Exhibit 99.1
Yum! Brands Inc. Reports Record Earnings Per Share, EPS, in 2004 of $2.36, an
Increase of 15% Prior to Special Items; Reported EPS Including Special Items Was
$2.42, an Increase of 20%
LOUISVILLE, Ky.--(BUSINESS WIRE)--February 1, 2005--Yum! Brands Inc. (NYSE:
YUM):
-- Announces record fourth-quarter EPS of $0.73, an increase of 13% prior
to special items.
-- Increases full-year 2005 EPS guidance by $0.01 to at least $2.60 prior
to special items.
-- Reports estimated Period 1 International Division (excludes China
Division) system sales increased 13% in U.S. dollar terms or 8% prior
to foreign currency conversion.
-- Reports estimated Period 1 U.S. blended same-store sales at company
restaurants increased 3% (Taco Bell, +3%; Pizza Hut, +6%; KFC, +1%).
Yum! Brands Inc. today reported results for the fourth quarter ended
December 25, 2004.
The following are key points relative to the current fourth quarter and
year-over-year performance:
-- Total international operating profit grew 13% or 8% prior to foreign
currency conversion.
-- Total international system restaurants in operation at quarter's end
increased by 5%, the eighteenth consecutive quarter of at least 5%,
year-over-year growth.
-- International system restaurants in operation at quarter's end grew
28% in China, 6% in the U.K. and 5% in international franchise-only
businesses.
-- U.S. multibrand restaurants in operation expanded by 23%.
-- Systemwide U.S. blended same-store sales increased 2%.
-- U.S. restaurant margin declined 2.1 percentage points primarily due to
significantly higher commodity costs.
-- The tax rate prior to special items declined 4.4 percentage points to
24.1%. This boosted fourth-quarter EPS by one cent beyond what was
indicated in the company's prior guidance calling for a 3 percentage
point decline.
-- Fourth-quarter results included two cents of cost from accounting
adjustments related to the current and prior years' impact of a change
in interpretation related to accounting for leases and leasehold
improvements.
-- The company paid a quarterly dividend of 10 cents per share November
5, 2004.
Consolidated Financial Highlights
Fourth Quarter Full Year
---------------------------------------------------
2004 2003 % Change 2004 2003 % Change
------- ------- --------- ------- ------- ---------
System
Restaurants 31,263 30,837 +1 31,263 30,837 +1
Worldwide System
Same-Store-Sales
Growth +2% +2% NM +3% Even NM
Revenues (million) $2,785 $2,653 +5 $9,011 $8,380 +8
EPS Prior to
Special Items $0.73 $0.65 +13 $2.36 $2.06 +15
Special Items EPS $0.04 $0.05 NM $0.06 $(0.04) NM
Reported EPS $0.77 $0.70 +10 $2.42 $2.02 +20
David C. Novak, Chairman and CEO, said: "I am pleased to report 2004 was
another year in which we showed the underlying power of our global portfolio of
leading restaurant brands. Fueled by continued profitable international
expansion including dynamic growth in China, combined with another strong
performance from Taco Bell in the United States, we achieved 15% EPS growth
prior to special items. Additionally, executing our financial strategies and
increasing our cash flow contributed to our strong performance -- our third
consecutive year of solid double-digit growth in EPS.
"Highlights include a number of firsts: record cash generated from
operating activities of over $1.1 billion and a record $1.0 billion in franchise
fees. We also reached our goal to achieve an investment grade rating from each
major rating agency after paying off nearly $3 billion in debt the past seven
years. Armed with increasing cash flow and a strong balance sheet, we also
increased our payout to shareholders by initiating the first quarterly dividend
in our history and completing the buyback of a record 14 million shares,
spending approximately $569 million.
"Most importantly, we remain confident that going forward we can continue
to build our track record of growing EPS at least 10% each year. As we have
said, the key drivers are opening at least 1,000 new restaurants outside the
U.S.A., and growing U.S. same-store sales by +1% to +2%. As we move into the new
year, given the strength of our fourth-quarter performance, we have raised our
full-year 2005 EPS estimate one cent to at least $2.60 or at least 10% growth
prior to special items.
"Shareholders should expect us to continue to build value by executing the
unique growth opportunities that differentiate us from the competition and make
us anything but an ordinary restaurant company: building dominant restaurant
brands in China, driving profitable international expansion, improving
restaurant operations, and multibranding category-leading brands."
INTERNATIONAL BUSINESS
- ----------------------
Fourth Quarter Full Year
(million, % Change % Change
except unit ------------- -------------
counts and Excl Excl
percentages) 2004 2003 Reported F/x 2004 2003 Reported F/x
------ ------ -------- ---- ------ ------ -------- ----
Financial
Measures
Revenues $1,037 $915 +13 +10 $3,248 $2,725 +19 +15
Operating
Profit $160 $144 +13 +8 $542 $441 +23 +17
Operating
Metrics
Est. System-
Sales Growth +13 +8 +15 +9
System
Restaurants 12,792 12,171 +5 NA 12,792 12,171 +5 NA
NOTE: 2004 International Business results include the China Division
(the People's Republic of China, Thailand and KFC Taiwan). Starting
with the first quarter of 2005, the International Division and China
Division results will be reported separately.
In the fourth quarter and for the full year, continued profitable expansion
of KFC and Pizza Hut drove international revenue, system-sales and
operating-profit growth.
Fourth-quarter international system sales grew by 8% prior to foreign
currency conversion, exceeding the company's ongoing target for growth with
same-store-sales growth slightly above target. As has been the case for the past
four years, the most significant contributor to this strong performance was
growth in overall international system restaurants. Our two most profitable
markets, China and the U.K., increased system sales in local currency terms by
19% and 8% respectively. The company's international franchise-only businesses,
a high-return growth segment representing 35% of international system
restaurants, had 9% growth in system sales prior to currency conversion and 5%
growth of system restaurants.
For the fourth quarter, revenue increased 10% prior to foreign currency
conversion. As previously communicated, the Puerto Rico market was refranchised
subsequent to the third quarter, which ended September 4, 2004. Excluding the
impact of refranchising the Puerto Rico market, reported revenue growth for the
fourth quarter would have been 13% prior to foreign currency conversion. With
the refranchising of the Puerto Rico market, revenue from these restaurants
changes from company sales to franchise fees.
