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1111111 Yum! Brands: Segment sales and EBITDA analysis Yum! Brands, Inc. is a worldwide operator and franchisor of fast food restaurants, under the familiar brands

1111111 Yum! Brands: Segment sales and EBITDA analysis Yum! Brands, Inc. is a worldwide operator and franchisor of fast food restaurants, under the familiar brands of KFC, Pizza Hut, and Taco Bell. Segment revenues, operating income, and depreciation and amortization expense for Vum's operating segments are provided for a recent year as follows (in millions) China KFC 3,193 Sales Operating Income Depreciation and Amortization Expense $6,934 5713 1411 700 187 295 39 480 (9) Pizza Hut 1,148 Taco Bell 1,063 India 141 83 10 Yumi's segments include the three restaurant brands plus two emerging regional segments, China and India. In China and India, all three restaurant brands are combined. into the regional reporting a. Prepare a vertical analysis of the sales as a percent of total sales for the five segments. (Round percentages to the nearest whole percent.) Segment China KFC Pizza Hut Revenue Percentage of Total 6,934 Taco Bell India Total $ Which segment has the greatest percentage of total sales? b. Determine the earnings before interest, taxes, depreciation, and amortization (EBITDA) for the five segments. For those boxes in which you must enter subtractive or b. Determine the earnings before interest, taxes, depreciation, and amortization (EBITDA) for the five segments. For those boxes in which you must enter subtractive or negative numbers use a minus sign Depreciation and Segment Operating Income i Amortization Expense EBITDA (Operating Income Plus Depr. and Amort.) China XFC Pizza Hut Taco Bell India c. Determine the EBITDA as a percent of sales (EBITDA margin) for the five segments. Round percentages to the nearest whole percent. Segment EBITDA as a Percent of China KFC Pizza Hut Taco Bell India Segment Sales d. The three restaurant segments produce EBITDA margins nearing 30%, which would be considered strong. Interestingly, when these restaurants are operated out of China, the EBITDA margin[ 16%. Management should determine the reason for these results, as the EBITDA margin appears significantly different for China than it does for the three stand-alone restaurant segments. India is just emerging as a business segment and appears to be operating near break-even Check My Work more Check My Work uses remaining

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