Yum! Brands Inc (YUM)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,818,000 | 1,662,000 | 1,674,000 | 1,020,000 | 1,373,000 |
| Revenue | US$ in thousands | 7,076,000 | 6,842,000 | 6,584,000 | 5,652,000 | 5,597,000 |
| Pretax margin | 25.69% | 24.29% | 25.43% | 18.05% | 24.53% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,818,000K ÷ $7,076,000K
= 25.69%
The pretax margin for Yum Brands Inc. has exhibited some fluctuations over the past five years. The highest pretax margin was recorded in December 2023 at 25.69%, showing an improvement from the prior year. This suggests that the company was able to effectively control operating expenses and generate higher earnings before taxes in 2023.
In contrast, the pretax margin had a notable decrease in December 2020, dropping to 18.05%. This decline could indicate challenges in managing costs or a decrease in profitability during that year.
Overall, the trend in pretax margins for Yum Brands Inc. has been relatively stable, with fluctuations within a reasonable range. It is essential for investors and analysts to closely monitor these margins to assess the company's efficiency in generating profits before taxes.
Peer comparison
Dec 31, 2023