of 54
8/9/2019 YUM! Brands DCF Financial Model
1/54
Actual
2009A 2010A 2011A
Revenues
Company sales 9,413 9,783 10,893% revenue 86.9% 86.2% 86.3%
Franchise and license ees and income 1,423 1,!60 1,733% revenue 13.1% 13.8% 13.7%
Total revenues ### ### ###% "ro#$h 4.7% 11.3%
Company res$auran$s
Food and paper 3,003 3,091 3,633% company sales 31.9% 31.6% 33.4%
ayroll and employee &ene'$s 2,1!4 2,172 2,418% company sales 22.9% 22.2% 22.2%
(ccupancy and o$her opera$in" e)penses 2,777 2,8!7 3,089% company sales
29.!% 29.2% 8.1%Company restaurant expenses 7,934 8,120 9,140% revenue
*eneral and adminis$ra$ive e)penses 1,221 1,277 1,372% revenue 11.3% 11.3% 10.9%
Franchise and license e)penses 118 110 14!% ranchise and license income 8.3% 7.1% 8.4%
Closures and impairmen$ +income e)penses 103 47 13!% revenue 1.0% 0.4% 1.1%
-eranchisin" +"ain loss +26 63 72% revenue 0.2% 0.6% 0.6%
($her +income e)pense +104 +43 +!3% revenue 1.0% 0.4% 0.4%
/o$al cos$s and e)penses, ne$ 9,246 9,!74 10,811% revenue 8!.3% 84.4% 8!.6%
Operatn! "rot 1,$90 1,7%9 1,81$% "ro#$h 11.3% 2.6%
n$eres$ e)pense, ne$ 194 17! 1!6% revenue 1.!% 1.2%
&ncome 'e(ore &ncome Taxes 1,39% 1,$94 1,%$9% "ro#$h 14.2% 4.1%
ncome $a) provision 313 416 324
% revenue 32.9% 22.1%e$ ncome includin" noncon$rollin" in$eres$ 1,083 1,178 1,33!% "ro#$h 8.8% 13.3%
e$ ncome noncon$rollin" in$eres$ 12 20 16% "ro#$h 66.7% 20.0%
)et &ncome * +-. 'ran/s, &nc 1,071 1,1$8 1,319% "ro#$h
'asc arnn!s "er Common are 2.28 2.44 2.81% "ro#$h 7% 1!%
8/9/2019 YUM! Brands DCF Financial Model
2/54
'alance eet
AT
Current Assets
Cash and cash euivalen$s 3!3 1,426 1,198% o revenue 3% 13% 9%
5ccoun$s and no$es receiva&le, ne$ 239 2!6 286% o revenue 2% 2% 3%
nven$ories 122 189 273% o company res$auran$ e)pense 2% 2% 3%
repaid e)penses and o$her curren$ asse$s 314 269 338% o revenue 3% 2% 3%
eerred income $a)es 81 61 112% o revenue 1% 1% 1%
5dver$isin" coopera$ive asse$s, res$ric$ed 99 112 114% o revenue 1% 1% 1%
Total Current Assets 1,208 2,313 2,321roper$y, plan$ and euipmen$, ne$ 3,899 3,830 4,042% o revenue 36% 3!% 37%
*ood#ill 640 6!9 681% o revenue 6% 6% 6%
n$an"i&le asse$s, ne$ 462 47! 299% o revenue 4% 4% 3%
nves$men$s in unconsolida$ed alia$es 144 1!4 167% o revenue 1% 1% 2%
-es$ric$ed Cash 300% o revenue 0% 0% 3%
($her asse$s !44 !19 47!% o revenue !% !% 4%
eerred income $a)es 2!1 366 !49% o revenue 2% 3% !%
Total Assets 7,148 8,31% 8,834% "ro#$h 16% 6%
&A'&&T& A)5 6AR6O5R &T+ 5:&C&T;
Current a
8/9/2019 YUM! Brands DCF Financial Model
3/54
% o asse$s 16% 18% 21%
Total a
8/9/2019 YUM! Brands DCF Financial Model
4/54
:orcaste/
2012A 2013A 2014
11,833 11,184 12,324
86.8% 8!.!% 86.0%
1,800 1,900 2,006
13.2% 14.!% 14.0%
### ### ###
8.0% 4.0% 9.!%
3,874 3,669 4,042
32.7% 32.8% 32.8%
2,620 2,499 2,!88
22.1% 22.3% 21.0%
3,3!8 3,333 3,673
8.7% 0.7% 10.2% 9,8$2 9,$01 ###
1,!10 1,412 1,!76
11.1% 10.8% 11.0%
133 1!8 142
7.4% 8.3% 7.1%
37 331 143
0.3% 2.!% 1.0%
+78 +100 +!7
0.6% 0.8% 0.4%
+11! +16 +140.8% 0.1% 0.1%
11,339 11,286 12,093
83.2% 86.3% 84.4%
2,294 1,798 2,237
26.4% 21.6% 24%
149 247 149
1.1% 1.9% 1.0%
2,14$ 1,$$1 2,087
29.3% 27.7% 34.6%
!37 487 !64
6!.7% 9.3% 1!.7% 1,608 1,064 1,!24
20.4% 33.8% 43.2%
11 +27 1!