Restaurant margin as a percentage of sales declined 0.3 percentage points
for the fourth quarter. This was primarily driven by unfavorable impact from
higher labor costs in certain markets and the impact of operating a portion of
the Canada market, previously an unconsolidated affiliate. For the full year,
restaurant margin increased 0.3 percentage points. This increase was primarily a
result of positive leverage from same-store-sales growth in company markets. For
2005, we expect international restaurant margin to increase slightly.
Overall, foreign currency conversion added $6 million to international
operating profit for the fourth quarter and $26 million for the year.
UNITED STATES BUSINESS
- ----------------------
(million, except Fourth Quarter Full Year
unit counts
and percentages) 2004 2003 % Change 2004 2003 % Change
------- ------- --------- ------- ------- ---------
Financial Measures
Revenues $1,748 $1,738 Even $5,763 $5,655 +2
Operating Profit $210 $241 (13) $777 $812 (4)
Operating Metrics
Est. System-Sales
Growth +3% +1% NM +3% Even NM
System Restaurants 18,471 18,666 (1) 18,471 18,666 (1)
In the fourth quarter and for the full year, the primary drivers of U.S.
revenue growth were continued development of new, higher-volume restaurants,
which, on average, more than offset reduced revenues associated with the closure
of lower-volume restaurants and systemwide same-store-sales growth.
These higher volume new restaurants contributed one percentage point of
revenue growth in the fourth quarter and full year. U.S. system restaurants in
operation declined by 1% due primarily to closures of certain Pizza Hut dine-in
restaurants and lower-volume A&W single-brand mall-location restaurants. The
U.S. restaurant portfolio continues to be upgraded with new restaurants, which
on average, are higher volume.
For the fourth quarter and the full year, U.S. restaurant margin declined
by 2.1 and 0.8 percentage points respectively, mainly as a result of
significantly higher commodity costs (primarily meats and cheese) partially
offset by same-store-sales growth. This was a key factor in the operating profit
decline for the fourth quarter and full year, equating to approximately 1.7
percentage points and 1.6 percentage points of adverse impact on restaurant
margin respectively.
The cumulative accounting adjustments recorded in the fourth quarter
related to a recent change in interpretation related to accounting for leases
and leasehold improvements negatively impacted restaurant margin by 0.8 and 0.2
percentage points for the fourth quarter and full year 2004 respectively.
The company expects continued above-average inflation rates for key
commodities in the U.S. for the first quarter of 2005. This is reflected in the
company's outlook.
WORLDWIDE NEW-RESTAURANT DEVELOPMENT
- ------------------------------------
System New-Restaurant Openings Fourth Quarter Year to Date
-------------- -------------
Worldwide 621 1,450
Key Markets
International Franchise-Only Businesses 182 409
United States 125 373
China 152 334
U.K. 50 91
Japan 18 51
Australia/New Zealand 14 49
Pizza Hut South Korea 30 48
Mexico 13 29
Worldwide system new-restaurant openings for the fourth quarter and full
year were primarily driven by growth in new international KFC and Pizza Hut
restaurants. Franchise and joint-venture partners opened 71% of systemwide new
international restaurants for the full year. For international franchise-only
businesses, year-over-year restaurant growth was 5%. Specifically, Asia
increased 7%; southern Africa, 7%; the Middle East, 6%; Caribbean/Latin America,
5%; and Europe 1%.
In the U.S. market, the majority of new-restaurant openings were the KFC
and Pizza Hut brands. For the full year, over 60% of new-restaurant openings
were franchised.
This discussion and the preceding table exclude changes in license-unit
locations, which had no material impact on the company's overall profit
performance in 2004. License locations are typically nontraditional sites, such
as airports, that normally have substantially lower average unit volumes than
traditional restaurant locations.
MULTIBRAND EXPANSION
- --------------------
Multibrand Restaurants in Operation Fourth Quarter
2004 2003 Incr/(Decr)
------- ------- -----------
U.S. Systemwide 2,641 2,148 +23%
% U.S. System Restaurants 14% 12% +2 ppts.
In the fourth quarter, 164 multibrand restaurants were added in the U.S.,
bringing the full-year total of U.S. multibrand additions to 547. Multibrand
focus has been on expanded company testing of Pizza Hut/WingStreet multibrand
combinations and expansion of the Long John Silver's brand in combination with
A&W, Taco Bell or KFC. This results in operating two brands in one restaurant
location. Excluding the company-only expanded testing of Pizza Hut and
WingStreet multibrand combinations, franchisees opened over 55% of multibrand
additions in 2004. WingStreet is a brand recently created by Yum! Brands.
FRANCHISE GROWTH AND FEES
- -------------------------
Fourth Quarter Full Year
-------------- --------------
Total Franchise Fees (million) $321 $1,019
Growth Vs. 2003 +8% +8%
Franchise Net New-Restaurant Growth +1% +1%
For the fourth quarter, favorable foreign currency conversion added 2
percentage points of franchise-fee growth. Excluding this factor, franchise fees
increased 6% driven by new-unit development, same-store-sales growth and the
effect of refranchising. Fourth-quarter and full-year growth was primarily
driven by international franchise new-restaurant development and worldwide
franchise same-store-sales growth.
LEASE ACCOUNTING CHANGES
A number of companies within our industry have recently announced
adjustments to their accounting for leases and the depreciation of leasehold
improvements. These adjustments were the result of a recent change in
interpretation of longstanding, generally accepted accounting principles in this
area. We first reviewed this issue during the fourth quarter of 2003 to ensure
that our accounting complied with the then-existing interpretation of GAAP. In
recent consultation with our external auditors, we have recorded minor
adjustments during the fourth quarter to conform our accounting in all instances
to this evolving interpretation. Accordingly, the depreciable lives of our
leasehold improvements now conform to the term of the lease, including options
in some instances, over which we are recording rent expense, including
escalations, on a straight-line basis.
The cumulative adjustment necessary to conform our accounting to this new
interpretation, primarily through increased U.S. depreciation expense, totaled
$11.5 million ($7 million after tax). The portions of this adjustment that
related to 2004 full year and 2004 fourth quarter were approximately $3 million
($2 million after tax) and $1 million respectively. As the adjustment was not
material to any of our prior financial statements, the full adjustment was
recorded in the current financial statements and no adjustment will be made to
prior financial statements. We anticipate that the impact of this change will
result in additional expense of $3 million in 2005.
