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Comparison of Worldwide Units*
Yum! Brands
Burger King
Domino's Pizza
Dairy Queen

    *in thousands, year end 2001

The figures below don't include Long John Silvers and A&W acquisition data.

Yum! Brands, Inc., a Fortune 300 company, operates KFC, Pizza Hut, Taco Bell, Long John Silvers and A&W restaurants worldwide. Yum! Brands is the world’s largest quick-service restaurant company in terms of system units — more than 30,000 restaurants around the world in more than 100 countries and territories. Yum! Brands’ five brands, KFC, Pizza Hut and Taco Bell, are global leaders of the chicken, pizza and Mexican restaurant categories, respectively, and with the acquision of Long John Silvers and A&W, Yum! Brands has even more opportunity to multibrand. Yum! Brands' global system sales totaled more than $22 billion in the year 2001.

KFC, based in Louisville, Kentucky, is the world’s most popular chicken restaurant chain, specializing in Original Recipe®, Extra Crispy™ and Colonel’s Crispy Strips® chicken with homestyle sides and freshly made chicken sandwiches. Since its founding by Colonel Harland Sanders in 1952, KFC has been serving customers delicious, already-prepared complete family meals at affordable prices. KFC has more than 11,000 outlets in 85 countries and territories around the world, serving some 8 million customers each day.

Pizza Hut, based in Dallas, Texas, is the world’s largest pizza restaurant company, with nearly 8,000 restaurants and delivery units in the United States and more than 4,200 units in 87 countries. The company is the recognized leader of the $25 billion pizza category. Menu items include popular choices such as Hand Tossed, Thin ’n Crispy, Pan, Stuffed Crust, and the complete Lover’s line. Innovative pizzas that have also become favorites include the Big New Yorker, the Edge, the Insider, and Twisted Crust. In 1958, Pizza Hut opened in Wichita, Kansas, and began selling what are still considered “the best pizzas under one roof.”

Taco Bell, based in Irvine, California, is the largest Mexican-style quick-service restaurant in the world—a status quickly reached after the brand’s 1962 beginning. Currently, more than 35 million people visit Taco Bell restaurants in any given week in the U.S.A., and, they purchase 4.5 million tacos each day in our restaurants as well as other popular menu items such as burritos, nachos, chalupas, and gorditas. Additionally, half the U.S. population sees a Taco Bell commercial at least once a week, generating significant brand recognition.

Yum! Restaurants International , based in Dallas, Texas, is the division of Yum! Brands that operates the five global brands, KFC, Pizza Hut, Taco Bell, Long John Silvers and A&W outside the U.S.A. Yum! Restaurants International is Yum! Brands’ fastest growing and most profitable division. In fact, KFC earns more profit outside the U.S.A. than in the U.S.A. In 2001, the Yum! International system opened a record 1,041 traditional restaurants. With over 6,000 KFCs and over 4,000 Pizza Huts, Yum! International has the second and third largest QSR brands outside the U.S.A.

Yum! Brands' Key Growth Drivers — Year-2001 Update

1. International Expansion
Our business outside the U.S.A. now accounts for approximately a third of our total profits, and plenty of opportunities exist to continue tapping international markets. In 2001, we opened over 1000 new units around the world, and we intend to continue this performance. With the universal recognition of our two global brands, KFC and Pizza Hut, we are well positioned to take advantage of every international growth opportunity.

2. Portfolio of Five Leading U.S. Brands
All three of our brands lead their QSR categories in recognition and sales. Together, KFC, Pizza Hut, Taco Bell, Long John Silvers and A&W give us distinctive advantages that compensate for the temporary ups and downs our single-brand competitors experience.

3. Multibranding Expansion
When it comes to putting together two or three concepts under one roof (multibranding), Yum! Brands has a distinct advantage. Already operating five brands, the Company makes them readily accessible to one another. We are the worldwide leader in multibranding with over 1,500 restaurants that account for over $1.5 billion in annual system sales. We are committed to expanding our mulitbranding business as these restaurants have proven to be growth drivers for our U.S. business. Additionally, our customers love the variety they offer, especially to families with divergent tastes. These restaurants generate more cash flow per unit than single-brand facilities.

4. Global Franchise Fees
Our franchise partners are expanding around the world. We now generate over $800 million each year in franchise fees, an increase of nearly 40% in just three years. At year's end 2001, our franchise and license partners owned and operated over 22,000 restaurants worldwide, representing nearly three-fourths of the total system. Our franchise and license partners also opened over 950 new traditional restaurants and purchased more than 250 restaurants from Yum! Brands, which demonstrates these owners' confidence in and commitment to our brands.

5. Strong Cash Generation and Returns
In 2001, prior to investment, Yum! Brands generated over $1.1 billion of cash. Our objective for this strong cash flow is to turn it into high returns. Currently, our return on invested capital is 18%, which we believe is among the highest in the QSR industry. Compared to 1997, that’s 10 percentage points better, and we are confident our three brands will continue to drive high returns.

Worldwide System Units

Outside the United States, sales in the QSR segment of the food service industry are estimated to be $62 billion. Industry conditions vary by country, with many local restaurants and quick-serve options present, but on average, competition is less than in the United States as internationally branded competition is generally limited to McDonald’s and, in certain markets, Domino's, Wendy's and Burger King.

Reflecting the broad geographic consumer appeal of Yum! Brands' concepts, over 43% of Yum! Restaurants International’s restaurants are located in Asia Pacific, followed by the Americas (Canada, the Caribbean, Latin America and South America) with 21%, Europe/South Africa with 25%, and Greater China with 11%.

Worldwide System Units (Year end 1996–2001)  
  2001 2000 1999 1998 1997 1996 6-yr growth 
 KFC 5,399 5,364 5,231 5,105 5,092 5,078 1%   
 Pizza Hut 7,719 7,927 8,084 8,412 8,640 8,696 (2)%  
 Taco Bell 6,444 6,746 6,879 6,852 6,741 6,642 (1)%  
 Total U.S. 19,562 20,037 20,194 20,369 20,473 20,416 (1)%  
 KFC 6,416 5,974 5,595 5,318 5,145 4,783 6%  
 Pizza Hut 4,972 4,157 3,961 3,873 3,894 3,694 3%  
 Taco Bell 239 249 232 203 200 203 3%  
 Total Int’l. 10,927 10,380 9,788 9,394 9,239 8,680 5%  
 Global Total 30,489 30,417 29,982 29,763 29,712 29,096 1%