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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
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 Yum!'s operating segments are provided for a recent year as follows (in millions): Sales Operating Income Depreciation and Amortization Expense China $6,934 $713 $411 KFC 3,193 708 187 Pizza Hut 1,148 295 39 Taco Bell 1,863 480 83 India 141 (9) 10 Yum!'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 Revenue Percentage of Total China $ % KFC % Pizza Hut % Taco Bell % India % Total $ % 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. Segment Operating Income Depreciation and Amortization Expense EBITDA (Operating Income Plus Depr. and Amort.) China KFC 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 Segment Sales China % KFC % Pizza Hut % Taco Bell % India %
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