Yum! Brands, Inc

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International Guild of Hospitality & Restaurant Managers

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Louisville , KY 40213

Phone: (502) 874-8300
Fax: (502) 454-2410

YUM! Brands, Inc. (YUM), incorporated in 1997, is a quick service restaurant (QSR) company with nearly 33,000 restaurants in over 100 countries and territories. YUM is made up of six operating companies organized around five restaurant concepts, including its three original concepts, KFC, Pizza Hut and Taco Bell, and two acquired concepts, Long John Silver's (LJS) and A&W All-American Food Restaurants (A&W) (the Concepts). The six operating companies are KFC, Pizza Hut, Taco Bell, LJS, A&W and YUM Restaurants International (YRI). Through its five Concepts, the Company develops, operates, franchises and licenses a worldwide system of restaurants that prepare, package and sell a menu of food items. These restaurants are operated by the Company or, under the terms of franchise or license agreements, by franchisees or licensees that are independent third parties or by affiliates in which the Company owns a non-controlling equity interest. In each Concept, consumers can dine in and/or carry out food. In addition, Taco Bell, KFC, LJS and A&W offer a drive-thru option in many stores. Pizza Hut offers a drive-thru option on a much more limited basis. Pizza Hut and, on a much more limited basis, KFC, offer delivery service.

KFC

KFC operates in 88 countries and territories throughout the world. As of the fiscal year ended December 28, 2002 (fiscal 2002), KFC had 5,472 units in the United States and 6,890 units outside the United States. Approximately 23% of the United States units and 22% of the non-United States units were operated by the Company.

While product offerings vary throughout the worldwide system, traditional KFC restaurants offer fried chicken-on-the-bone products, primarily marketed under the names Original Recipe and Extra Tasty Crispy. Other principal entree items include chicken sandwiches (including the Twister), Colonel's Crispy Strips, Popcorn Chicken and, seasonally, Chunky Chicken Pot Pies. KFC restaurants also offer a variety of side items, such as biscuits, mashed potatoes and gravy, coleslaw, corn, Potato Wedges (in the United States) and french fries (outside of the United States), as well as desserts.

Pizza Hut

The first Pizza Hut restaurant was opened in 1958 in Wichita, Kansas, and within a year, the first franchise unit was opened. Pizza Hut is a restaurant chain specializing in the sale of ready-to-eat pizza products. Pizza Hut operates in 85 countries and territories throughout the world. As of the fiscal year ended 2002, Pizza Hut had 7,599 units in the United States and 4,431 units outside of the United States. Approximately 23% of the United States units and 18% of the non-United States units were operated by the Company.

Pizza Hut features a variety of pizzas, which may include Pan Pizza, Thin 'n Crispy, Hand Tossed, Sicilian, Stuffed Crust, Twisted Crust, The Big New Yorker, The Insider and The Chicago Dish. Each of these pizzas is offered with a variety of different toppings. In some restaurants, Pizza Hut also offers breadsticks, pasta, salads and sandwiches.

Taco Bell

The first Taco Bell restaurant was opened in 1962 in Downey, California. In 1964, the first Taco Bell franchise was sold. Taco Bell operates in 12 countries and territories throughout the world. As of the fiscal year ended 2002, there were 6,165 Taco Bell units in the United States and 267 units outside of the United States. Approximately 21% of the United States units and 14% of the non-United States units were operated by the Company.

Taco Bell specializes in Mexican-style food products, including various types of tacos, burritos, gorditas, chalupas, quesadillas, salads, nachos and other related items. In addition, proprietary entree items include Grilled Stuft Burritos and Border Bowls.

LJS

The first LJS restaurant opened in 1969. The first LJS franchise unit opened later the same year. LJS operates in five countries and territories throughout the world. As of the fiscal year ended 2002, there were 1,221 LJS units in the United States and 28 units outside the United States. Approximately 61% of the United States units were operated by the Company. All non-United States units were operated by franchisees. LJS features a variety of seafood items, including meals featuring batter-dipped fish, chicken, shrimp and hushpuppies.

A&W

A&W operates in 17 countries and territories throughout the world. As of the fiscal year ended 2002, there were 665 A&W units in the United State, and 182 units outside the United States. Approximately 19% of the United States units were operated by the Company. All non-United States units were operated by franchisees. A&W serves A&W draft Root Beer and a signature A&W Root Beer float, as well as all-American pure-beef hamburgers and hot dogs.

YRI

The international operations of the five Concepts are consolidated into a separate operating company (YRI), which has directed its focus toward franchise system growth and concentration of Company development in those markets in which it believes sufficient scale is achievable. YRI has developed global systems and tools designed to improve marketing, operations consistency, product delivery, market planning and development and franchise support capability.

As of the fiscal year ended 2002, YRI had 11,798 units. Approximately 20% of these units were operated by the Company. In 2002, YRI accounted for 35 % of the Company's total system sales and 31% of its revenues.

Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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