YUM! Brands Inc. (NYSE:YUM)

Operating Profit

The operating profit experienced a notable decline from 2012 to 2014, decreasing from $1,015 million to $713 million. However, in 2015, there was a slight recovery, with operating profit increasing to $757 million. Despite this improvement, the 2015 figure remained below the 2012 peak.

Revenues

Revenues showed relative stability over the four-year period from 2012 to 2015, fluctuating marginally around the $6,900 million mark. The highest revenue was recorded in 2014 at $6,934 million, followed by a slight decrease to $6,909 million in 2015.

Segment Profit Margin

The segment profit margin followed a downward trend from 2012 through 2014, dropping from 14.71% to 10.28%. In 2015, the margin improved slightly to 10.96%, reflecting a moderate recovery. Overall, the profit margin declined substantially over the observed period.

Summary

Overall, while revenues remained relatively stable, profitability metrics—both operating profit and segment profit margin—declined significantly from 2012 to 2014, with a modest upward trend noted in 2015. This suggests pressures on cost efficiency or pricing during the middle years, partially alleviated by the end of the period analyzed.

Operating Profit

The operating profit for the segment showed a steady increase from 2012 through 2014, rising from US$626 million to US$708 million. However, in 2015, there was a slight decline, with operating profit decreasing to US$677 million. This indicates a general upward trend in profitability over the four-year period, albeit with a minor drop in the final year reported.

Revenues

Revenues exhibited modest growth from 2012 to 2014, increasing from US$3,014 million to US$3,193 million. However, in 2015, revenues experienced a downturn, falling to US$2,948 million. This decline in revenues in the last year corresponds with the reduction observed in operating profit, suggesting possible challenges in maintaining sales levels during that period.

Segment Profit Margin

The segment profit margin demonstrated a consistent improvement each year, rising from 20.77% in 2012 to 22.96% in 2015. This upward trend in profit margin indicates increasing efficiency or improved cost management within the segment, contributing positively to profitability despite the revenue decline in 2015.

Operating Profit

The operating profit showed an initial increase from 320 million US dollars in 2012 to a peak of 339 million US dollars in 2013. However, it declined in subsequent years, falling to 295 million US dollars in 2014 and further to 289 million US dollars in 2015. This suggests a reduction in operational efficiency or increased costs after 2013.

Revenues

Revenues experienced a significant decrease from 1,510 million US dollars in 2012 to 1,147 million US dollars in 2013. From 2013 onwards, revenues stabilized around the 1,145 million US dollar mark through 2014 and 2015. This indicates a sharp contraction in revenue early in the period followed by a period of relative stagnation.

Segment Profit Margin

The segment profit margin showed an increase from 21.19% in 2012 to a high of 29.56% in 2013. Following this peak, the margin declined to 25.7% in 2014 and slightly further to 25.24% in 2015. Despite the decline after 2013, the margin levels remained higher than the 2012 base, suggesting improved profitability relative to revenue compared to the initial year.

Operating Profit

The operating profit shows a consistent upward trend from 2012 to 2015. Starting at 435 million USD in 2012, it increased each year, reaching 539 million USD in 2015. This reflects a sustained improvement in profitability over the analyzed period.

Revenues

Revenues experienced a decline from 2109 million USD in 2012 to 1869 million USD in 2013. After this decrease, revenues remained relatively stable in 2014 at 1863 million USD, followed by an increase to 1988 million USD in 2015. Despite the initial drop, the recovery towards the end of the period suggests a positive revenue trend.

Segment Profit Margin

The segment profit margin steadily improved throughout the period examined. It rose from 20.63% in 2012 to 27.11% in 2015, indicating enhanced efficiency and profitability relative to revenues. The continuous expansion of this margin signifies successful cost management or pricing strategies.

Revenues

The revenue figures demonstrate an overall upward trend from 2012 to 2014, rising from 102 million USD to 141 million USD. However, in 2015, the revenues declined to 115 million USD, indicating a reversal from the previous growth trajectory.

Operating Profit

Operating profit remained negative throughout the periods shown, with the margin of losses fluctuating. Starting at a loss of 1 million USD in 2012, it deepened considerably to 15 million USD in 2013, improved somewhat to 9 million USD in 2014, but worsened again to a loss of 19 million USD in 2015. This volatility signifies ongoing challenges in achieving profitability.

Segment Profit Margin

The segment profit margin closely follows the trend in operating profit, exhibiting negative values in all years. The largest margin loss occurred in 2015 at -16.52%, reflecting the most significant operating efficiency issues or cost pressures during the timeframe. The margin improved somewhat in 2014 to -6.38% but remained substantially negative, highlighting persistent operational difficulties in the segment.