31.3% 34!.!% 1!6.4%
1,$97 1,091 1,$09
3.46 2.41 3.41
23% 30% 41%
8/9/2019 YUM! Brands DCF Financial Model
5/54
776 !73 64!
6% 4% !%
301 319 373
3% 3% 3%
313 294 393
3% 3% 4%
272 286 287
3% 3% 3%
111 123 143
1% 1% 1%
136 96 100
1% 1% 1%
1,909 1,%91 1,9414,2!0 4,4!9 4,918
39% 41% 4!%
1,034 889 917
10% 8% 8%
690 638 716
6% 6% 7%
72 !3 !7
1% 0% 1%
0% 0% 0%
!7! !66 631!% !% 6%
467 399 401
4% 4% 4%
9,013 8,%9$ 9,$81
2% 4% 10%
2,036 1,929 2,166
28% 27% 30%
97 169 143
1% 2% 2% 10 71 78
0% 1% 1%
136 96 100
2% 1% 1%
2,279 2,2%$ 2,487
2,932 2,918 2,918
41% 41% 41%
1,490 1,244 1,109
8/9/2019 YUM! Brands DCF Financial Model
6/54
21% 17% 16%
%,701 %,427 %,$1$
3% 4% 1%
!9 39 39
1% 1% 1%
0% 0% 0%
2,286 2,102 2,900
32% 29% 41%
+132 64 64
2% 1% 1%
2,1$4 2,1%% 2,9%4
99 63 63
1% 1% 1%
2,2$3 2,229 3,027
9,013 8,%9$ 9,$81
2% 4% 10%
8/9/2019 YUM! Brands DCF Financial Model
7/54
o$es
8/9/2019 YUM! Brands DCF Financial Model
8/54
on opera$in"
o $his is no$ a $ypo. =>?@ spli$s $heir curren$ por$ion o deerred income $a)es and i$s more
on (pera$in"
5c$uarial *ainsAossses in pension plans assumin" i$ is opera$in"
8/9/2019 YUM! Brands DCF Financial Model
9/54
*ainsAlosses on pension plans and on deriva$ive ins$rumen$s
8/9/2019 YUM! Brands DCF Financial Model
10/54
8/9/2019 YUM! Brands DCF Financial Model
11/54
lon" $erm por$ion o deerred income $a)es
8/9/2019 YUM! Brands DCF Financial Model
12/54
8/9/2019 YUM! Brands DCF Financial Model
13/54
num
8/9/2019 YUM! Brands DCF Financial Model
14/54
tores
8/9/2019 YUM! Brands DCF Financial Model
15/54
% *ro#$h !0.!%
ndia
Company (pera$ed 0.93 0.70
% *ro#$h 24.!%
Franshise 0.04 0.04
% *ro#$h 14.0%
BFC
Company (pera$ed 1.67 1.90
% *ro#$h 13.6%
Franshise 0.06 0.06
% *ro#$h 0.9%
i;;a u$
Company (pera$ed 1.09 1.87
% *ro#$h 70.8%
Franshise 0.06 0.06
% *ro#$h 0.8%
/aco Dell
Company (pera$ed 1.42 1.37
% *ro#$h 3.3%
Franshise 0.06 0.06
% *ro#$h 3.3%
Operatn! xpenses
Company -es$auran$ E)penses +% o Company ales
Food and paper 32% 33% 33%
ayroll and employee &ene'$s 22% 22% 22%
(ccupancy and o$her opera$in" e)penses29% 28% 28%
*eneral and 5dminis$ra$ive E)penses +% o /o$al -evenue 11% 11% 11%
Franchise and icense E)penses +% o Franchise and icen 8% 7% 8%
