Must-know: Yum! Brands’ quarterly performance by segments

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Must-know: Yum! Brands quarterly overview 2Q14 (Part 2 of 13)

(Continued from Part 1)

Overall performance

Overall revenues for Yum! Brands grew to $3.2 billion, a 10.33% year-over-year (or YoY) growth, in the 4Q14 compared to $2.9 billion in the 4Q13. With global operations, Yum! Brands breaks down its operations into three geographic segments as seen below. Comparable sales is an important valuation metric that’s discussed in the next part of the series.

China’s revenues

Revenues from China’s division amounted to $1.7 billion as of the 2Q14, which was about half of the total revenues. This division is the main focus of Yum! Brands. It’s also the fastest growing in terms of sales. Compared to the second quarter a year ago, sales for this division grew by 18%. McDonald’s (MCD) groups China into  the Asia/Pacific, Middle East, and Africa (or APMEA) segment.

U.S. and international revenues

Revenues from the U.S. and international division amounted to $1.4 billion as of the 2Q14, which was 45% of the total revenues for the quarter. The sales for this division were negatively impacted by Taco Bell and Pizza Hut, both of which experienced a sales decline of 2.87% and 0.74%, respectively. Burger King (BKW) groups the U.S. in the U.S. and Canada segment.

India’s revenues

Revenues from India’s division amounted to $37 million as of the 2Q14, which is only 1% of the total revenues for the quarter. Compared to the second quarter last year, sales for this division grew by 12%.

When we talk about performance, it’s very important for an investor to know how Yum! Brands performed in terms of system wide sales and same store sales as discussed in the next section. An investor looking to invest in the restaurant industry can do so by investing in exchange-traded funds (or ETFs) like the PowerShares Dynamic Leisure and Entertainment ETF (PEJ) and the PowerShares Dynamic Food and Beverage ETF (PBJ).

Continue to Part 3

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