Yum! Brands, Inc., based in Louisville, Ky., is the world's largest restaurant company in terms of system restaurants with more than 35,000 restaurants in more than 110 countries and territories. Four of our restaurant brands - KFC, Long John Silver's, Pizza Hut and Taco Bell - are the global leaders of the chicken, quick-service seafood, pizza and Mexican-style food categories. A&W Restaurants is the longest running quick-service franchise chain in America. In 2007, Yum! Brands generated more than $10 billion in total revenues, including company sales and franchise fees.
Yum! is building a vibrant global business by focusing on key growth strategies:
- Building leading brands across China in every significant category
- Drive aggressive international expansion and build strong brands everywhere
- Dramatically improve U.S. brand positions, consistency and returns
- Drive industry-leading shareholder and franchisee
value
We have a great China business with tremendous scale and economics, and our goal is to continue to build dominant China brands. We also have a very strong and profitable broad-based international business, which we continue to grow. We are focused on running great restaurants and, we are the worldwide leader of multibranding – combining two brands and greater consumer choice under one roof.
The Yum! China Division (includes mainland China, Thailand and KFC Taiwan), based in Shanghai, has been reported separately since the beginning of 2005 due to its size, unique strength and importance. Today our Yum! China Division has more than 3,100 system restaurants (Q1 2008).
Mainland China is our number one market for new company restaurant development worldwide. In 2007, operating profits for the China Division were $375 million. Our strategy is to be the leader in every significant food service category in mainland China. KFC is the number one quick-service restaurant brand and Pizza Hut is the number one casual dining brand in mainland China.
Yum! Restaurants International (YRI), based in Dallas, Texas, is the largest division of Yum! Brands with more than 12,400 restaurants outside the U.S. (excluding Yum! China Division). In 2007, operating profits for YRI were more than $480 million. In each of the last eight years, YRI has opened over 700 new restaurants.
Outside the United States in 2007, 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. We have a large, growing, profitable, high-return international business and a strong growth opportunity with two global brands, KFC and Pizza Hut.
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 4,000 multibrand restaurants.
Yum!'s formula for success is centered on putting people capability first because when we do that, we satisfy our customers and generate more profits.
Around the world, our more than 1,000,000 Customer Maniacs are striving each and every day to put a Yum! on our customers' faces.
We're building an operating culture dedicated to 100% CHAMPS with a Yes! Attitude. CHAMPS is centered on the executional basics that deliver great customer service including Cleanliness, Hospitality, Accuracy, Maintenance, Product Quality and Speed. Our focus is to execute CHAMPS with passion, urgency and excellence, so that we will drive same store sales growth in every restaurant.
For the past four years, the company has been recognized as one of Fortune Magazine's "Top 50 Employers for Minorities." It also has been recognized as one of the "Top 50 Employers for Women" by Fortune, one of the "40 Best Companies for Diversity" by Black Enterprise Magazine for the past two years and one of Black Enterprise's "30 Hottest Franchises for 2006," one of the "Corporate 100 Companies Providing Opportunities for Hispanics" by Hispanic Magazine, one of the "Top 50 Corporations for Supplier Diversity" by Hispanic Trends Magazine and by BusinessWeek as one of the "Top 15 Companies for In-Kind Corporate Philanthropy."
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.
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