TAX RATE
The company's fourth-quarter tax rate of 24.1% prior to special items was
4.4 percentage points below the rate for the 2003 fourth quarter. This boosted
fourth-quarter EPS by one cent beyond what was indicated in the company's prior
guidance on December 2, 2004, which called for a 3 percentage point decline. The
year-over-year decline in the tax rate was primarily due to the execution of
international tax-planning strategies and settlements in connection with the
closure of regular audit cycles.
CASH FLOW
For the full year, the company generated $1,131 million in net cash
provided by operating activities. Capital spending, including the acquisition of
franchise restaurants, was $683 million. Additionally, a substantial amount of
cash, $392 million, was generated from employee stock-option proceeds,
refranchising restaurants, and proceeds from sales of surplus property, plant
and equipment. In 2004, the company purchased a record $569 million of its own
shares and initiated its first quarterly dividend. Additionally, the company
completed an early redemption of its May 2005 bonds reducing debt over $300
million by year end. The majority of the company's remaining bond debt is due in
2011 and 2012.
SPECIAL ITEMS
As described in the second-quarter 2003 earnings release dated July 15,
2003, the company previously incurred a charge of $30 million related to a legal
judgment at Taco Bell in connection with Wrench et al. v. Taco Bell.
Subsequently, the company accrued prejudgment and post-judgment interest charges
of $12 million with respect to this judgment. We have settled this matter with
the Wrench plaintiffs and certain of our insurance carriers resulting in a
reduction of our previous accrual by $14 million. We intend to continue to seek
additional recoveries from our other insurance carriers during the periods in
question and from our former advertising agency. To the extent we are
successful, these recoveries will be treated as additional special-item gains in
the quarter(s) recognized. Special items also include $2 million in AmeriServe
recoveries during the quarter.
FIRST-QUARTER 2005 OUTLOOK
The company currently expects that it will achieve EPS of $0.51 prior to
special items in the first quarter of 2005. Including all factors, U.S.
restaurant margin is expected to decrease slightly versus last year's first
quarter. Inflation in U.S. commodity costs (meats and cheese) is expected to be
the key factor. The effect of higher commodity costs is expected to moderate
after the first quarter of 2005. This outlook assumes a first-quarter 2005 tax
rate equal to the expected effective rate for the full year 2005. Additionally,
some favorable foreign exchange benefit is expected.
FULL-YEAR 2005 OUTLOOK
The company expects earnings per share to grow at least 10% each year with
the continued execution of its four key strategies: (1) building dominant
restaurant brands in China, (2) driving profitable international expansion, (3)
improving restaurant operations, and (4) multibranding category-leading brands.
Based on the most current information, the company expects growth of at
least 10% prior to special items in EPS for 2005 to occur in this manner by
quarter and assumes the same tax rate for each quarter equal to the expected
effective rate for the full year 2005:
Q1 Q2 Q3 Q4
-------- -------- -------- --------
EPS Prior to Special Items $0.51 $0.56 $0.73 $0.80
% Growth +9 +2 +20 +10
Second-quarter 2005 growth is adversely impacted by higher facility actions
expense, an expected higher tax rate versus 2004, and costs associated with the
company's biennial international franchise convention.
Projected factors contributing to the company's original annual 2005 EPS
guidance were published in the company's release dated December 2, 2004, which
can be accessed at
http://investors.yum.com/ireye/ir_site.zhtml?ticker=YUM&script= 400&item_id='1'.
(Due to its length, this URL may need to be copied/pasted into your Internet
browser's address field. Remove the extra space if one exists.)
Based on current information, the company believes that those factors
remain reasonable.
For 2005, the company currently expects reported EPS of at least $2.60
prior to special items.
Annual Outlook
-------------------------------
Forecast Actual
2005 2004 Incr/(Decr)
--------- --------- -----------
EPS Prior to Special Items $2.60 $2.36 +10%
Special Items EPS $0.00 $0.06 NM
Reported EPS $2.60 $2.42 +7%
PERIOD 1 SALES
Period 1 estimated International Division system sales increased 8% prior
to foreign currency conversion or 13% after conversion to U.S. dollars. This
excludes results of the China Division, which reports on a calendar basis rather
than 13 periods. The China Division's first-month results will be reported
separately beginning with Period 2, 2005. Estimated U.S. blended same-store
sales at company restaurants increased 3% versus last year for the comparable
four-week period ended January 22, 2005.
International Division System-Sales Growth (Estimated)
- ------------------------------------------------------
Prior-Year
Reported (U.S.$) Local Currency Basis Local Currency Basis
---------------- -------------------- --------------------
Period 1 +13% +8% +4%
NOTE: The sales results of the China Division (the People's Republic
of China, Thailand and KFC Taiwan) will be reported starting with the
company's Period 2, 2005, sales release.
U.S. Company Same-Store-Sales Growth (Estimated)
- ------------------------------------------------
Period 1 2005 Period 1 2004
------------- -------------
U.S. BLENDED +3% +2%
Taco Bell +3% +3%
Pizza Hut +6% +2%
KFC +1% (1)%
INTERNATIONAL AND CHINA DIVISION HISTORICAL DATA
Historical data related to our new International Division and China
Division operating results and unit activity is available online. To access it,
please visit the following URL: http://www.yum.com/investors/sss.htm.
CONFERENCE CALL
Yum! Brands Inc. will host a conference call to review the company's
strategies and financial performance at 9:15 a.m. EST Wednesday, February 2,
2005.
For U.S. callers, the number is 877/815-2029. For international callers,
the number is 706/645-9271.
The call will be available for playback beginning at noon EST Wednesday,
February 2, through 11:59 p.m. EST Friday, February 18. To access the playback,
dial 800/642-1687 in the U.S.A. and 706/645-9291 internationally. The playback
pass code is 3292385.
The call and the playback can be accessed via the Internet by visiting Yum!
Brands' Web site: www.yum.com and selecting "4th Quarter Earnings Webcast."
NOTES & DEFINITIONS FOR TERMS USED THROUGHOUT THIS DOCUMENT
Notes:
Sales results for Period 2 (the four-week period ending February 19, 2005)
are scheduled to be released February 24, 2005, before market hours.
Sales and profit information included in the release is rounded to the
nearest million; however, percentage-point change calculations are based on
numbers that are not rounded.
Definitions:
Excl F/x represents the percentage change excluding the impact of foreign
currency translation. These amounts are calculated by translating current-year
results at prior-year average exchange rates. We believe elimination of the
foreign currency translation impact provides better year-to-year comparability
without the distortion of foreign currency fluctuations.
