Solution-Prepare a vertical analysis of the sales

Prepare a vertical analysis of the sales

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Reference no: EM132763850

Problem - 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):

Segment	Sales	Operating Income	Depreciation and Amortization Expense
KFC	$3,232	$874	$173
Pizza Hut	1,111	370	36
Taco Bell	2,025	593	91

Required -

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.

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).

Reference no: EM132763850

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Prepare a vertical analysis of the sales

Reference no: EM132763850

Reference no: EM132763850

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