Overall Analysis

The data indicates a segment experiencing escalating losses despite initial revenue growth. The deterioration in operating profit and margin in 2015 coupled with the drop in revenue suggests increased costs or reduced sales efficiency negatively impacting financial performance. The fluctuating margins and operating losses signal the need for strategic reassessment to improve profitability and stabilize revenue streams in future periods.

Operating Profit

The operating profit exhibits a fluctuating trend over the presented periods. Starting from a value of 1,015 million US dollars in 2012, it declined to 777 million in 2013, further decreased to 713 million in 2014, and then rose slightly to 757 million in 2015. This indicates a peak in 2012 followed by a downward adjustment with a mild recovery towards the end of the period.

Identifiable Assets

Identifiable assets demonstrate a declining pattern during the observed years. Beginning at 3,720 million US dollars in 2013, the amount dropped significantly to 3,208 million in 2014 and decreased further to 3,150 million in 2015. The trend suggests a reduction in asset base for the segment over time.

Segment Return on Assets (ROA)

Segment ROA shows a consistent upward trend from 2013 to 2015. It increased from 20.89% in 2013 to 22.23% in 2014, and further to 24.03% in 2015. This indicates improving efficiency in generating profit from the assets employed within the segment despite the decreasing asset base.

Operating Profit

The operating profit showed a steady increase from 626 million US dollars in 2012 to a peak of 708 million US dollars in 2014. However, there was a slight decline in 2015, with profit decreasing to 677 million US dollars, indicating a potential slowdown in growth or increased costs during that year.

Identifiable Assets

Identifiable assets were recorded from 2013 onwards, starting at 2,452 million US dollars and decreasing annually to 2,331 million in 2014 and further to 2,181 million in 2015. This declining trend suggests asset divestitures, depreciation, or impairments occurring over the period.

Segment Return on Assets (ROA)

The segment ROA showed consistent improvement over the years measured, increasing from 26.47% in 2013 to 30.37% in 2014 and finally reaching 31.04% in 2015. This upward trend indicates enhanced efficiency in utilizing assets to generate operating profit despite the decline in absolute asset values.

Operating Profit

The operating profit for the segment showed an initial increase from 320 million USD in 2012 to 339 million USD in 2013, representing growth during this period. However, from 2013 onwards, operating profit declined to 295 million USD in 2014, and further slightly decreased to 289 million USD in 2015. This indicates a downward trend in profitability after the peak in 2013.

Identifiable Assets

Identifiable assets data is only available from 2013 onwards. The segment's assets increased modestly from 703 million USD in 2013 to 711 million USD in 2014, followed by a slight decline to 707 million USD in 2015. This suggests a relatively stable asset base with minor fluctuations during this period.

Segment Return on Assets (ROA)

The return on identifiable assets decreased consistently from 48.22% in 2013 to 41.49% in 2014, and further to 40.88% in 2015. This decline in ROA reflects a reduction in operational efficiency or profitability relative to the asset base over these years.

Overall Insights

The segment experienced growth in operating profit initially but faced a decline starting in 2013. Despite the slight increase in assets from 2013 to 2014, the decreasing ROA indicates that the segment has become less efficient in generating profit from its assets. The combination of falling operating profit and declining ROA suggests potential challenges in maintaining profitability and operational efficiency in recent years.

Operating Profit

The operating profit exhibited a generally increasing trend from 2012 to 2015. Starting at 435 million US dollars in 2012, it rose moderately to 456 million in 2013 and continued to increase to 480 million in 2014. By 2015, the operating profit reached 539 million, indicating a steady enhancement in profitability over the observed period.

Identifiable Assets

The identifiable assets showed consistent growth from 2013 through 2015. Beginning at 1017 million US dollars in 2013, the assets increased to 1084 million in 2014 and further to 1127 million in 2015. This upward trend suggests ongoing investment or asset accumulation during these years.

Segment Return on Assets (ROA)

The segment ROA remained relatively stable between 2013 and 2014, showing a slight decline from 44.84% to 44.28%. However, in 2015, ROA improved noticeably to 47.83%. This pattern implies that the efficiency in generating profits from the identifiable assets slightly dipped before improving significantly in the final year reported.

Operating Profit

The operating profit exhibits a consistently negative trend from 2012 to 2015. The segment recorded a loss of 1 million US dollars in 2012, which worsened to 15 million in 2013. Although there was a slight improvement in 2014 with a loss reducing to 9 million, the operating profit declined again in 2015, resulting in the largest loss over the observed period at 19 million US dollars.

