually. This pattern may reflect responses to market conditions or internal restructuring efforts.

Overall Implications

The data suggest the company experienced a phase of asset accumulation and growth in the earlier period, followed by stabilization and moderate reduction in asset bases more recently. These trends may have implications for liquidity, investment capacity, and risk exposure, warranting further analysis of underlying causes and the impact on operational performance.

Current Liabilities

The current liabilities showed an overall increasing trend from 2005 to 2015. Starting at 1,605 million US dollars in 2005, the figure rose with some fluctuations, reaching a peak of 3,088 million US dollars in 2015. The most notable increment occurred between 2009 and 2010, where current liabilities increased from 1,653 to 2,448 million US dollars. Despite a decline from 2010 to 2012, the general trend remained upward.

Total Liabilities

Total liabilities increased steadily throughout the period. Beginning at 4,249 million US dollars in 2005, the amount rose each year with some slight declines or plateaus, reaching 7,100 million US dollars by 2015. The largest growth periods were between 2005 and 2008 and again from 2013 to 2015, reflecting a consistent rise over the decade.

Total Debt

Total debt followed a similar upward trajectory as total liabilities, starting at 1,860 million US dollars in 2005 and increasing to 3,977 million US dollars in 2015. The debt level saw strong increases between 2006 and 2008, peaking at 3,589 million in 2008 before declining somewhat between 2008 and 2012. However, it resumed growth after 2012 and reached the highest value in 2015.

Shareholders' Equity

Shareholders’ equity exhibited significant volatility during the period. Initially, the equity was relatively stable between 2005 and 2007, ranging around 1,139 to 1,449 million US dollars. A sharp decline occurred in 2008, resulting in a negative equity of -108 million US dollars, indicating financial stress during that year. Recovery followed, with equity improving markedly to 2,166 million US dollars by 2013. However, this was followed by a decline again in the following years, falling to 911 million US dollars by 2015. Overall, equity demonstrated a peak followed by deterioration in the later years.

Summary

The data reveals a consistent increase in liabilities and debt over the examined years, suggesting a growing financial leverage or increased borrowing. Current liabilities and total liabilities reflect a rise, highlighting increased short-term and total financial obligations. Meanwhile, shareholders' equity showed instability with a significant dip into negative territory in 2008, recovery afterward, and subsequent decline towards the end of the period. This pattern may indicate periods of financial stress and fluctuations in net assets relative to obligations. The increasing debt and liabilities alongside a fluctuating equity suggest a need for close monitoring of leverage and capital structure to ensure long-term financial health.

Operating Activities Cash Flow

The net cash provided by operating activities demonstrates an overall upward trend over the eleven-year period. It starts at 1,238 million USD in 2005, experiences a general increase with some fluctuations, and peaks at 2,294 million USD in 2012. Following this peak, there is a slight decrease, but the values remain relatively high, ending at 2,139 million USD in 2015. This upward trajectory indicates improved operational cash-generating capacity over time, reflecting potentially enhanced efficiency or profitability in core business operations.

Investing Activities Cash Flow

The net cash used in investing activities consistently reflects negative values throughout the period, indicative of continuous investments. The outflows increase notably from 345 million USD in 2005 to a peak outflow of 1,006 million USD in 2011, maintaining a similar magnitude in 2012. Subsequently, the cash outflows decrease moderately, ending at 682 million USD in 2015. This pattern suggests substantial capital expenditures or acquisitions were incurred particularly around 2011-2012, followed by a moderate scale-back of investment activities in later years.

Financing Activities Cash Flow

The net cash used in financing activities reveals considerable fluctuations with generally large negative cash flows, indicating repayments or reductions in financing obligations. Initially, the outflows decrease from 832 million USD in 2005 to 337 million USD in 2010. However, from 2011 onwards, the outflows intensify markedly, peaking at 1,716 million USD in 2012, and remaining substantially elevated through 2015, ending at 1,292 million USD. These trends suggest an aggressive repayment strategy or significant changes in financing structure during the latter part of the period.

Overall Cash Flow Insights

Throughout the period, the company consistently generated positive cash flows from operating activities, adequate to support its investing and financing needs. The increased investing outflows around 2011-2012 point to strategic expansion or asset purchases, while the enlarged financing outflows in the same period imply corresponding repayments or shifts in capital structure. The moderation in investing cash flow after 2012, juxtaposed with sustained high financing outflows, could indicate a shift toward deleveraging or returning capital to investors. The overall cash flow pattern reflects active management of investment and financing in alignment with operational cash generation capacity.

The financial data reveals several notable trends over the 11-year period ending in 2015.

Basic earnings per share (EPS)

Basic EPS shows a general upward trend from 1.33 USD in 2005, reaching a peak of 3.46 USD in 2012. Following this peak, there is a noticeable decline over the next two years, dropping to 2.37 USD by 2014, before recovering somewhat to 2.97 USD in 2015. This pattern indicates overall growth in profitability with some volatility in the later years.

Diluted earnings per share

Similar to basic EPS, diluted EPS steadily increases from 1.28 USD in 2005 to 3.38 USD in 2012. Afterward, it declines to 2.32 USD in 2014 and then modestly rebounds to 2.92 USD in 2015. The diluted EPS closely mirrors the basic EPS trend, suggesting consistency in earnings performance when accounting for potential dilution.

Dividend per share

Dividends per share demonstrate continuous growth throughout the period, rising from 0.23 USD in 2005 to 1.74 USD in 2015. The increase is steady without reversal, reflecting a commitment to returning value to shareholders and confidence in sustained cash flow generation.

In summary, earnings indicators show robust growth with a peak around 2012, followed by a short-term decline and partial recovery. Dividend payments, however, consistently increase, indicating a strategy focused on long-term shareholder returns despite fluctuations in earnings.