Franchise Fees include fees from unconsolidated affiliates (joint ventures)
and franchise and license restaurants. Fees include ongoing royalty and license
fees, initial fees for new restaurants and contract-renewal fees.
Franchise Restaurants include unconsolidated affiliates (joint ventures)
and franchise restaurants and exclude license restaurants.
Franchise Net New-Restaurant Growth is the year-over-year total of
franchise restaurant openings less franchise restaurant closings divided by the
prior year's franchise restaurant total.
New-Restaurant Openings include unconsolidated affiliates (joint ventures),
company-owned and franchise restaurants and exclude license restaurants.
Special Items include AmeriServe and other charges (credits), Wrench
litigation and cumulative effect of accounting change, net of tax. See
attachments to this press release for reconciliations of non-GAAP measurements
to GAAP results.
System Restaurants include unconsolidated affiliates (joint ventures),
company-owned and franchise restaurants but exclude license restaurants.
System-Sales Growth includes the results of all restaurants regardless of
ownership including unconsolidated affiliates, company-owned, franchise and
license restaurants. Sales of unconsolidated affiliates (joint ventures),
franchise and license restaurants generate franchise and license fees for the
company (typically at a rate of 4% to 6% of sales). Unconsolidated affiliates
(joint ventures), franchise and license restaurant sales are not included in
company sales we present on the Condensed Consolidated Statements of Income;
however, the franchise fees previously defined are included in the company's
revenues.
System Same-Store-Sales Growth is the estimated growth in sales of all
restaurants that have been open one year or more regardless of ownership
including unconsolidated affiliates (joint ventures), company-owned, franchise
and license restaurants.
Systemwide U.S. Blended Same-Store Sales include company, franchise and
license restaurants that have been open one year or more. U.S. blended
same-store sales include KFC, Pizza Hut, and Taco Bell restaurants only. U.S.
same-store sales for Long John Silver's and A&W Restaurants are not included.
U.S. Same-Store Sales include only company restaurants that have been open
one year or more. U.S. blended same-store sales include KFC, Pizza Hut, and Taco
Bell company-owned restaurants only. U.S. same-store sales for Long John
Silver's and A&W Restaurants are not included.
This announcement contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements include those
identified by such words as may, will, expect, project, anticipate, believe,
plan and other similar terminology. These "forward-looking" statements reflect
management's current expectations regarding future events and operating and
financial performance and are based on currently available data. However, actual
results are subject to future events and uncertainties, which could cause actual
results to differ from those projected in this announcement. Factors that can
cause actual results to differ materially include changes in global and local
business, economic and political conditions in the countries and territories
where Yum! Brands operates, including the effects of war and terrorist
activities; changes in currency exchange and interest rates; changes in
commodity, labor and other operating costs; changes in competition in the food
industry, consumer preferences, spending patterns and demographic trends; the
impact that any widespread illness or general health concern may have on our
business and the economy of the countries in which we operate; the effectiveness
of our operating initiatives and advertising and promotional efforts;
new-product and concept development by Yum! Brands and other food-industry
competitors; the success of our refranchising strategy; the ongoing business
viability of our franchise and license operators; our ability to secure
alternative distribution to our restaurants at competitive rates and to ensure
adequate supplies of restaurant products and equipment in our stores; publicity
that may impact our business and/or industry; severe weather conditions; effects
and outcomes of legal claims involving the company; changes in effective tax
rates; our actuarially determined casualty loss estimates; changes in
legislation and governmental regulations; and changes in accounting policies and
practices. Further information about factors that could affect Yum! Brands'
financial and other results are included in the company's Forms 10-Q and 10-K,
filed with the Securities and Exchange Commission.
Yum! Brands Inc., based in Louisville, Kentucky, is the world's largest
restaurant company in terms of system restaurants with more than 33,000
restaurants in more than 100 countries and territories. Four of the company's
restaurant brands -- KFC, Pizza Hut, Taco Bell and Long John Silver's -- are the
global leaders of the chicken, pizza, Mexican-style food and quick-service
seafood categories respectively. Yum! Brands is the worldwide leader in
multibranding, which offers consumers more choice and convenience at one
restaurant location from a combination of KFC, Taco Bell, Pizza Hut, A&W or Long
John Silver's brands. The company and its franchisees today operate over 2,800
multibrand restaurants. Outside the United States in 2004, the Yum! Brands'
system opened about three new restaurants each day of the year, making it one of
the fastest growing retailers in the world. For the past two years, the company
has been recognized in Fortune Magazine's top 50 "Best Companies for
Minorities," claiming the number-one spot for "managerial diversity."
Yum! Brands, Inc.
Consolidated Summary of Results
(amounts in millions, except per share amounts)
Quarter Year to date
----------------- % Change ----------------- % Change
12/25/04 12/27/03 B/(W) 12/25/04 12/27/03 B/(W)
-------- -------- ------- -------- -------- -------
Total Revenues $2,785 $2,653 5 $9,011 $8,380 8
Costs and expenses
Company restaurant
expenses 2,126 2,000 (6) 6,833 6,337 (8)
General and
administrative
expenses 335 322 (4) 1,056 945 (12)
Franchise and
license expenses 10 8 (16) 26 28 8
Facility actions 4 12 NM 26 36 NM
Other (income)
expense (20) (17) 16 (55) (41) 34
Wrench litigation
(income) expense (14) - NM (14) 42 NM
AmeriServe and
other charges
(credits) (2) (25) NM (16) (26) NM
-------- -------- -------- --------
Total costs
and expenses, net 2,439 2,300 (6) 7,856 7,321 (7)
-------- -------- -------- --------
Operating profit 346 353 (2) 1,155 1,059 9
Interest
expense, net 33 50 32 129 173 25
-------- -------- -------- --------
Income before
income taxes
and cumulative
effect of
accounting
change 313 303 3 1,026 886 16
Income tax
provision 78 89 12 286 268 (7)
-------- -------- -------- --------
Income before
cumulative
effect of
accounting
change 235 214 10 740 618 20
Cumulative
effect of
accounting
change, net
of tax - - - - (1) NM
-------- -------- -------- --------
Net income $235 $214 10 $740 $617 20
======== ======== ======== ========
Basic EPS Data
- --------------
EPS $0.80 $0.73 10 $2.54 $2.10 21
======== ======== ======== ========
Average shares
outstanding 293 294 - 291 293 1
======== ======== ======== ========
Diluted EPS
Data
- --------------
EPS $0.77 $0.70 10 $2.42 $2.02 20
======== ======== ======== ========
Average shares
outstanding 307 308 - 305 306 -
======== ======== ======== ========
Dividends declared
per common share $0.20 $- NM $0.30 $- NM
======== ======== ======== ========
See accompanying notes.
