Analyze Yum! Brands by 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 revenues, operating income, and depreciation and amortization expense for Yum!'s operating segments are provided for a recent year as follows (in millions): Depreciation and Sales Operating Income Segment Amortization Expense $3,232 $874 $173 KFC Pizza Hut 1,111 370 36 Taco Bell 2,025 593 91 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. Segment Percentage of Total Revenue КFC Pizza Hut Taco Bell $ Total 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 or negative numbers use a minus sign. Depreciation and Segment Operating Income ЕBITDA Amortization Expense KFC $ Pizza Hut Taco Bell c. Determine the EBITDA as a percent of sales (EBITDA margin) for the three segments. Round percentages to the nearest whole percent. EBITDA as a Percent of Segment Segment Sales KFC Pizza Hut Taco Bell d. Interpret the analysis in (c). 1. The three restaurant segments produce 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 margins above 30%, which would be considered strong.
Analyze Yum! Brands by 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 revenues, operating income, and depreciation and amortization expense for Yum!'s operating segments are provided for a recent year as follows (in millions): Depreciation and Sales Operating Income Segment Amortization Expense $3,232 $874 $173 KFC Pizza Hut 1,111 370 36 Taco Bell 2,025 593 91 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. Segment Percentage of Total Revenue КFC Pizza Hut Taco Bell $ Total 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 or negative numbers use a minus sign. Depreciation and Segment Operating Income ЕBITDA Amortization Expense KFC $ Pizza Hut Taco Bell c. Determine the EBITDA as a percent of sales (EBITDA margin) for the three segments. Round percentages to the nearest whole percent. EBITDA as a Percent of Segment Segment Sales KFC Pizza Hut Taco Bell d. Interpret the analysis in (c). 1. The three restaurant segments produce 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 margins above 30%, which would be considered strong.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Analyze Yum! Brands by 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 revenues, operating income, and depreciation and amortization expense for Yum!'s operating segments are provided for a recent
year as follows (in millions):
Depreciation and
Sales
Operating Income
Segment
Amortization Expense
$3,232
$874
$173
KFC
Pizza Hut
1,111
370
36
Taco Bell
2,025
593
91
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.
Segment
Percentage of Total
Revenue
КFC
Pizza Hut
Taco Bell
$
Total
Which segment has the greatest percentage of total sales?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff01c02d5-8665-4d9f-9670-f6f8cdaf9e66%2Fe85361f9-46c3-43f8-9e0f-41fc206efb5a%2Fqjxt6rm.png&w=3840&q=75)
Transcribed Image Text:Analyze Yum! Brands by 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 revenues, operating income, and depreciation and amortization expense for Yum!'s operating segments are provided for a recent
year as follows (in millions):
Depreciation and
Sales
Operating Income
Segment
Amortization Expense
$3,232
$874
$173
KFC
Pizza Hut
1,111
370
36
Taco Bell
2,025
593
91
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.
Segment
Percentage of Total
Revenue
КFC
Pizza Hut
Taco Bell
$
Total
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 or negative numbers use a minus sign.
Depreciation and
Segment Operating Income
ЕBITDA
Amortization Expense
KFC
$
Pizza Hut
Taco Bell
c. Determine the EBITDA as a percent of sales (EBITDA margin) for the three segments. Round percentages to the nearest whole percent.
EBITDA as a Percent of
Segment
Segment Sales
KFC
Pizza Hut
Taco Bell
d. Interpret the analysis in (c).
1. The three restaurant segments produce
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
margins above 30%, which would be considered strong.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff01c02d5-8665-4d9f-9670-f6f8cdaf9e66%2Fe85361f9-46c3-43f8-9e0f-41fc206efb5a%2F4xmpqym.png&w=3840&q=75)
Transcribed Image Text:b. Determine the earnings before interest, taxes, depreciation, and amortization (EBITDA) for the three segments. For those boxes in which you
must enter subtractive or negative numbers use a minus sign.
Depreciation and
Segment Operating Income
ЕBITDA
Amortization Expense
KFC
$
Pizza Hut
Taco Bell
c. Determine the EBITDA as a percent of sales (EBITDA margin) for the three segments. Round percentages to the nearest whole percent.
EBITDA as a Percent of
Segment
Segment Sales
KFC
Pizza Hut
Taco Bell
d. Interpret the analysis in (c).
1. The three restaurant segments produce
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
margins above 30%, which would be considered strong.
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