Closures and mpairmen$ +ncome E)penses +% /o$al -eve 1% 0% 1%
-eranchisin" +*ain oss +% /o$al -evenue 1% 1% 1%
($her +ncome E)pense +% /o$al -evenue 0% 0% 1%
Operatn! Assets an/ a
8/9/2019 YUM! Brands DCF Financial Model
16/54
eerred ncome /a)es + % o $o$al revenue 1% 1% 1%
5dver$isin" coopera$ive asse$s, res$ric$ed 1% 1% 1%
"" Bross 7,103 7,267 7,389
5ccumula$ed eprecia$ion 3,273 3,22! 3,139
E ne$ 3,830 4,042 4,2!0
C5EG 796 940 1,099
eprecia$ion 5mmor$i;a$ion e)pense !60 !99 629
5mor$i;a$ion E)pense 29 31 28
eprecia$ion E)pense !31 !68 601
Es$ima$ed >seul ie 12.7 12.1 11.7
eprecia$ion E)pense on e)is$in" E
eprecia$ion E)pense on ne# E
/o$al eprecia$ion E)pense
Forcas$ed E *ross
5ccumula$ed eprecia$ion
Forcas$ed E ne$
*ood Hill +% o /o$al -evenue 6% !% 8%
n$an"i&le 5sse$s +% o revenue 4% 2% !%
nves$men$s in unconsolida$ed alia$es +% $o$al revenue 1% 1% 1%
($her asse$s +% $o$al revenue !% 4% 4%
eerred income $a)es +% $o$al revenue 3% 4% 3%
Accounts "aya
8/9/2019 YUM! Brands DCF Financial Model
17/54
-eedema&le on Con$rollin" n$eres$
Common $oc: 86 18
5ccumula$ed Comprehensive ncome+ oss +227 +247 +132
hares (u$s$andin" 469 460 4!1
on Con$rollin" n$eres$ 93 93 99
)on Operatn! &ncome an/ xpenses&nterest &ncome 20 28 20
5sse$ Dase 1426 1198 776
mplied n$eres$ -a$e 1% 2% 3%
&nterest xpense 19! 184 169
on" /erm e&$ 291! 2997 2932
mplied n$eres$ -a$e 7% 6% 6%
&nterest xpense )et 17! 1!6 149
Tax an/ 5v/en/sEIec$ive /a) -a$e 26% 20% 2!%
Earnin"s a$$ri&u$a&le $o non con$rollin" in$eres$ 2% 1% 1%
Retane/ arnn!s
ividend ayou$s 412 481 !44
ividend ayou$ -a$io 36% 36% 34%
De"innin" -e$ained Earnin"s 996 1717 20!2
ividends 412 481 !44
e$ ncome 5$$ri&u$a&le $o =um@ 11!8 1319 1!97
Endin" -e$ained Earnin"s 1717 20!2 2286
8/9/2019 YUM! Brands DCF Financial Model
18/54
2013
6800 0.! 7771
0.0% 12.0% 14.3%
10! 0.! 113
4.0% 1!.9% 7.6%
%90$ 7884
109 0.! 120
29.8% 20.1% 10.0%
18 0.! 21
0.0% 2.9% 17.0%
127 141
204! 0.! 2109
10.2% 8.3% 3.1%
81! 0.! 847
6.1% 3.4% 3.9%
28%1 29$%
104! 0.! 1114
16.2% !.8% 6.6%
692 0.! 737
!.7% !.6% 6.6%
1737 18$1
118! 0.! 1209
17.0% 16.6% 2.1%
270 0.! 287
4.!% 3.3% 6.!%
14$$ 1497
11184 12324
$$@ 1.6% 102@
1900 200%
$%@ 4.7% $%@
13084 14330
40@ 9$@
Avera!