Wrench litigation (income) expense, AmeriServe and other charges
(credits) and Cumulative effect of accounting change, net of
tax have been summed and referred to as "Special Items"
throughout this press release. See accompanying reconciliation
of non-GAAP measurements to GAAP results.
Yum! Brands, Inc.
WORLDWIDE Operating Results
(amounts in millions)
Quarter Year to date
----------------- % Change ----------------- % Change
12/25/04 12/27/03 B/(W) 12/25/04 12/27/03 B/(W)
-------- -------- ----------- -------- -------- -----------
Company
sales $2,464 $2,356 5 $7,992 $7,441 7
Franchise
and license
fees 321 297 8 1,019 939 8
-------- -------- -------- --------
Revenues 2,785 2,653 5 9,011 8,380 8
-------- -------- -------- --------
Company restaurants
Food and
paper 792 732 (8) 2,538 2,300 (10)
Payroll
and employee
benefits 642 628 (2) 2,112 2,024 (4)
Occupancy
and other
operating
expenses 692 640 (8) 2,183 2,013 (8)
-------- -------- -------- --------
2,126 2,000 (6) 6,833 6,337 (8)
General and
administrative
expenses 335 322 (4) 1,056 945 (12)
Franchise
and license
expenses 10 8 (16) 26 28 8
Facility
actions 4 12 NM 26 36 NM
Other (income)
expense (20) (17) 16 (55) (41) 34
-------- -------- -------- --------
2,455 2,325 (6) 7,886 7,305 (8)
-------- -------- -------- --------
Operating
profit before
special items 330 328 - 1,125 1,075 5
Interest
expense, net 33 50 32 129 173 25
Income tax
provision 72 80 10 275 274 -
-------- -------- -------- --------
Earnings
before
special
items $225 $198 13 $721 $628 15
======== ======== ======== ========
Tax rate
before
special
items 24.1% 28.5% 4.4 ppts. 27.6% 30.3% 2.7 ppts.
======== ======== ======== ========
Diluted
EPS
before
special
items $0.73 $0.65 13 $2.36 $2.06 15
======== ======== ======== ========
Company
sales 100.0% 100.0% 100.0% 100.0%
Food and
paper 32.1 31.1 (1.0) ppts. 31.8 30.9 (0.9) ppts.
Payroll and
employee
benefits 26.1 26.6 0.5 ppts. 26.4 27.2 0.8 ppts.
Occupancy
and other
operating
expenses 28.1 27.1 (1.0) ppts. 27.3 27.1 (0.2) ppts.
-------- -------- -------- --------
Restaurant
margin 13.7% 15.2% (1.5) ppts. 14.5% 14.8% (0.3) ppts.
======== ======== ======== ========
Reconciliation of Segment Operating Profit to Reported Operating
Profit
- ----------------------------------------------------------------------
U.S.
operating
profit $210 $241 (13) $777 $812 (4)
International
operating
profit 160 144 13 542 441 23
Unallocated
and corporate
expense (64) (72) 12 (204) (179) (14)
Unallocated
other
income
(expense) 2 (2) NM (2) (3) NM
Unallocated
facility
actions 22 17 NM 12 4 NM
-------- -------- -------- --------
Operating
profit
before
special
items 330 328 - 1,125 1,075 5
Wrench
litigation
income
(expense) 14 - NM 14 (42) NM
AmeriServe
and other
(charges)
credits 2 25 NM 16 26 NM
-------- -------- -------- --------
Reported
operating
profit $346 $353 (2) $1,155 $1,059 9
======== ======== ======== ========
See accompanying notes and reconciliations of non-GAAP
measurements to GAAP results.
Yum! Brands, Inc.
UNITED STATES Operating Results
(amounts in millions)
Quarter Year to date
------------------- % Change ------------------ % Change
12/25/04 12/27/03 B/(W) 12/25/04 12/27/03 B/(W)
--------- --------- --------- --------- -------- ---------
Company
sales $1,564 $1,563 - $5,163 $5,081 2
Franchise
and
license
fees 184 175 4 600 574 4
------- ------- ------- -------
Revenues 1,748 1,738 - 5,763 5,655 2
------- ------- ------- -------
Company restaurants
Food and
paper 477 453 (5) 1,546 1,463 (6)
Payroll
and
employee
benefits 474 483 2 1,573 1,576 -
Occupancy
and
other
operating
expenses 416 398 (4) 1,333 1,303 (2)
------- ------- ------- -------
1,367 1,334 (2) 4,452 4,342 (3)
General and
administrative
expenses 154 144 (7) 501 469 (7)
Franchise
and
license
expenses 8 6 (24) 19 16 (18)
Facility
actions 9 13 NM 14 16 NM
------- ------- ------- -------
1,538 1,497 (3) 4,986 4,843 (3)
------- ------- ------- -------
Operating
profit $210 $241 (13) $777 $812 (4)
======= ======= ======= =======
Company
sales 100.0% 100.0% 100.0% 100.0%
Food and
paper 30.5 28.9 (1.6) ppts. 29.9 28.8 (1.1) ppts.
Payroll
and
employee
benefits 30.3 30.8 0.5 ppts. 30.5 31.0 0.5 ppts.
Occupancy
and
other
operating
expenses 26.5 25.5 (1.0) ppts. 25.8 25.6 (0.2) ppts.
------- ------- ------- -------
Restaurant
margin 12.7% 14.8% (2.1) ppts. 13.8% 14.6%(0.8) ppts.
======= ======= ======= =======
See accompanying notes.
Yum! Brands, Inc.