Identifiable Assets

Identifiable assets were first reported in 2013 at 99 million US dollars and increased to 118 million in 2014. However, in 2015, there was a significant reduction to 84 million US dollars, indicating a decline in asset base during the last year of the reported period.

Segment Return on Assets (ROA)

The segment ROA, available from 2013 onwards, shows negative returns throughout the period. The ROA was -15.15% in 2013, improved to -7.63% in 2014, indicating a better asset utilization despite remaining negative. However, this trend reversed in 2015 with ROA deteriorating sharply to -22.62%, reflecting decreased profitability relative to assets.

Revenue Trends

The revenues for the segment demonstrated a generally stable trend from 2012 to 2015, with values consistently near the 6.9 billion US dollars mark. Specifically, revenue increased slightly from 6,898 million in 2012 to 6,934 million in 2014, followed by a marginal decrease to 6,909 million in 2015. This indicates a relatively flat revenue performance over the observed period, suggesting limited growth or contraction within the segment’s sales or service activities.

Identifiable Assets

The identifiable assets for the segment showed a declining trend from 2013 to 2015. Starting at 3,720 million US dollars in 2013, the assets decreased to 3,208 million in 2014, and then further down to 3,150 million in 2015. This downward movement in asset base may reflect asset disposals, impairments, or operational efficiencies leading to reduced investment in identifiable assets.

Segment Asset Turnover

Segment asset turnover, which measures the efficiency in using assets to generate revenues, exhibited an improving trend during 2013 to 2015. The ratio rose from 1.86 in 2013 to 2.16 in 2014, and further to 2.19 in 2015. This enhancement implies that despite the reduction in assets, the segment improved its capability to generate sales from each dollar of assets, indicating better operational efficiency or asset management over time.

Revenue Trends

Revenues exhibit a generally stable pattern from 2012 through 2015, with amounts ranging from approximately 2,948 to 3,193 million US dollars. After an increase from 3,014 million in 2012 to a peak of 3,193 million in 2014, revenues decreased to 2,948 million in 2015. This indicates a slight decline towards the end of the period following a growth phase.

Identifiable Assets

The identifiable assets of the segment show a consistent downward trend from 2013 through 2015. Starting at 2,452 million US dollars in 2013, assets decreased to 2,331 million in 2014 and further declined to 2,181 million by 2015. This reduction suggests ongoing asset divestiture, depreciation, or other factors reducing asset base over the observed period.

Segment Asset Turnover

Segment asset turnover ratio presents an improving trend, increasing from 1.24 in 2013 to 1.37 in 2014 and slightly decreasing to 1.35 in 2015. The rise in the ratio from 2013 to 2014 implies enhanced efficiency in utilizing assets to generate revenue, although the marginal decline in 2015 still reflects a relatively high level of asset utilization compared to earlier years.

Overall Insights

The combination of slightly declining revenues and consistently decreasing identifiable assets alongside a generally improving asset turnover ratio suggests that the segment has been managing to utilize a smaller asset base more efficiently to generate revenue. However, the dip in revenue in 2015 may warrant further analysis to understand influencing factors. The efficiency gains appear to partially offset the impact of the reduced asset base on revenues.

Revenue Trends

Revenues exhibit an initial data gap for 2011, followed by a peak at 1,510 million US dollars in 2012. Subsequently, there is a noticeable decline in revenues over the following years, with figures stabilizing around 1,145 million US dollars in 2015. This reflects a significant drop from the 2012 high, indicating challenges in maintaining top-line growth.

Identifiable Assets

The identifiable assets data begin from 2013, showing a slight increase from 703 million US dollars in 2013 to 711 million in 2014, followed by a marginal reduction to 707 million in 2015. Overall, the asset base has remained relatively stable with minimal fluctuations during these years.

Segment Asset Turnover

The segment asset turnover ratio is available from 2013 onwards, demonstrating high efficiency in asset utilization with values consistently above 1.6. The ratio peaked at 1.63 in 2013, decreased slightly to 1.61 in 2014, and rebounded modestly to 1.62 in 2015. This suggests stable operational efficiency in generating revenues from assets despite the declining revenue trend.

Summary Insight

The division experienced a notable revenue downturn after 2012, while the asset base remained largely unchanged. Despite the revenue decline, asset utilization efficiency stayed consistently strong, suggesting effective management of assets. Future focus may be warranted on reversing the revenue decline while maintaining asset productivity.

