Yum Brands, Inc (YUM) is a worldwide operator and franchisor of fast food restaurants, under the familiar brands of KFC, Pizza Hut, Taco Bell, and Habit Burger Grill Segment revenues, operating income, and depreciation and amortization expense for Yum s operating segments are provided for a recent year as follows (in millions) Segment Sales Operating Income (Loss) Depreciation and Amortization Expense KFC $2,272 $922 $29 Pizza Hut 1,002 335 24 Taco Bell 2,031 696 56 Habit Burger Gril 347 (22) 25 Question Content Area a Prepare a vertical analysis of the revenue as a percent of total revenue for the four segments Round percentages to the nearest whole percent Segment Revenue Percentage of Total KFC Pizza Hut Taco Bell Habit Burger Grill Total Which segment has the greatest percentage of total sales Habit Burger Grill, KFC, Pizza Hut, Taco Bell Question Content Area b Determine the earnings before interest, taxes, depreciation, and amortization (EBITDA) for the four segments For those boxes in which you must enter subtractive or negative numbers use a minus sign Segment Operating Income (Loss) Depreciation and Amortization Expense EBITDA KFC fill in the blank 1 of 12$ fill in the blank 2 of 12$ fill in the blank 3 of 12$ Pizza Hut fill in the blank 4 of 12 fill in the blank 5 of 12 fill in the blank 6 of 12 Taco Bell fill in the blank 7 of 12 fill in the blank 8 of 12 fill in the blank 9 of 12 Habit Burger Grill fill in the blank 10 of 12 fill in the blank 11 of 12 fill in the blank 12 of 12 Question Content Area c Determine the EBITDA as a percent of segment revenue (EBITDA margin) for the four segments Round percentages to the nearest whole percent Segment EBITDA as a Percent of Segment Sales KFC fill in the blank 1 of 4 Pizza Hut fill in the blank 2 of 4 Taco Bell fill in the blank 3 of 4 Habit Burger Grill fill in the blank 4 of 4 Question Content Area d Interpret the analysis in (c) 1 The four restaurant segments produce EBITDA margins above 35 , which would be considered strong 2 KFC, Pizza Hut and Taco Bell segments produce EBITDA margins above 35 , which would be considered strong 3 KFC and Taco Bell segments produce EBITDA margins below 35 , which would be considered weak 4 Habit Burger Grill segment produce EBITDA margins above 35 , which would be considered strong

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Yum! Brands, Inc. (YUM) is a worldwide operator and franchisor of fast-food restaurants, under the familiar brands of KFC, Pizza Hut, Taco Bell, and Habit

Yum! Brands, Inc. (YUM) is a worldwide operator and franchisor of fast-food restaurants, under the familiar brands of KFC, Pizza Hut, Taco Bell, and Habit Burger Grill. Segment revenues, operating income, and depreciation and amortization expense for Yum!s operating segments are provided for a recent year as follows (in millions):

Segment	Sales	Operating Income (Loss)	Depreciation and Amortization Expense
KFC	$2,272	$922	$29
Pizza Hut	1,002	335	24
Taco Bell	2,031	696	56
Habit Burger Gril	347	(22)	25

Question Content Area

a. Prepare a vertical analysis of the revenue as a percent of total revenue for the four segments. Round percentages to the nearest whole percent.

Segment	Revenue	Percentage of Total
KFC
Pizza Hut
Taco Bell
Habit Burger Grill
Total

Which segment has the greatest percentage of total sales?

Habit Burger Grill, KFC, Pizza Hut, Taco Bell

Question Content Area

b. Determine the earnings before interest, taxes, depreciation, and amortization (EBITDA) for the four segments. For those boxes in which you must enter subtractive or negative numbers use a minus sign.

Segment	Operating Income (Loss)	Depreciation and Amortization Expense	EBITDA
KFC	fill in the blank 1 of 12$	fill in the blank 2 of 12$	fill in the blank 3 of 12$
Pizza Hut	fill in the blank 4 of 12	fill in the blank 5 of 12	fill in the blank 6 of 12
Taco Bell	fill in the blank 7 of 12	fill in the blank 8 of 12	fill in the blank 9 of 12
Habit Burger Grill	fill in the blank 10 of 12	fill in the blank 11 of 12	fill in the blank 12 of 12

Question Content Area

c. Determine the EBITDA as a percent of segment revenue (EBITDA margin) for the four segments. Round percentages to the nearest whole percent.

Segment	EBITDA as a Percent of Segment Sales
KFC	fill in the blank 1 of 4%
Pizza Hut	fill in the blank 2 of 4%
Taco Bell	fill in the blank 3 of 4%
Habit Burger Grill	fill in the blank 4 of 4%

Question Content Area

d. Interpret the analysis in (c). 1. The four restaurant segments produce EBITDA margins above 35%, which would be considered strong. 2. KFC, Pizza Hut and Taco Bell segments produce EBITDA margins above 35%, which would be considered strong. 3. KFC and Taco Bell segments produce EBITDA margins below 35%, which would be considered weak. 4. Habit Burger Grill segment produce EBITDA margins above 35%, which would be considered strong.