INTERNATIONAL Operating Results
(amounts in millions)
Quarter Year to date
----------------- % Change ----------------- % Change
12/25/04 12/27/03 B/(W) 12/25/04 12/27/03 B/(W)
-------- -------- ----------- -------- -------- -----------
Company
sales $900 $793 13 $2,829 $2,360 20
Franchise
and
license
fees 137 122 13 419 365 15
-------- -------- -------- --------
Revenues 1,037 915 13 3,248 2,725 19
-------- -------- -------- --------
Company restaurants
Food
and
paper 315 279 (13) 992 837 (18)
Payroll
and
employee
benefits 168 145 (16) 539 448 (20)
Occupancy
and other
operating
expenses 276 242 (14) 850 710 (20)
-------- -------- -------- --------
759 666 (14) 2,381 1,995 (19)
General
and
administrative
expenses 117 105 (12) 351 297 (18)
Franchise
and
license
expenses 2 3 29 7 12 41
Facility
actions 17 16 NM 24 24 NM
Other
(income)
expense (18) (19) 4 (57) (44) 32
-------- -------- -------- --------
877 771 (14) 2,706 2,284 (18)
-------- -------- -------- --------
Operating
profit $160 $144 13 $542 $441 23
======== ======== ======== ========
Company
sales 100.0% 100.0% 100.0% 100.0%
Food and
paper 35.0 35.3 0.3 ppts. 35.1 35.5 0.4 ppts.
Payroll
and
employee
benefits 18.7 18.3 (0.4) ppts. 19.1 19.0 (0.1) ppts.
Occupancy
and other
operating
expenses 30.7 30.5 (0.2) ppts. 30.0 30.0 -
-------- -------- -------- --------
Restaurant
margin 15.6% 15.9% (0.3) ppts. 15.8% 15.5% 0.3 ppts.
======== ======== ======== ========
See accompanying notes.
Yum! Brands, Inc.
Consolidated Balance Sheets
(amounts in millions)
12/25/04 12/27/03
--------- ---------
ASSETS
Current Assets
Cash and cash equivalents $ 62 $192
Short-term investments, at cost 54 15
Accounts and notes receivable, less allowance:
$22 in 2004 and $25 in 2003 192 150
Inventories 76 67
Assets classified as held for sale 7 96
Prepaid expenses and other current assets 135 65
Deferred income taxes 156 165
Advertising cooperative assets, restricted 65 56
--------- ---------
Total Current Assets 747 806
Property, plant and equipment, net 3,439 3,280
Goodwill 553 521
Intangible assets, net 347 357
Investments in unconsolidated affiliates 194 184
Other assets 416 472
--------- ---------
Total Assets $5,696 $5,620
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and other current liabilities $1,160 $1,157
Dividends payable 29 -
Income taxes payable 111 238
Short-term borrowings 11 10
Advertising cooperative liabilities 65 56
--------- ---------
Total Current Liabilities 1,376 1,461
Long-term debt 1,731 2,056
Other liabilities and deferred credits 994 983
--------- ---------
Total Liabilities 4,101 4,500
--------- ---------
Shareholders' Equity
Preferred stock, no par value, 250 shares
authorized; no shares issued - -
Common stock, no par value, 750 shares authorized;
290 shares and 292 shares issued in 2004 and 2003,
respectively 659 916
Retained earnings 1,067 414
Accumulated other comprehensive income (loss) (131) (210)
--------- ---------
Total Shareholders' Equity 1,595 1,120
--------- ---------
Total Liabilities and Shareholders' Equity $5,696 $5,620
========= =========
See accompanying notes.
Yum! Brands, Inc.
Consolidated Statements of Cash Flows
(amounts in millions)
Year to date
-------------------
12/25/04 12/27/03
--------- ---------
Cash Flows - Operating Activities
Net income $740 $617
Adjustments to reconcile net income to net cash
provided by operating activities:
Cumulative effect of accounting change, net of
tax - 1
Depreciation and amortization 448 401
Facility actions 26 36
Wrench litigation (income) expense (14) 42
AmeriServe and other charges (credits) - (3)
Contributions to defined benefit pension plans (55) (132)
Other liabilities and deferred credits 21 17
Deferred income taxes 142 (23)
Other non-cash charges and credits, net 25 32
Changes in operating working capital, excluding
effects of acquisitions and dispositions:
Accounts and notes receivable (39) 2
Inventories (7) (1)
Prepaid expenses and other current assets (5) -
Accounts payable and other current liabilities (20) (32)
Income taxes payable (131) 96
--------- ---------
Net change in operating working capital (202) 65
--------- ---------
Net Cash Provided by Operating Activities 1,131 1,053
--------- ---------
Cash Flows - Investing Activities
Capital spending (645) (663)
Proceeds from refranchising of restaurants 140 92
Acquisition of restaurants from franchisees (38) (41)
Short-term investments (36) 13
Sales of property, plant and equipment 52 46
Other, net 41 34
--------- ---------
Net Cash Used in Investing Activities (486) (519)
--------- ---------
Cash Flows - Financing Activities
Revolving Credit Facility activity
Three months or less, net 19 (153)
Repayments of long-term debt (371) (17)
Short-term borrowing-three months or less, net - (137)
Repurchase shares of common stock (569) (278)
Employee stock option proceeds 200 110
Dividends paid on common shares (58) -
--------- ---------
Net Cash Used in Financing Activities (779) (475)
--------- ---------
Effect of Exchange Rate on Cash and Cash
Equivalents 4 3
--------- ---------
Net (Decrease) Increase in Cash and
Cash Equivalents (130) 62
Cash and Cash Equivalents - Beginning of Year 192 130
--------- ---------
Cash and Cash Equivalents - End of Year $62 $192
========= =========
See accompanying notes.
Reconciliation of Non-GAAP Measurements to GAAP Results
(amounts in millions, except per share amounts)
In addition to the results provided in accordance with U.S.
Generally Accepted Accounting Principles ("GAAP") throughout
this document, the Company has provided non-GAAP measurements
which present operating results on a basis before special
items. Special items include the GAAP income statement captions
of Wrench litigation (income) expense, AmeriServe and other
charges (credits) and the Cumulative effect of accounting
change, net of tax. These amounts are described in (e), (f)
and (g) in the accompanying notes.
The Company uses earnings before special items as a key
performance measure of results of operations for purposes of
evaluating performance internally. This non-GAAP measurement
is not intended to replace the presentation of our financial
results in accordance with GAAP. Rather, the Company believes
that the presentation of earnings before special items
provides additional information to investors to facilitate the
comparison of past and present operations, excluding items
that the Company does not believe are indicative of our
ongoing operations.
