filings.toolsItem 6. Selected Financial Data.
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Item 6. Selected Financial Data.
Selected Financial Data
Yum! Brands, Inc. and Subsidiaries
(in millions, except per share and unit amounts)
| 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
| Income Statement Data | |||||||||||||||||||
| Revenues | |||||||||||||||||||
| Company sales | $ | 1,546 | $ | 2,000 | $ | 3,572 | $ | 4,189 | $ | 4,336 | |||||||||
| Franchise and property revenues | 2,660 | 2,482 | 2,306 | 2,167 | 2,082 | ||||||||||||||
| Franchise contributions for advertising and other services | 1,391 | 1,206 | — | — | — | ||||||||||||||
| Total | 5,597 | 5,688 | 5,878 | 6,356 | 6,418 | ||||||||||||||
| Refranchising (gain) loss | (37 | ) | (540 | ) | (1,083 | ) | (163 | ) | 23 | ||||||||||
| Operating Profit | 1,930 | 2,296 | 2,761 | 1,682 | 1,434 | ||||||||||||||
| Other pension (income) expense | 4 | 14 | 47 | 32 | 40 | ||||||||||||||
| Interest expense, net | 486 | 452 | 445 | 307 | 141 | ||||||||||||||
| Income from continuing operations before income taxes | 1,373 | 1,839 | 2,274 | 1,345 | 1,253 | ||||||||||||||
| Income from continuing operations | 1,294 | 1,542 | 1,340 | 1,018 | 926 | ||||||||||||||
| Income from discontinued operations, net of tax | N/A | N/A | N/A | 625 | 357 | ||||||||||||||
| Net Income | 1,294 | 1,542 | 1,340 | 1,643 | 1,283 | ||||||||||||||
| Basic earnings per share from continuing operations | 4.23 | 4.80 | 3.86 | 2.58 | 2.13 | ||||||||||||||
| Basic earnings per share from discontinued operations | N/A | N/A | N/A | 1.59 | 0.82 | ||||||||||||||
| Basic earnings per share | 4.23 | 4.80 | 3.86 | 4.17 | 2.95 | ||||||||||||||
| Diluted earnings per share from continuing operations | 4.14 | 4.69 | 3.77 | 2.54 | 2.09 | ||||||||||||||
| Diluted earnings per share from discontinued operations | N/A | N/A | N/A | 1.56 | 0.81 | ||||||||||||||
| Diluted earnings per share | 4.14 | 4.69 | 3.77 | 4.10 | 2.90 | ||||||||||||||
| Diluted earnings per share from continuing operations excluding Special Items | 3.55 | 3.17 | 2.96 | 2.46 | 2.31 | ||||||||||||||
| Cash Flow Data | |||||||||||||||||||
| Provided by operating activities | $ | 1,315 | $ | 1,176 | $ | 1,030 | $ | 1,248 | $ | 1,260 | |||||||||
| Capital spending | 196 | 234 | 318 | 427 | 442 | ||||||||||||||
| Proceeds from refranchising of restaurants | 110 | 825 | 1,773 | 370 | 213 | ||||||||||||||
| Repurchase shares of Common Stock | 815 | 2,390 | 1,960 | 5,403 | 1,200 | ||||||||||||||
| Dividends paid on Common Stock | 511 | 462 | 416 | 744 | 730 | ||||||||||||||
| Balance Sheet Data | |||||||||||||||||||
| Total assets | $ | 5,231 | $ | 4,130 | $ | 5,311 | $ | 5,453 | $ | 4,939 | |||||||||
| Long-term debt | 10,131 | 9,751 | 9,429 | 9,059 | 2,988 | ||||||||||||||
| Total debt | 10,562 | 10,072 | 9,804 | 9,125 | 3,908 | ||||||||||||||
| Other Data | |||||||||||||||||||
| Number of units at year end | |||||||||||||||||||
| Franchise | 49,257 | 47,268 | 43,603 | 40,834 | 39,320 | ||||||||||||||
| Company | 913 | 856 | 1,481 | 2,841 | 3,163 | ||||||||||||||
| System | 50,170 | 48,124 | 45,084 | 43,675 | 42,483 | ||||||||||||||
| System net new unit growth | 4 | % | 7 | % | 3 | % | 3 | % | 3 | % | |||||||||
| System and same-store sales | |||||||||||||||||||
| KFC Division System sales | $ | 27,900 | $ | 26,239 | $ | 24,515 | $ | 23,242 | $ | 22,628 | |||||||||
| System sales growth (decline) | 6 | % | 7 | % | 5 | % | 3 | % | (3 | )% | |||||||||
| System sales growth, ex FX and 53rd week | 9 | % | 6 | % | 6 | % | 6 | % | 5 | % | |||||||||
| Same-store sales growth | 4 | % | 2 | % | 3 | % | 2 | % | 1 | % | |||||||||
| Pizza Hut Division System sales | $ | 12,900 | $ | 12,212 | $ | 12,034 | $ | 12,019 | $ | 11,999 | |||||||||
| System sales growth (decline) | 6 | % | 1 | % | — | % | — | % | (1 | )% | |||||||||
| System sales growth, ex FX and 53rd week | 7 | % | 1 | % | 2 | % | 1 | % | 3 | % | |||||||||
