A Message from David Gibbs

The last two years have presented one of the most challenging environments that the world, along with Yum! Brands, have navigated: year two of a global pandemic, associated supply chain disruptions and persistent labor shortages. Despite a global pandemic, we ended 2021 stronger than ever, marking the strongest growth year in our history and setting an industry record for unit development. We opened nearly 4,200 gross units during the year — an average of one new restaurant every two hours.

Our success is a testament to our Recipe for Growth & Good, showing that a focus on environmental, social and governance (ESG) issues is not incidental to growth, but rather, an enabler of it. Our shareholders and other stakeholders understand this. As a result, we are actively embedding ESG considerations into our business strategy and adopting responsible business practices that resonate with our values.

We made significant progress in 2021 toward our three Recipe for Good priority pillars of People, Food and Planet.

One of Yum!’s defining characteristics is the culture that we create in our restaurants and professional teams and the way we take care of people in our communities. During the year, we invested in Yum!’s social purpose, unlocking opportunities for our people and communities through initiatives like the launch of the Yum! Center for Global Franchise Excellence at the University of Louisville, which will create pathways to entrepreneurship for underrepresented people of color and women interested in franchising.

2021 was a milestone year for our environmental commitments: We announced science-based targets (SBTs) to reduce greenhouse gas (GHG) emissions nearly 50% by 2030. We have initiated several pilot projects to help reduce emissions in our restaurants and supply chain and have introduced a harmonized packaging policy that creates a common set of standards across all four of our brands.

In terms of our food, we remain focused on safety, listening and responding to customers’ evolving preferences, and improving the nutritional value of our menu items. We continue to introduce relevant and distinctive plant-based offerings at our brands, including in restaurants in the United States, Canada and Europe.

As I reflect on the past two years, I’m incredibly proud of the way our teams have collaborated to serve our customers and community while fueling growth for our franchisees and shareholders. Our performance in 2021 demonstrates that our iconic brands can thrive and win in any environment, and as we make our way through 2022 — our 25th anniversary year — I’m confident and energized about what lies ahead.

Thanks for your support.