Quarter Year to date
------------------- -------------------
12/25/04 12/27/03 12/25/04 12/27/03
--------- --------- --------- ---------
Detail of Special Items
- ------------------------------
Wrench litigation income
(expense) $14 $- $14 $(42)
AmeriServe and other (charges)
credits 2 25 16 26
Cumulative effect of
accounting change - - - (2)
--------- --------- --------- ---------
Total special items 16 25 30 (18)
Tax on special items (6) (9) (11) 7
--------- --------- --------- ---------
Special items, net of tax $10 $16 $19 $(11)
========= ========= ========= =========
Average shares outstanding 307 308 305 306
========= ========= ========= =========
Special items diluted EPS $0.04 $0.05 $0.06 $(0.04)
========= ========= ========= =========
Reconciliation of Earnings
Before Special Items to Net
Income
- ------------------------------
Earnings before special items $225 $198 $721 $628
Special items, net of tax 10 16 19 (11)
--------- --------- --------- ---------
Net income $235 $214 $740 $617
========= ========= ========= =========
Reconciliation of EPS Before
Special Items to Reported EPS
- ------------------------------
Diluted EPS before special
items $0.73 $0.65 $2.36 $2.06
Special items EPS 0.04 0.05 0.06 (0.04)
--------- --------- --------- ---------
Reported EPS $0.77 $0.70 $2.42 $2.02
========= ========= ========= =========
Notes to the Consolidated Summary of Results, Consolidated Statements
of Cash Flows and Consolidated Balance Sheets
(amounts in millions, except per share amounts)
(a) Percentages may not recompute due to rounding.
(b) Franchisee sales represents the combined estimated sales of
unconsolidated affiliate, franchise and license restaurants.
Franchisee sales, which are not included in the Company sales
we present on the Consolidated Statements of Income, generate
franchise and license fees (typically at a rate of 4% to 6% of
sales) that are included in the Company's revenues.
Quarter % Year to date %
------------------ Change ------------------ Change
12/25/04 12/27/03 B/(W) 12/25/04 12/27/03 B/(W)
--------- -------- ------ -------- --------- -------
United States
Company sales $1,564 $1,563 - $5,163 $5,081 2
Franchisee
sales 3,579 3,453 4 11,724 11,257 4
International
Company sales $900 $793 13 $2,829 $2,360 20
Franchisee
sales 2,630 2,335 13 8,189 7,213 14
Worldwide
Company sales $2,464 $2,356 5 $7,992 $7,441 7
Franchisee
sales 6,209 5,788 7 19,913 18,470 8
(c) Facility actions included the following:
Quarter Year to date
------------------- -------------------
12/25/04 12/27/03 12/25/04 12/27/03
--------- --------- --------- ---------
Store closure costs $- $8 $(3) $6
Asset impairment charges 26 21 41 34
Refranchising net losses
(gains) (22) (17) (12) (4)
--------- --------- --------- ---------
Facility actions $4 $12 $26 $36
========= ========= ========= =========
(d) Other (income) expense primarily includes equity income from
investments in unconsolidated affiliates.
(e) Income of $14 million was recorded as Wrench litigation
(income) expense for both the quarter and year to date ended
December 25, 2004. The amount resulted from settlements with
the plaintiffs in the Wrench litigation and certain of our
insurance carriers which allowed us to reduce amounts
previously accrued.
(f) Income of $2 million and $16 million was recorded as
AmeriServe and other charges (credits) for the quarter and
year to date ended December 25, 2004. The amount primarily
resulted from cash recoveries related to the AmeriServe
bankruptcy reorganization process.
(g) Effective December 29, 2002, the Company adopted Statement of
Financial Accounting Standards No. 143, "Accounting for Asset
Retirement Obligations" ("SFAS 143"). SFAS 143 addresses the
financial accounting and reporting for legal obligations
associated with the retirement of tangible long-lived assets
and the associated asset retirement costs. As a result of
obligations under certain leases that are within the scope of
SFAS 143, the Company recorded a cumulative effect adjustment
of $2 million ($1 million after tax) during 2003.
(h) We participate in various advertising cooperatives with our
franchisees and licensees. In certain of these cooperatives we
possess majority voting rights, and thus control the
cooperatives. We have previously reported the related assets
and liabilities of those advertising cooperatives we control
in accounts and notes receivable, prepaid expenses and other
current assets and accounts payable and other current
liabilities, as appropriate. We have now summed all assets and
liabilities of these advertising cooperatives and reported the
amounts as advertising cooperative assets, restricted and
advertising cooperative liabilities in the Consolidated
Balance Sheet as of December 25, 2004. We have reclassified
those amounts in the Consolidated Balance Sheet as of December
27, 2003 for comparative purposes.
(i) For the quarter and year to date ended December 25, 2004, we
repurchased approximately 5.9 million shares and 14.0 million
shares of our Common Stock at an average price of $46 per
share and $41 per share, respectively.
Yum! Brands, Inc.
Restaurant Units Activity Summary
For the Year Ended December 25, 2004
Total
Unconsolidated Excluding
Company Affiliates Franchisees Licensees(a)
------- -------------- ----------- ------------
Total U.S.
Beginning of Year 5,094 6 13,566 18,666
New Builds 146 - 227 373
Acquisitions 61 - (61) -
Refranchising &
Licensing (113) - 112 (1)
Closures & Divestitures (199) (6) (365) (570)
Other - - 3 3
------- -------------- ----------- ------------
End of Year 4,989 - 13,482 18,471
======= ============== =========== ============
% of Total 27% - 73% 100%
Total International
Beginning of Year 2,760 1,506 7,905 12,171
New Builds(b) 311 178 588 1,077
Acquisitions 11 11 (22) -
Refranchising &
Licensing (204) - 204 -
Closures & Divestitures (120) (25) (286) (431)
Other (4) (8) (13) (25)
------- -------------- ----------- ------------
End of Year 2,754 1,662 8,376 12,792
======= ============== =========== ============
% of Total 22% 13% 65% 100%
Total System
Beginning of Year 7,854 1,512 21,471 30,837
New Builds(b) 457 178 815 1,450
Acquisitions 72 11 (83) -
Refranchising &
Licensing (317) - 316 (1)
Closures & Divestitures (319) (31) (651) (1,001)
Other (4) (8) (10) (22)
------- -------------- ----------- ------------
End of Year 7,743 1,662 21,858 31,263
======= ============== =========== ============
% of Total 25% 5% 70% 100%
(a) The total excludes 2,139 U.S. and 206 International licensee
units. The U.S. licensee unit count includes 1,194 Pizza Huts,
870 Taco Bells and 75 KFCs. The International licensee unit
count includes 94 Pizza Huts, 65 KFCs, 45 Taco Bells, 1 Long
John Silver's and 1 A&W.