e2014
A//tons
"artal +ear)eD toreA/Eustment
2014BroDt
Rate
2014Common?e @
2014:orcaste/
Falue
8/9/2019 YUM! Brands DCF Financial Model
19/54
!026 !8! !611
10.!% 16%
90.9% 92% 90%
!01 6! !66
3.!% 62%
9.1% 8% 10%
191 48 239
!9.2% !2%
26.1% 21% 30%
!42 112 6!4
14.6% 22%
73.9% 79% 70%
1291 36 1327
7.6% 7%
9.3% 10% 10%
12!72 324 12896
1.7% 2%
90.7% 90% 90%
732 23 7!!
9.7% 11%
6.2% 7% 7%
11033 327 11360
2.2% 3%
93.8% 93% 93%
891 !0 841
14.7% 10%
1!.9% 19% 12%
4701 130 4831
11.!% 4%
84.1% 81% 88%
37480 39080
8131 8773
7.3% 4% 7.9%
29349 30307
3.!% 4% 3.3%
1.3! 1.46
9.!% 4.3% 8%
0.21 0.21
8/9/2019 YUM! Brands DCF Financial Model
20/54
7.7% 21.4% 1%
0.!7 0.63
18.!% 21.!% 10%
0.03 0.04
12.7% 13.4% 6%
1.!8 1.61
16.!% 1.!% 2%
0.06 0.07
4.3% 1.7% 3%
1.43 1.!0
23.7% 23.6% !%
0.06 0.07
3.4% 2.1% !%
1.33 1.40
2.8% 3.1% !%
0.06 0.06
6.2% 1.!% !%
33% 33% 33%
22% 22% 21%
30% 29% 30%
11% 11% 11%
7% 8% 7%
0% 1% 1%
1% 0% 0%
0% 0% 0%
1,900
319 3736.1 6 !.8
!9.6 !9
294 393
9!01
31 39 30
2% 2% 2%
8/9/2019 YUM! Brands DCF Financial Model
21/54
1% 1% 1%
1% 1% 1%
7,8!0 9,0!0
3,391
4,4!9
1,049 1,200
686
28
6!8
11.4 11.4
689
0.! !3
741
9,0!0
4,132
4,918
7% 6%
!% 4% !%
0% 1% 0%
4% 4% 4%
3% 4% 3%
313 294
9,482 10,402
9,!01 10,303
294 393
1,929 2,166
4.78 !.1! !.08
1% 1% 1%
1% 2% 1%
1% 1% 1%
11% 13% 9%
0% 1% 0%
4% 8% !%
2918 2941 2,918
39 2! 39
8/9/2019 YUM! Brands DCF Financial Model
22/54
26
64 +136 64
443 4!6 443
63 87 63
23 2!.79
!73 644.84
4% 4%
270 17!.08
2918 2,918
9% 7% 6%
247 149.29
31% 26% 27%
3% 0% 1%
61!
!6% 47%
2286 2102
61! +710
1091 1,!09
2102 2900
8/9/2019 YUM! Brands DCF Financial Model
23/54
)otes
ource o a$a or China and ndiaJ =um@ 2013 10B
China Company opera$ed revenue did no$ chan"e much &ecause $he decrease in same s$ore sales #
-evenues or BFC, i;;a u$, and /aco Dell are es$ima$ed &ased in inorma$ion rom $he 10B
8/9/2019 YUM! Brands DCF Financial Model
24/54
8/9/2019 YUM! Brands DCF Financial Model
25/54
E)penses Kus$ or company res$auran$s. hould &e lin:ed $o company sales.