Revenues

The revenues exhibit a somewhat fluctuating trend over the periods observed. Starting from a value of 2109 million US dollars in 2012, revenues declined to 1869 million US dollars in 2013, then remained relatively stable at 1863 million US dollars in 2014 before increasing to 1988 million US dollars in 2015. This indicates a dip after 2012, followed by a partial recovery by 2015, yet the revenues did not return to the peak noted in 2012.

Identifiable Assets

Identifiable assets data begin from 2013, with a value of 1017 million US dollars. Thereafter, there is a consistent upward trajectory, with assets increasing to 1084 million US dollars in 2014 and further to 1127 million US dollars in 2015. This steady asset growth suggests ongoing investment or accumulation of resources within the segment during these years.

Segment Asset Turnover

The segment asset turnover ratio, available from 2013 onward, shows a decline from 1.84 in 2013 to 1.72 in 2014, followed by a slight increase to 1.76 in 2015. This pattern suggests that the efficiency with which the segment uses its assets to generate revenue decreased initially but experienced modest improvement in the final year examined.

Revenues

Revenues exhibited an overall upward trend from 2012 through 2014, increasing from 102 million US dollars in 2012 to a peak of 141 million US dollars in 2014. However, there was a notable decline in 2015, with revenues decreasing to 115 million US dollars. This suggests that after a period of growth, the division experienced a reduction in sales or operational activity in the last reported period.

Identifiable Assets

Identifiable assets data is available starting in 2013, initially recorded at 99 million US dollars. These assets increased to 118 million US dollars by the end of 2014, indicating an expansion of asset base or investment during that year. In 2015, the assets decreased significantly to 84 million US dollars, reflecting a possible divestment, impairment, or revaluation that reduced the asset base.

Segment Asset Turnover

The segment asset turnover ratio provides insight into the efficiency of asset utilization. This ratio rose from 1.19 in 2014 to 1.37 in 2015, suggesting an improvement in revenue generated per unit of asset despite the decrease in total assets. This improvement implies more effective use or management of assets during that period.

Capital Spending

There is a slight declining trend in capital spending from 2012 to 2015. After reaching 655 million USD in 2012, capital expenditures decreased to 568 million USD in 2013, followed by further reductions to 525 million USD in 2014 and 512 million USD in 2015. This indicates a gradual reduction in investment in fixed assets or infrastructure over the observed period.

Depreciation and Amortization

The depreciation and amortization expense has shown a steady increase from 337 million USD in 2012 to 425 million USD in 2015. This upward trend suggests growing amortizable assets or accelerated depreciation, possibly reflecting prior investments in capital expenditures becoming fully operational and contributing to increased expense recognition.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation consistently decreased from 1.94 in 2012 to 1.2 in 2015. This declining ratio confirms that capital spending has been tapering off relative to depreciation expenses, indicating the segment’s investment in new assets is not keeping pace with asset wear and tear or amortization, potentially reflecting a more conservative capital deployment strategy or stabilization of the asset base.

Capital Spending

Capital spending data is not available for the year ending December 31, 2011. From 2012 to 2015, capital spending showed an initial increase, rising from 259 million USD in 2012 to 294 million USD in 2013. After this peak, capital spending declined slightly to 273 million USD in 2014 and remained stable at the same level in 2015.

Depreciation and Amortization

Depreciation and amortization also lack data for 2011. From 2012 to 2015, there was a noticeable increase in these expenses from 161 million USD in 2012 to 190 million USD in 2013. Subsequently, there was a gradual decrease, with values falling to 187 million USD in 2014 and further down to 176 million USD by 2015.

Segment Capital Expenditures to Depreciation Ratio

The ratio of segment capital expenditures to depreciation, which is an indicator of the company's reinvestment relative to asset consumption, was not reported in 2011. In 2012, this ratio stood at 1.61, indicating that capital expenditures significantly exceeded depreciation. The ratio slightly decreased over the next two years to 1.55 in 2013 and 1.46 in 2014, reflecting a reduction in capital investment relative to depreciation. In 2015, the ratio increased again to 1.55, suggesting renewed emphasis on capital investment relative to asset depreciation.

Overall Trends and Insights

Between 2012 and 2015, capital spending remained relatively high and stable around the mid-200 million USD range, showing a peak in 2013 followed by a moderate decrease and stabilization. Depreciation and amortization followed a somewhat opposite trend, peaking in 2013 before gradually declining through 2015. The capital expenditures to depreciation ratio fluctuated but consistently indicated capital spending was higher than depreciation, suggesting ongoing investment to support or expand the asset base despite some moderation in the later years. These trends illustrate a period of active capital investment with some optimization of asset utilization and possible efficiency improvements reflected in the decreasing depreciation expense over time.