(b) The total includes 1 Company new build for an Asian food
concept in China.
Yum! Brands, Inc.
Restaurant Units Activity Summary
For the Year Ended December 25, 2004
United States
- ----------------------------------------------------------------------
Total
Excluding
Company Franchisees Licensees
----------- ----------- ---------
Pizza Hut U.S.
Beginning of Year 1,776 4,624 6,400
New Builds 49 68 117
Acquisitions 56 (56) -
Refranchising & Licensing (74) 74 -
Closures & Divestitures (66) (145) (211)
Other - - -
----------- ----------- ---------
End of Year 1,741 4,565 6,306
=========== =========== =========
% of Total 28% 72% 100%
KFC U.S.
Beginning of Year 1,252 4,204 5,456
New Builds 36 90 126
Acquisitions - - -
Refranchising & Licensing (7) 6 (1)
Closures & Divestitures (33) (98) (131)
Other - - -
----------- ----------- ---------
End of Year 1,248 4,202 5,450
=========== =========== =========
% of Total 23% 77% 100%
Taco Bell U.S.
Beginning of Year 1,284 3,743 5,027
New Builds 23 47 70
Acquisitions 1 (1) -
Refranchising & Licensing (15) 15 -
Closures & Divestitures (10) (57) (67)
Other - - -
----------- ----------- ---------
End of Year 1,283 3,747 5,030
=========== =========== =========
% of Total 26% 74% 100%
Long John Silver's U.S.
Beginning of Year 701 502 1,203
New Builds 37 15 52
Acquisitions 4 (4) -
Refranchising & Licensing (8) 8 -
Closures & Divestitures (34) (22) (56)
Other - 1 1
----------- ----------- ---------
End of Year 700 500 1,200
=========== =========== =========
% of Total 58% 42% 100%
A&W U.S.
Beginning of Year 81 493 574
New Builds 1 7 8
Acquisitions - - -
Refranchising & Licensing (9) 9 -
Closures & Divestitures (56) (43) (99)
Other - 2 2
----------- ----------- ---------
End of Year 17 468 485
=========== =========== =========
% of Total 4% 96% 100%
Yum! Brands, Inc.
Restaurant Units Activity Summary
For the Year Ended December 25, 2004
International
- ----------------------------------------------------------------------
Total
Unconsolidated Excluding
Company Affiliates Franchisees Licensees
------- -------------- ----------- ---------
KFC International
Beginning of Year 1,685 773 4,835 7,293
New Builds 216 137 288 641
Acquisitions 11 8 (19) -
Refranchising & Licensing (105) - 105 -
Closures & Divestitures (56) (20) (157) (233)
Other - (1) (24) (25)
------- -------------- ----------- ---------
End of Year 1,751 897 5,028 7,676
======= ============== =========== =========
% of Total 23% 12% 65% 100%
Pizza Hut International
Beginning of Year 1,021 733 2,708 4,462
New Builds 94 41 252 387
Acquisitions - 3 (3) -
Refranchising & Licensing (66) - 66 -
Closures & Divestitures (61) (5) (107) (173)
Other 1 (7) 10 4
------- -------------- ----------- ---------
End of Year 989 765 2,926 4,680
======= ============== =========== =========
% of Total 21% 16% 63% 100%
A&W International
Beginning of Year - - 182 182
New Builds - - 39 39
Acquisitions - - - -
Refranchising & Licensing - - - -
Closures & Divestitures - - (12) (12)
Other - - - -
End of Year - - - -
------- -------------- ----------- ---------
% of Total - - 209 209
======= ============== =========== =========
- - 100% 100%
Taco Bell International
Beginning of Year 54 - 150 204
New Builds - - 4 4
Acquisitions - - - -
Refranchising & Licensing (33) - 33 -
Closures & Divestitures (3) - (8) (11)
Other (5) - 1 (4)
------- -------------- ----------- ---------
End of Year 13 - 180 193
======= ============== =========== =========
% of Total 7% - 93% 100%
Long John Silver's
International
Beginning of Year - - 30 30
New Builds - - 5 5
Acquisitions - - - -
Refranchising & Licensing - - - -
Closures & Divestitures - - (2) (2)
Other - - - -
------- -------------- ----------- ---------
End of Year - - 33 33
======= ============== =========== =========
% of Total - - 100% 100%
Yum! Brands, Inc.
United States Multibrand Restaurants
For the Year Ended December 25, 2004
United States(a)
-----------------------------------
Gross
Additions Multibrand Restaurants
Year to in Operation at 12/25/04
Date ------------------------
12/25/04 Company Franchise Total
---------- ------- --------- ------
KFC
Taco Bell 22 181 492 673
A&W 57 126 184 310
Pizza Hut 5 99 43 142
Long John Silver's 76 62 70 132
Taco Bell/Pizza Hut 3n1 - 19 24 43
Wing Works - 26 - 26
---------- ------- --------- ------
160 513 813 1,326
Taco Bell
Pizza Hut 7 315 285 600
Long John Silver's 42 66 23 89
Backyard Burgers 2 10 - 10
A&W - 2 - 2
---------- ------- --------- ------
51 393 308 701
Pizza Hut
WingStreet 270 318 9 327
KFC - - 4 4
Pasta Bravo 1 2 1 3
Taco Bell - - 1 1
Wing Works - 1 - 1
---------- ------- --------- ------
271 321 15 336
Long John Silver's
A&W 65 164 114 278
---------- ------- --------- ------
Total 547 1,391 1,250 2,641
========== ======= ========= ======
Multibrand conversions increase the sales and points of
distribution for the second brand added to a restaurant but do
not result in an additional unit count. Similarly, a new
multibrand restaurant, while increasing sales and points of
distribution for two brands, results in just one additional
unit count.
(a) Amounts do not reflect 183 International multibrand units in
operation at the end of the period. The International
multibrand unit count reflects a decrease of 18 units from the
2003 year end multibrand unit count, related to corrections,
primarily in Canada.
CONTACT: Yum! Brands Inc., Louisville
Analysts:
Tim Jerzyk, Vice President Investor Relations
888-298-6986
or
Quan Nghe, Director Investor Relations
888-298-6986
or
Media:
Amy Sherwood, Vice President Public Relations
502-874-8200