UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
Date of Report (Date of earliest event reported)
April 29, 2002
Commission file number 1-13163
TRICON GLOBAL RESTAURANTS, INC.
(Exact name of registrant as specified in its charter)
| North Carolina | 13-3951308 | |
| (State or other jurisdiction of | (IRS Employer | |
| incorporation or organization) | Identification No.) |
1441 Gardiner Lane, Louisville, Kentucky
40213
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: (502) 874-8300
Former name or former address, if changed since last report: N/A
Item 5. OTHER EVENTS
On April 29, 2002 TRICON Global Restaurants, Inc. issued a press release with respect to their earnings for the first quarter ended March 23, 2002. A copy of such press release is attached hereto as Exhibit 99 and incorporated herein by reference.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99 Press release dated April 29, 2002 from TRICON Global Restaurants, Inc.
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TRICON
GLOBAL RESTAURANTS, INC. |
| Date: May 1, 2002 | /s/ Brent A. Woodford |
| Vice President and Controller |
| (Principal Accounting Officer) |
3
TRICON GLOBAL RESTAURANTS, INC. REPORTS FIRST-QUARTER
ONGOING OPERATING EARNINGS OF $0.80 PER SHARE
UP 37% FROM $0.59 A YEAR AGO
• RAISES FULL-YEAR 2002 ONGOING OPERATING EPS
GUIDANCE TO $3.63 - $3.70 FROM $3.56 - $3.63
• REPORTS APRIL (PERIOD 4) SALES
LOUISVILLE, Ky., April 29, 2002 - Tricon Global Restaurants, Inc. (NYSE: YUM) reported results for the first quarter ended March 23, 2002.
Key components of first-quarter performance:
Financial Highlights
($ Million Except Per-Diluted-Share Amounts)
% Change Vs.
Q1 Prior Year
----------- -------------
System Sales 5,243 5
Revenues 1,614 7
Ongoing Operating Earnings 124 41
As % of Revenue 7.7% +1.8 ppts
-----------------------------------------------------------
Ongoing Operating EPS 0.80 37
-----------------------------------------------------------
Net Facility Actions EPS (0.05) NM
Unusual Items EPS 0.05 NM
Reported EPS 0.80 37
David C. Novak, Chairman and CEO said, "First quarter results reflect our ongoing progress in growing revenues and earnings in both our international and U.S. businesses. Continued global expansion with outstanding returns led to double-digit increases in international ongoing operating profit, both in U.S. dollars and prior to foreign currency conversion. Each of our U.S. brands posted same-store sales growth, which led to substantially increased restaurant-level margin and 25% ongoing operating profit growth for the U.S. business.
During the quarter, we executed two initiatives that will accelerate two of our long-term revenue-driving strategies: leading the way in multibrand innovation and improving day-to-day restaurant operations. First, we signed a definitive agreement to acquire Long
4
John Silver's and A&W All-American Food Restaurants to drive multibranding leadership. We have successfully tested combining KFC and Taco Bell with A&W and Long John Silver's and have seen increases in our average unit sales volumes of 20% to 30% and EBITDA of 30% to 50%. The acquisition has the potential to ultimately enable multibranding in 12,000 of our nearly 17,000 traditional U.S. restaurants and be expanded internationally. We are confident multibranding is a key enabler for accelerating the renewal of our existing asset base and adding new units with excellent returns for our shareholders. I am pleased to report the acquisition transition is proceeding smoothly, and we expect the transaction to close within the next few weeks.
Second, we launched our worldwide Customer Mania initiative that we expect will result in improved restaurant operations. We are aligning with our global franchise partners to train our 725,000 team members around the world on delivering a consistent customer experience with a "Yes" attitude. Through Customer Mania training, our team members learn how to better execute our operational basics and are empowered to solve customer problems on the spot.
For the second quarter, we expect to post another set of solid results with ongoing operating earnings per share of $0.83-$0.87. Given our strong start to the year and our optimism for the balance of the year, we are raising our full-year 2002 ongoing operating EPS guidance to $3.63-$3.70 from $3.56-$3.63. We also expect shareholders to approve our company name change to Yum! Brands, Inc. at our annual shareholders meeting on May 16. Our new name will better reflect our expanding portfolio of brands and our unique recognition culture. Everything is in place for 2002 to be an excellent year for Yum! Brands."
Following is an update on Tricon's business segments and key growth drivers, which include global expansion, portfolio of leading U.S. brands, multibranding, franchise fees and cash generation and returns:
INTERNATIONAL BUSINESS PERFORMANCE
-------------------------------------------------------------------------------
Q1
------------------------------------------------
Inc / (Dec)
-----------------------------
2002 2001 Reported Excl F/x(a)
------- ------- --------- ----------------
Revenues $480 $436 +10% +13%
($ millions)
Restaurant Margin 15.4% 14.7% 0.7ppts 0.7ppts
Ongoing Operating Profit $82 $74 +11% +16%
($ millions)
-------------------------------------------------------------------------------
In the first quarter for Tricon's international business, new-restaurant development was the primary driver of revenue and ongoing operating profit growth. The adoption of SFAS 142, which included the elimination of goodwill amortization, contributed 4 percentage points of ongoing operating profit growth for the quarter. Restaurant margin increased 0.7 percentage points primarily due to the adoption of SFAS 142.