Company has implemen$ed employee cos$ reducin" measures
>sin" $o$al revenue ins$ead o Kus$ company sales as =>?@ has recieva&les rom i$s ranchisees as #
=>?Ls recieva&les are primarily "enera$ed &y on"oin" rela$ions #i$h ranchises and licensees. Hill us
ince =>?@ does no$ record C(*, #e are usin" company res$auran$ e)penses or $he numera$or o $
=>?@ seems $o &e holdin" less inven$ory, $hus i$ is sellin" i$ oI as$er
some adver$isin" e)penses are a lar"e por$ion o $his , predic$ an increase due $o increased ads need
8/9/2019 YUM! Brands DCF Financial Model
26/54
ercen$a"e o unds rom &o$h company o#ned res$auran$s and ranchises $o "o $o#ards adver$isin"
2014 10 B pa"e 43
ecreasin" $rend has &een due $o impairmen$s rom li$$le sheep closures
5ssume accoun$s paya&le are primarily used $o pay oI inven$ories
/here has &een a s$eady do#n#ard $rend o $he $urnover ra$io even#hile inven$ory purchases have
ince $his is mainly ac$urial "ains on pension plans or =>?@ employees #e are ma:in" $his a perce
/he res$ric$ed cash #as due $o $he acuisi$ion o li$$le sheep. o indica$ion $ha$ $his #ill reoccur
Dein" in $he M- indus$ry, =>?@ has "enera$ed a su&s$an$ial amoun$ o cash No# rom opera$ions a
?ana"emen$ provides no "uidance a&ou$ #he$her $he ccompany #ill $a:e on more lon" $erm de&$
?ana"emen$ provides no "uidance a&ou$ $his
8/9/2019 YUM! Brands DCF Financial Model
27/54
Oery dicul$ $o predic$ "ains in inves$men$ and pension plans
o "uidance on chan"in" noncon$rollin" in$eres$
10B indica$es $ha$ lon" $erm in$eres$ ra$es ran"e rom 2.38% $o 6.88%. /his is $he #i"h$ed avera"e
8/9/2019 YUM! Brands DCF Financial Model
28/54
s &alanced ou$ &y s$ore por$olio acuisi$ions
8/9/2019 YUM! Brands DCF Financial Model
29/54
8/9/2019 YUM! Brands DCF Financial Model
30/54
ll
e ranchise income or $urnover ra$io.
he inven$ory $urnover ra$io
ed or &rea:as$ menu
8/9/2019 YUM! Brands DCF Financial Model
31/54
coopera$ives. /here is no indica$ion $ha$ $his percen$a"e #ill chan"e
een varied or $he pas$ e# years. ?us$ &e payin" oI accoun$s paya&le as$er.
n$a"e o company sales
d uses $his cash mainly $o run i$s res$auran$s and purchase landAranchised res$auran$s. /hus #e are
8/9/2019 YUM! Brands DCF Financial Model
32/54
$he in$eres$ on lon" $erm de&$
8/9/2019 YUM! Brands DCF Financial Model
33/54
8/9/2019 YUM! Brands DCF Financial Model
34/54
8/9/2019 YUM! Brands DCF Financial Model
35/54
8/9/2019 YUM! Brands DCF Financial Model
36/54
usin" cash as a percen$a"e o revenue. 5ssume a sli"h$ increase in cash &ecause o e)pec$a$ions o
8/9/2019 YUM! Brands DCF Financial Model
37/54
8/9/2019 YUM! Brands DCF Financial Model
38/54
8/9/2019 YUM! Brands DCF Financial Model
39/54
8/9/2019 YUM! Brands DCF Financial Model
40/54
8/9/2019 YUM! Brands DCF Financial Model
41/54
increased opera$in" cash No# rom increased sales in China.