Capital Spending

Capital spending exhibited a relatively stable pattern from 2012 through 2015, fluctuating between 52 million and 62 million US dollars. After an increase to 62 million in 2014, there was a slight decline to 54 million in 2015, indicating a moderation in investment activities towards the end of the observed period.

Depreciation and Amortization

The depreciation and amortization figures decreased significantly in 2013 to 36 million from 55 million in 2012. Following this drop, the values showed a modest upward trend, increasing to 39 million in 2014 and 40 million in 2015. This suggests an adjustment in asset valuation or the timing of amortization expenses after 2012.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation increased steadily from 0.95 in 2012 to a peak of 1.59 in 2014, before slightly declining to 1.35 in 2015. This upward trend until 2014 implies that investment levels were growing in relation to asset depreciation, reflecting possibly enhanced focus on capital expansion or renewal. The subsequent decrease in 2015 represents a relative slowdown in capital investment compared to the depreciation expense in that year.

Overall Trends

Between 2012 and 2015, capital spending remained generally consistent with a notable peak in 2014, while depreciation and amortization first decreased sharply and then stabilized with minor increases. The capital-to-depreciation ratio trend indicates a period of increasing investment intensity relative to depreciation, peaking in 2014, followed by a partial normalization in 2015. These patterns suggest a phase of expanding asset investment and capital renewal followed by consolidation.

The financial data for the Taco Bell Division over the five-year period from 2011 to 2015 reveals several notable trends regarding capital spending, depreciation and amortization, and the ratio of segment capital expenditures to depreciation.

Capital Spending

Capital expenditures show variability across the years. Starting with no data for 2011, capital spending was $113 million in 2012, followed by a slight decrease to $100 million in 2013. In 2014, there was a significant increase to $143 million, the highest figure in the observed period. This was subsequently followed by a decline to $116 million in 2015. The pattern indicates fluctuating investment levels in capital assets, with a notable peak in 2014.

Depreciation and Amortization

Depreciation and amortization expenses decreased from $98 million in 2012 to $84 million in 2013. These expenses remained relatively stable in 2014 at $83 million before increasing modestly to $88 million in 2015. The initial decline followed by stability and then a slight increase suggests some changes in the asset base and capital structure over time.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation reveals the relationship between investments in new assets and the consumption or aging of existing assets. This ratio was 1.15 in 2012 and increased slightly to 1.19 in 2013. In 2014, the ratio rose substantially to 1.72, indicating that capital investments greatly outpaced depreciation expenses that year. The ratio then decreased to 1.32 in 2015, still above the earlier years but reflecting a reduction from the 2014 peak. This trend suggests that 2014 was a year of aggressive asset investment relative to asset consumption, followed by a moderation in 2015.

Overall, the Taco Bell Division exhibited dynamic capital management over the period, marked by a peak in capital spending and investment intensity in 2014, which may have implications for asset base growth and future depreciation trends. The relatively steady depreciation expenses alongside fluctuating capital expenditures and ratios indicate ongoing asset renewal and expansion efforts with varying intensity.

The capital spending of the segment exhibited significant fluctuations over the examined periods. Initially, there was a substantial increase from an unreported figure in 2011 to 18 million US dollars in 2012, followed by a peak at 31 million US dollars in 2013. Subsequently, capital spending declined to 21 million US dollars in 2014 and experienced a sharp reduction to 7 million US dollars in 2015.

Depreciation and amortization showed a more steady upward trend. Starting from an unreported figure in 2011, this expense increased consistently from 6 million US dollars in 2012 to 9 million in 2013, then rising modestly to 10 million US dollars in both 2014 and 2015.

The ratio of segment capital expenditures to depreciation reveals a distinct downward trend after reaching a peak in 2013. This ratio increased from 3 in 2012 to 3.44 in 2013, indicating a period where capital investment significantly outpaced depreciation. However, there was a notable decline to 2.1 in 2014, followed by a further drop to 0.7 in 2015, suggesting a reduction in the rate of capital spending relative to asset depreciation over these years.

Overall, the data suggests a phase of increased capital investment coinciding with rising depreciation expenses around 2012-2013, followed by a contraction in capital expenditure relative to depreciation in the subsequent years, which may reflect a strategic shift towards asset utilization or cost control in the segment.