Financial Analysis of Yum Brands - 1441 Words

A Financial Analysis of Yum! Brands, Inc Restaurants are, and will continue to be, an extremely profitable business. As a result, shareholders who have interest in brands such as McDonalds and Starbucks need not to worry about negative implications for the food giants compared to more risky industries. One company in particular, Yum! Brands (YUM), is another brand investors should become familiar with. Consumers may recognize the more specific stores the company owns such as Taco Bell and Pizza Hut, but investors should realize the sales and earnings growth associated with this organization. In addition, while there are many companies in the restaurant industry, Yum not only rings familiar with consumers like Starbucks, but Yum†¦show more content†¦To justify this claim, during the past twelve months, Yum received a revenue figure, according to Reuters, of $9.56 billion. This number was a 5.05% increase compared to the previous year number. While this increase in margin was a bit below the average year-to-year incr ease of 6.58%, the difference in growth decline was only a 23% difference. Other companies like Brinker saw a 43% deceleration during this same time period. In addition, while some investors may critique the industry 11.31% growth in sales during the past to Yums lower numbers, it is also important to realize that Yum supports the seconds highest sales figure in its industry, and appreciation of revenue growth will be much difficult than smaller-capitalization companies to come-by. This is in addition to the fact that many lower-revenue companies in this industry are actually seeing negative sales growth (not deceleration) during the same time frame as the aforementioned analysis. With these thoughts on sales at hand, these numbers can be used at the broadest of levels to illustrate that the steady increase and influx of money into Yum over its career has aided in the appreciation of its share price. Since 2003, not once has Yum seen a calendar year decrease in price. This comes wit h a 25% appreciation in 2006 and a 12% escalation so far in 2007--despite the recent economic turmoil. These sales and share price indications illustrate that Yum will fair veryShow MoreRelatedYum Brands Financial Statement Analysis2856 Words   |  12 PagesBackground Yum Brands Incorporated is the world’s largest fast-food, or quick-service restaurant (QSR), company in terms of restaurants, which numbered over 37,000 at the end of 2010. It currently operates five restaurant chains, but by the end of 2011, that number will decrease to three: KFC, Pizza Hut, and Taco Bell. The remaining two chains, AW and Long John Silver’s, will be sold in the 4th quarter of 2011 to companies formed by their franchise holders. As of November, 2011, Yum is in theRead MoreEssay on Financial Analysis Report Yum! Brands4261 Words   |  18 PagesFinancial Analysis Report (FAR) YUM! Brands, Inc. 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