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13MAR201517272138
PART II
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
% B/(W) % B/(W)
2014 2013
2014 2013 2012 Reported Ex FX Reported Ex FX
Company sales $ 1,452 $ 1,474 $ 1,747 (2) (2) (16) (16)
Franchise and license fees and
income 411 395 362 4 4 9 9
Total revenues $ 1,863 $ 1,869 $ 2,109 (11) (11)
Restaurant profit $ 274 $ 287 $ 319 (5) (5) (10) (10)
Restaurant margin % 18.9% 19.5% 18.2% (0.6) ppts. (0.6) ppts. 1.3 ppts. 1.3 ppts.
G&A expenses $ 185 $ 206 $ 223 10 10 7 7
Operating Profit $ 480 $ 456 $ 435 5 5 5 5
2014 2013
System Sales Growth, reported 4% 4%
System Sales Growth, excluding FX 4% 4%
Same-Store Sales Growth % 3% 3%
% Increase
(Decrease)
Unit Count 2014 2013 2012 2014 2013
Franchise & License 5,273 5,157 4,933 2 5
Company-owned 926 891 1,044 4 (15)
6,199 6,048 5,977 2 1
2013 New Builds Closures Refranchised Acquired Other 2014
Franchise & License 5,157 209 (90) 3 (12) 6 5,273
Company-owned 891 27 (1) (3) 12 — 926
Total 6,048 236 (91) 6 6,199
2012 New Builds Closures Refranchised Acquired Other 2013
Franchise & License 4,933 152 (98) 178 (8) 5,157
Company-owned 1,044 27 (2) (178) — 891
Total 5,977 179 (100) (8) 6,048
Company Sales and Restaurant Profit
The changes in Company sales and Restaurant profit were as follows:
2014 vs. 2013
Store
Portfolio
Income / (Expense) 2013 Actions Other FX 2014
Company sales $ 1,474 $ (47) $ 25 $ $ 1,452
Cost of sales (424) 14 (21) (431)
Cost of labor (419) 14 (9) — (414)
Occupancy and other (344) 12 (1) (333)
Restaurant profit $ 287 $ (7) $ (6) $ $ 274
19.5% 18.9%
26 YUM! BRANDS, INC. - 2014 Form 10-K
Form 10-K