Essay about Financial Analysis Report Yum! Brands

4253 Words Dec 20th, 2009 18 Pages
Financial Analysis Report (FAR)

YUM! Brands, Inc.

The fast food and quick service restaurant industry consisted of about 945,000 restaurants representing approximately $552 billion in annual sales. The industry is highly fragmented, with the top 50 companies holding about 25% of industry sales and is intensely competitive with respect to food quality, price, service, convenience, location and concept (Hoovers 2009). The major companies of the industry include McDonald’s, Burger King, Subway, Domino’s Pizza, Dairy Queen and the Yum Brands restaurant companies. Quick service restaurants are often affected by changes in consumer tastes; national, regional or local economic conditions; currency fluctuations; demographic trends;
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segment due to the current economic situation in the U.S. (Yum! Brands website, 2009). The explosive growth in China and other key developing countries via the Yum! Restaurants International segment has enabled Yum Brands to capture a huge market share in the quick service restaurant industry, thus making them the largest restaurant company of that industry (Yum! Brands website, 2009).
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Yum! Brands, Inc. is considered a Large Cap company with a market cap of 16.16 billion. The company currently has 461.59 million shares outstanding and a float of 459.64 million. The float percentage is 99.58. This large float percentage makes this company more attractive to investors as it shows that the stock price is more stable. The greater the number of shares available for trade, the less volatility the stock price will show since it becomes harder for a smaller number of shares to affect the price. 79.30% of the stock is owned by institutions and .41% is held by insiders. Many of the insiders that hold Yum Brands stock would include the top executives (See appendix A for executive bios) and the Board of directors. Below is a list of the Yum Brands Board of Directors:
The Board of directors for Yum Brands, Inc.
David C. Novak
Director since 1997 | Chairman of the Board, Chief Executive Officer

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