Yum! Brands, Inc. (YUM) is a worldwide operator and franchisor of fast-food restaurants, under the familiar brands of KFC, Pizza Hut, Taco Bell, and Habit Burger Grill. Segment revenues, operating income, and depreciation and amortization expense for Yum!’s operating segments are provided for a recent year as follows (in millions):

a. Prepare a vertical analysis of the revenue as a percent of total revenue for the four segments. Round percentages to the nearest whole percent. Which segment has the greatest percentage of total revenue?
b. Determine the earnings before interest, taxes, depreciation, and amortization (EBITDA) for the four segments.
c. Determine the EBITDA as a percent of segment revenue (EBITDA margin) for the four segments. Round percentages to the nearest whole percent.
d. Interpret the analysis in (c).

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Segment KFC Pizza Hut Taco Bell Habit Burger Grill Revenues $2,272 1,002 2,031 347 Operating Income (Loss) $922 335 696 (22) Depreciation and Amortization Expense $29 24 56 25