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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, and Taco Bell. Segment
Yum! Brands, Inc. (YUM) is a worldwide operator and franchisor of fast-food restaurants, under the familiar brands of KFC, Pizza Hut, and Taco Bell. Segment revenue operating income, and depreciation and amortization expense for Yum!'s operating segments are provided for a recent year as follows (in millions): a. Prepare a vertical analysis of the sales as a percent of total sales for the three segments. Round percentages to the nearest whole percent. Which segment has the greatest percentage of total sales? b. Determine the earnings before interest, taxes, depreciation, and amortization (EBITDA) for the three segments. For those boxes in which you must enter subtractive negative numbers use a minus sign. c. Determine the EBITDA as a percent of sales (EBITDA margin) for the three segments. Round percentages to the nearest whole percent. d. Interpret the analysis in (c). 1. The three restaurant segments produce EBITDA margins above 30%, which would be considered strong. 2. KFC and Taco Bell segments produce EBITDA margins above 30%, which would be considered strong. 3. Taco Bell and KFC segments produce EBITDA margins above 30%, which would be considered strong
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