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YUM! BRANDS, INC.-2015 Form10-K 25
Form 10-K
PART II
ITEM7Management’s Discussion and Analysis of Financial Condition and Results of Operations
Taco Bell Division
The Taco Bell Division has 6,400 units, the vast majority of which are in the U.S. The Company owns 15% of the Taco Bell units in the U.S., where the
brand has historically achieved high restaurant margins and returns. For 2015, Taco Bell targeted about 150 net new units, low-single-digit same-store
sales growth and Operating Profit growth of 6%.
% B/(W) % B/(W)
2015 2014
2015 2014 2013 Reported Ex FX Reported Ex FX
Company sales $ 1,541 $ 1,452 $ 1,474 6 6 (2) (2)
Franchise and license fees and income 447 411 395 9 9 4 4
Total revenues $ 1,988 $ 1,863 $ 1,869 7 7 — —
Restaurant profit $ 343 $ 274 $ 287 25 25 (5) (5)
Restaurant margin % 22.3% 18.9% 19.5% 3.4 ppts. 3.4 ppts. (0.6) ppts. (0.6) ppts.
G&A expenses $ 228 $ 185 $ 206 (23) (23) 10 10
Operating Profit $ 539 $ 480 $ 456 12 12 5 5
2015 2014
System Sales Growth, reported 8% 4%
System Sales Growth, excluding FX 8% 4%
Same-Store Sales Growth % 5% 3%
% Increase
(Decrease)
Unit Count 2015 2014 2013 2015 2014
Franchise & License 5,506 5,273 5,157 4 2
Company-owned 894 926 891 (3) 4
6,400 6,199 6,048 3 2
2014 New Builds Closures Refranchised Acquired Other 2015
Franchise & License 5,273 239 (80) 65 — 9 5,506
Company-owned 926 37 (4) (65) — — 894
Total 6,199 276 (84) — — 9 6,400
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
Company Sales and Restaurant Profit
The changes in Company sales and Restaurant profit were as follows:
Income / (Expense)
2015 vs. 2014
2014
Store Portfolio
Actions Other 2015
Company sales $ 1,452 $ 38 $ 51 $ 1,541
Cost of sales (431) (10) 20 (421)
Cost of labor (414) (12) (1) (427)
Occupancy and other (333) (11) (6) (350)
Restaurant Profit $ 274 $ 5 $ 64 $ 343
Income / (Expense)
2014 vs. 2013
2013
Store Portfolio
Actions Other 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