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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? 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.

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter21: Variable Costing For Management analysis
Section: Chapter Questions
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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?
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.
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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