5
For the full year 2002, the company expects international revenues to grow at a low-double-digit rate and international ongoing operating profit to grow at least 15%. Ongoing operating profit growth includes the impact of foreign currency translation and the favorable impact of the adoption of SFAS 142. Based on current foreign currency rates, the company expects an approximate $9 to $12 million adverse impact of foreign currency conversion on ongoing operating profit for the full year 2002.
UNITED STATES PORTFOLIO PERFORMANCE
----------------------------------------------------------------------
Q1
-----------------------------------
2002 2001 Inc / (Dec)
--------- -------- ------------
U.S. Portfolio Same-Store Sales +5% Even NM
Revenues $1,134 $1,070 +6%
($ millions)
Restaurant Margin 15.7% 13.8% +1.9ppts
Ongoing Operating Profit $175 $140 +25%
($ millions)
----------------------------------------------------------------------
In the first quarter 2002 for Tricon's U.S. portfolio of brands, blended same-store sales at company restaurants increased 5% and consisted of an 8% increase at Taco Bell, a 5% increase at KFC, and a 2% increase at Pizza Hut. Increases in system-wide same-store sales for all brands drove revenue growth of 6% for the quarter. Restaurant margin improved 1.9 percentage points, primarily due to positive same-store sales growth and the adoption of SFAS 142. Ongoing operating profit increased 25% primarily as a result of solid revenue growth. The adoption of SFAS 142 contributed 4 percentage points of ongoing operating profit growth for the quarter.
For the balance of the year, the company expects U.S. portfolio blended same-store sales to grow at least 2%.
WORLDWIDE NEW-RESTAURANT DEVELOPMENT
-----------------------------------------------
Q1
-------
Restaurant Openings(a)
Worldwide 236
International 171
United States 65
Restaurant Net Growth Vs. Q1 2001(a)
Worldwide +2%
International +7%
United States (1)%
-----------------------------------------------
6
Worldwide net restaurant growth of 2%, versus first quarter 2001, was primarily driven by the company's four high-growth international markets - China, Mexico, Korea and the U.K. - as well as solid growth by international franchisees. Versus first quarter 2001, net restaurant growth was 35% in China, 15% in Mexico and Korea, and 7% in the U.K.
One point not reflected, which primarily affects U.S. net restaurant growth statistics, is the impact of multibranding on our U.S. restaurant system. Multibrand conversions, while increasing the sales and points of distribution for the added brand, result in no additional unit counts. Though no additional unit counts are realized, these conversions drive significant increases in same-store sales and result in upgraded, new-image restaurants for the U.S. business. Similarly, a newly opened multibrand unit, while increasing sales and points of distribution for two brands, results in just one additional unit count.
For 2002, we expect 5% to 6% net growth in international restaurants and no net change in the U.S. This forecast excludes licensed locations.
MULTIBRANDING
---------------------------------------------------
Q1
------
System-wide Multibrand Net Additions 37
Total System-wide Multibrand Restaurants 1,566
---------------------------------------------------
In the quarter, U.S. net additions totaled 35 and international 2. In the U.S., company and franchise net additions were 14 and 21 respectively. About 50% of the U.S. multibrand net additions represented conversions of existing single-brand restaurants, and 50% represented new-restaurant openings. Additionally, at the beginning of the second quarter, we opened our first multibranded restaurant with Back Yard Burgers, a conversion of a single-brand Taco Bell to a Taco Bell/Back Yard Burgers multibrand in Shepherdsville, Kentucky. Testing with Back Yard Burgers will continue with additional multibranded openings scheduled for the second quarter.
For 2002, Tricon continues to expect to add at least 325 company and franchise multibranded restaurants through new-restaurant openings and conversions of existing restaurants. About 60% of these additions are expected to be conversions of single-brand restaurants to mulitbrands and 40% are expected to be new multibrand restaurants.
7
FRANCHISE FEES
-----------------------------------------------------------
Q1
---------
Franchise Net Restaurant Growth Vs. Q1 2001(a) +2%
Franchise Fees (b) $188
($ millions)
$ Growth Vs. 2001 +5%
-----------------------------------------------------------
Positive worldwide franchise same-store sales growth and net new-restaurant development drove franchise-fee growth in the first quarter. Foreign currency translation negatively impacted year-over-year growth by one percentage point.
CASH GENERATED AND RETURN ON INVESTED CAPITAL
-----------------------------------------------------------
($ millions) Q1
---------
Cash Generated $281
Capital Spending and Acquisitions $132
Debt Reduction $109
Share Repurchase $8
Return on Invested Capital NM
-----------------------------------------------------------
Cash generated for the first quarter continued to more than fund capital spending for worldwide restaurant growth and restaurant asset upgrades. The first quarter included $46 million of after-tax employee stock-option proceeds and $17 million of after-tax refranchising proceeds.