| Same-store sales growth (decline) | — | % | — | % | — | % | (2 | )% | — | % | |||||||||
| Taco Bell Division System sales | $ | 11,784 | $ | 10,786 | $ | 10,145 | $ | 9,660 | $ | 9,102 | |||||||||
| System sales growth | 9 | % | 6 | % | 5 | % | 6 | % | 8 | % | |||||||||
| System sales growth, ex FX and 53rd week | 8 | % | 6 | % | 7 | % | 5 | % | 8 | % | |||||||||
| Same-store sales growth | 5 | % | 4 | % | 4 | % | 2 | % | 5 | % | |||||||||
| Shares outstanding at year end | 300 | 306 | 332 | 355 | 420 | ||||||||||||||
| Cash dividends declared per common share | $ | 1.68 | $ | 1.44 | $ | 0.90 | $ | 1.73 | $ | 1.74 | |||||||||
| Market price per share at year end | $ | 100.73 | $ | 91.92 | $ | 81.61 | $ | 63.33 | $ | 73.05 |
The table above reflects the impact of the adoption of new lease accounting standards in fiscal year 2019. Refer to Note 2 in our Consolidated Financial Statements for information regarding our adoption of the new lease standards.
The table above reflects the impact of the adoption of new revenue recognition accounting standards in fiscal year 2018. Refer to Note 2 in our Consolidated Financial Statements for further information.
System sales growth measures in 2019 and System unit growth in 2018 reflects the addition of approximately 1,300 Telepizza units in December 2018. See Management's Discussion and Analysis ("MD&A") Part II, Item 7 for a description of the Telepizza strategic alliance.
Fiscal years for our U.S. and certain international subsidiaries that operate on a weekly periodic calendar include 52 weeks in 2018, 2017 and 2015 and 53 weeks in 2019 and 2016. Refer to Note 2 in our Consolidated Financial Statements for additional details related to our fiscal calendar, including the impact of the 53rd week on our results in 2019. In 2019, the 53rd week added $24 million to Operating Profit and $17 million to our Net Income. In 2016, the 53rd week added $28 million to Operating Profit.
Discontinued operations in 2016 and 2015 reflects the spin-off of our China business into an independent, publicly-traded company (the "Separation").
The historical stock price for year end 2015 does not reflect any adjustment for the impact of the Separation.
The non-GAAP measures of System sales growth, System sales growth excluding the impacts of foreign currency translation ("FX") and 53rd week and Diluted earnings per share from continuing operations excluding Special Items are discussed in further detail in our MD&A within Part II, Item 7.
Same-store sales growth and System net new unit growth are performance metrics and discussed in further detail in our MD&A within Part II, Item 7.
See discussion of our 2019, 2018 and 2017 Special Items in our MD&A. Special Items in 2016 positively impacted Operating Profit by $35 million and positively impacted Net Income by $33 million, primarily due to Refranchising gains, partially offset by $67 million in costs associated with YUM's Strategic Transformation Initiatives, $30 million in share-based compensation charges related to the Separation and $26 million due to costs associated with the KFC Acceleration Agreement. Additionally, in 2016, we incurred $26 million within Other Pension (income) expense primarily due to a settlement charge associated with an option for certain employees to voluntarily elect an early payout of their pension benefits. Special Items in 2015 negatively impacted Operating Profit by $91 million and negatively impacted Net Income by $95 million, due to costs associated with the KFC Acceleration Agreement and Refranchising losses.
Selected financial data for years 2016 and 2015 has been recast from that originally presented to present a change in our reporting calendar and the retroactive adoption of an accounting standard related to the presentation of net periodic pension cost and net periodic postretirement benefit cost.
The selected financial data should be read in conjunction with the Consolidated Financial Statements.
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