8/9/2019 YUM! Brands DCF Financial Model
42/54
8/9/2019 YUM! Brands DCF Financial Model
43/54
Year 2011 2012 2013 Sources:
2013 10 K pg 36 and 37
YRI Revenue 2013 Restaurant Unit Activity Summary
Company 231 202 21!" 2012 Restaurant Unit Activity Summary
Franchise #!1 #7" "0
US Revenue
Company 2"#" 2!!0 2116 Explination
Franchise 7#6 #02 #37
Stores as % of total YRI Stores
YRI $ompany
KFC 0%#1 0%#1 0%#2
Pizza Hut 0%1" 0%1" 0%1#
Taco Bell 0 0 0
YRI &ranc'ise
KFC 0%62 0%6 0%6
Pizza Hut 0%36 0%3# 0%3#
Taco Bell 0%02 0%02 0%02
Stores as % of total US Stores
US $ompanyKFC 0%1# 0%13 0%13
Pizza Hut 0%2! 0%31 0%31
Taco Bell 0%!7 0%!6 0%!6
US &ranc'ise
KFC 0%3 0%3 0%3
Pizza Hut 0% 0% 0%
Taco Bell 0%3 0%3 0%3
Revenue for each segment
$ompanyKFC 23 2277 20!
Pizza Hut 11"2 127 10!
Taco Bell 170 12# 11#!
&ranc'ise
KFC 763 76# #1!
Pizza Hut 621 6!! 6"2
Taco Bell 2!3 2!# 270
ince or#ard "uidance #as "iven in $erms$he ne# se"men$ repor$in" #hich $ransorm
=- +=um@ -es$auran$s n$erna$ional and $h> se"men$s in$o $he BFC, /aco Dell, and iu$ e"men$s #e es$ima$ed #ha$ revenue$he ne#ly de'ned BFC, i;;a u$, and /acoDell e"men$s #ould have &een in 2013,2012, and 2011.
8/9/2019 YUM! Brands DCF Financial Model
44/54
ed
;aor
8/9/2019 YUM! Brands DCF Financial Model
45/54
um&ers in ?illions
2009A
Revenues
Company sales 9,413
% "ro#$h
Franchise and license ees and income 1,423
% "ro#$h
Total revenues 10,83%
% "ro#$h
Company restaurant expenses 7,934
*eneral and adminis$ra$ive e)penses 1,221
Franchise and license e)penses 118
Closures and impairmen$ +income e)penses 103
-eranchisin" +"ain loss +26
($her +income e)pense +104
/o$al cos$s and e)penses, ne$ 9,246
Operatn! &ncome 'e(ore Tax 1,$90
ncome /a)es 313
$a) &ene'$ or in$eres$ 68
$a) on opera$in" income 381
)et Operatn! "rot A(ter Tax )O"AT; 1,209
)et Operatn! "rot -ar!n 112@
n$eres$ E)pense 194
$a$u$ory /a) -a$e 3!%
/a) on n$eres$67.9
)et )on Operatn! xpense 126
nven$ories 122
repaid E)penses 314
eerred ncome /a) 81
5dver$isin" coopera$ive asse$s 99
E ne$ 3,899
*ood#ill 640
n$an"i&le 5sse$s 462
nves$men$s in unconsolida$ed alia$es 144
($her asse$s !44eerred ncome /a) 2!1
5ccoun$s aya&le 1,413
ncome /a) aya&le 82
5dver$isin" Coopera$ive ia&ili$ies 99
)et Operatn! Assets )OA; 4,962
(5/ 2.18
Cash and euivalen$s 3$3
8/9/2019 YUM! Brands DCF Financial Model
46/54
5ccoun$s and no$es recieva&le 239
-es$ric$ed Cash
hor$ /erm Dorro#in" !9
on" /erm e&$ 3,207
($her ia&ili$ies and eerred Credi$s 1,174
)et )onoperatn! O
8/9/2019 YUM! Brands DCF Financial Model
47/54
Actual :orcaste/
2010A 2011A 2012A 2013A 2014 201$ 201% 2017 2018
9,783 10,893 11,833 11,184 12,324 13,310 14,108 14,814 1$,40%
3.9% 11.3% 8.6% !.!% 10.2% 8.0% 6.0% !.0% 4.0%
1,!60 1,733 1,800 1,900 2,006 2,04% 2,107 2,192 2,279
9.6% 11.1% 3.9% !.6% !.6% 2.0% 3.0% 4.0% 4.0%
11,343 12,%2% 13,%33 13,084 14,330 1$,3$% 1%,21% 17,00$ 17,%8%
4.7% 11.3% 8.0% 4.0% 9.!% 7.2% !.6% 4.9% 4.0%
8,120 9,140 9,8$2 9,$01 10,303
1,277 1,372 1,!10 1,412 1,!76
110 14! 133 1!8 142
47 13! 37 331 143
63 72 +78 +100 +!7
+43 +!3 +11! +16 +14
9,!74 10,811 11,339 11,286 12,093
1,7%9 1,81$ 2,294 1,798 2,237
416 324 !37 487 !64
61 !! !2 86 !2
477 379 !89 !73 616
1,292 1,436 1,70! 1,22! 1,433 PPP 1,703 1,786 1,8!7
114@ 114@ 12$@ 94@ 100@ 10$@ 10$@ 10$@ 10$@
17! 1!6 149 247 149
3!% 3!% 3!% 3!% 3!%
61.2! !4.6 !2.1! 86.4! !2.2!
