YUM! Brands Inc. (NYSE:YUM)

The financial data reveals distinct trends over the five-year period ending in 2015, indicating fluctuations in profitability and operational performance.

Net Income

Net income exhibited variability, rising from 1319 million USD in 2011 to a peak of 1597 million USD in 2012. It then declined considerably in 2013 and 2014, reaching a low of 1051 million USD before recovering to 1293 million USD in 2015. This pattern suggests challenges impacting net profitability during the middle years, followed by a partial rebound.

Earnings Before Tax (EBT)

EBT closely mirrored the net income trend but on a higher scale, starting at 1659 million USD in 2011 and rising to 2145 million USD in 2012. A decrease ensued in 2013 and 2014, dropping to 1427 million USD, and then increased again to 1787 million USD in 2015. This indicates that pre-tax profitability was affected by similar factors as net income, with partial recovery in the final year.

Earnings Before Interest and Tax (EBIT)

EBIT followed the overall earnings trends, but with slightly higher values than EBT, reflecting the impact of interest expenses. It increased from 1843 million USD in 2011 to 2314 million USD in 2012, then declined significantly over the next two years to 1579 million USD, before rising again to 1942 million USD in 2015. This suggests operational earnings were under pressure during 2013 and 2014 but showed some resilience toward the end of the period.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)

EBITDA showed a similar trend, increasing from 2471 million USD in 2011 to 2959 million USD in 2012. It then decreased through 2013 and 2014 to 2318 million USD and rose again to 2689 million USD in 2015. This measure of operating cash flow indicates that while earnings before non-cash charges softened mid-period, they recovered partially by 2015.

Overall, the data indicates a period of growth in 2012, followed by a downturn in the subsequent two years, with signs of recovery in 2015 across all key profitability metrics. The declines in 2013 and 2014 could have been influenced by operational or market challenges, while the rebound points to improved performance or cost management in the later period.

Enterprise value (EV)

The enterprise value exhibited fluctuations throughout the five-year period. Starting at approximately $32.4 billion in 2011, it experienced a slight decline in 2012 to around $31.4 billion, followed by a significant increase in 2013 to nearly $34.9 billion and a further rise in 2014 reaching about $35.8 billion. However, in 2015, the enterprise value declined to close to $31.7 billion. This pattern suggests volatility with a peak in 2014 and a subsequent downturn in the final year examined.

Earnings before interest, tax, depreciation and amortization (EBITDA)

EBITDA showed variation over the observed timeframe. Initially recorded at $2.47 billion in 2011, it increased notably to approximately $3.0 billion in 2012. Thereafter, a decline occurred in 2013 to about $2.54 billion, followed by a continued decrease in 2014 reaching roughly $2.32 billion. In 2015, EBITDA climbed again to around $2.69 billion. These movements highlight an initial growth phase with a peak in 2012, a trough in 2014, and a modest recovery in the last year.

EV/EBITDA Ratio

The EV/EBITDA ratio demonstrated variability reflecting changes in both enterprise value and EBITDA. Starting at a ratio of 13.1 in 2011, it decreased to 10.6 in 2012, indicating a possibly more favorable valuation relative to earnings. In 2013, the ratio increased substantially to 13.74 and further peaked at 15.43 in 2014, suggesting that the enterprise value was relatively high compared to EBITDA in those years. The ratio then declined to 11.79 in 2015, signaling a potential improvement in valuation metrics or earnings performance relative to enterprise value. This ratio movement indicates fluctuating valuation perspectives over the period with a notable peak in 2014.