114 101 97 161 97
189 273 313 294 393
269 338 272 286 287
61 112 111 123 143
112 114 136 96 100
3,830 4,042 4,2!0 4,4!9 4,918
6!9 681 1,034 889 917
47! 299 690 638 716
1!4 167 72 !3 !7
!19 47! !7! !66 631366 !49 467 399 401
1,602 1,874 2,036 1,929 2,166
61 142 97 169 143
112 114 136 96 100
4,8!9 4,920 !,6!1 !,609 6,1!4 6,!90 6,989 7,330 7,6!6
2.33 2.!7 2.41 2.33 2.33 2.33 2.32 2.32 2.31
1,42% 1,198 77% $73 %4$
8/9/2019 YUM! Brands DCF Financial Model
48/54
2!6 286 301 319 373
300
673 320 10 71 78
2,91! 2,997 2,932 2,918 2,918
1,284 1,471 1,490 1,244 1,109
+3,190 +3,004 +3,3!! +3,341 +3,087
86 18
1,717 2,0!2 2,286 2,102 2,900
+227 +247 +132 64 64
93 93 1!8 102 102
1,669 1,916 2,312 2,268 3,066
8/9/2019 YUM! Brands DCF Financial Model
49/54
o$es
8/9/2019 YUM! Brands DCF Financial Model
50/54
8/9/2019 YUM! Brands DCF Financial Model
51/54
num&ers in millions
Actual
2009A 2010A 2011A
/o$al -evenues 10,836 11,343 12,626
Growth !% 11%
(5/ 1,209 1,292 1,436
Growth 7% 11%
(5 4,962 4,8!9 4,920
Growth 2% 1%
Cost o( =uty )otes
- 2.7%
De$a 0.7
-e$urn on Eui$y 6.2%
-F o( =uty
Dalance hee$ $oc: rice Q73.2
hares (u$s$andin" +?illions 442.9
/o$al Eui$y Q32,438.0
Cost o( 5e
8/9/2019 YUM! Brands DCF Financial Model
52/54
5C: Faluaton
eriod 1 2 3
ncrease in (5 !4! 437 399(5/ncrease in (5 888 1,176 1,304
iscoun$ Fac$or 0.94 0.89 0.84
O o FCF 837.82 1,046.03 1,093.97
um o O FCF 42,009.66
ess ( +3,087.44
Firm Eui$y Oalue 38,922.23
hares (u$s$andin" 442.9
tocH Falue 8788
5nalys$ Es$ima$es 8$00
Curren$ $oc: rice 7%30
ercen$ >ndervalued 1$@
8/9/2019 YUM! Brands DCF Financial Model
53/54
:orcaste/
2012A 2013A 2014 201$ 201% 2017 2018
13,633 13,084 14,330 1!,3!6 16,216 17,00! 17,686
8% 4% 10% 7% 6% !% 4%
1,70! 1,22! 1,433 1,612 1,703 1,786 1,8!7
19% 28% 17% 13% 6% !% 4%
!,6!1 !,609 6,1!4 6,!90 6,989 7,330 7,6!6
1!% 1% 10% 7% 6% !% 4%
alue "iven so added up $he principle amoun$ due on each &ond s$ill ou$s$andin"
h ra$e
8/9/2019 YUM! Brands DCF Financial Model
54/54