For 2002, the company expects to generate nearly $1.2 billion in cash, including $200 million in proceeds from stock-option exercises and $65 million from after-tax refranchising proceeds prior to capital spending of an estimated $750 million.
SECOND-QUARTER 2002 OUTLOOK
The company expects to earn $0.83 to $0.87 in ongoing operating EPS. This includes the impact of the acquisition of Yorkshire Global Restaurants (YGR) during the quarter. We are expecting this to impact our financial results for one four-week period, Period 6, in the second quarter.
Projected factors contributing to the company's EPS expectations are . . .
8
YEAR 2002 OUTLOOK
Tricon now expects ongoing operating EPS of between $3.63 and $3.70 for the full year. Our previous guidance was $3.56 to $3.63 of ongoing operating EPS.
APRIL (PERIOD 4) SALES
Estimated U.S. portfolio blended same-store sales at company restaurants increased 2% during the four-week period ended April 20, 2002 (Period 4). For the comparable four-week period, U.S. same-store sales increased 9% at Taco Bell and 1% at KFC and decreased 3% at Pizza Hut.
For Period 4, International system sales increased 17% prior to foreign currency conversion or 12% after conversion to U.S. dollars. Year-to-date international system sales increased 11% prior to foreign currency conversion or 6% after conversion to U.S. dollars.
Same-store sales results for Period 5, 2002 (primarily the latter half of April and first half of May for the U.S. businesses), will be released Thursday, May 23, 2002.
9
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, 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 Tricon operates; 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 effectiveness of our operating initiatives and advertising and promotional efforts; new-product and concept development by Tricon 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; our actuarially determined casualty loss estimates; changes in legislation and governmental regulation; and changes in accounting policies and practices. Further information about factors that could affect Tricon's financial and other results are included in the company's Forms 10-Q and 10-K, filed with the Securities and Exchange Commission.
Tricon Global Restaurants, Inc. will hold a conference call to review the company's operating and financial performance at 9:00 a.m. EDT Tuesday, April 30, 2002.
Callers in the U.S. dial 877/815-2029. International callers dial 706/645-9271.
The call will be available for playback beginning Tuesday, April 30, at noon EDT through Tuesday, May 14, at midnight EDT. To access the playback, dial 800/642-1687 in the U.S.A. and 706/645-9291 internationally. The playback access code is 3678425.
The call and playback can be accessed via the Internet by visiting Tricon's Web site: www.triconglobal.com and selecting "1st Quarter Earnings Web Cast." (Real Player is required, which can be downloaded at no charge. The process could take at least 10 minutes.)
Analysts are invited to contact
Tim Jerzyk, Vice President Investor Relations at 502/874-2543
Scott Colosi, Director Investor Relations at 502/874-8918
Members of the media are invited to contact
Amy Sherwood, Vice President Public Relations at 502/874-8200
Individual shareholders are invited to contact
Scott Colosi, Director Investor Relations at 502/874-8918
10
Tricon Global Restaurants, Inc.
Condensed Consolidated Statements of Income
(amounts in millions, except per share amounts)
(unaudited)
12 Weeks Ended
-------------------------- % Change
3/23/02 3/24/01 B/(W) (a)
----------- ------------ -----------
Revenues
Company sales $ 1,426 $ 1,326 7
Franchise and license fees 188 180 5
----------- ------------
Revenues 1,614 1,506 7
----------- ------------
Costs and expenses, net
Company restaurants
Food and paper 439 410 (7)
Payroll and employee benefits 395 371 (7)
Occupancy and other operating expenses 369 359 (3)
----------- ------------
1,203 1,140 (6)
General and administrative expenses 182 173 (5)
Franchise and license expenses(b) 10 17 40
Other (income) expense(c) (5) (4) 22
Facility actions net loss (gain)(d) 9 2 NM
Unusual items (income) expense(e) (11) 2 NM
----------- ------------
Total costs and expenses, net 1,388 1,330 (4)
----------- ------------
Operating profit 226 176 28
Interest expense, net 34 39 15
----------- ------------
Income before income taxes 192 137 40
Income tax provision 68 49 (39)
----------- ------------
Net income $ 124 $ 88 41
=========== ============
Basic EPS Data
EPS $ 0.85 $ 0.60 41
=========== ============
Average shares outstanding 147 147 -
=========== ============
Diluted EPS Data
EPS $ 0.80 $ 0.59 37
=========== ============
Average shares outstanding 155 150 (3)
=========== ============
See accompanying notes.
11
Tricon Global Restaurants, Inc.
WORLDWIDE Ongoing Operating Results
(amounts in millions)
(unaudited)
12 Weeks Ended
------------------------- % Change
3/23/02 3/24/01 B/(W)(a)
----------- ----------- -------------
System sales $ 5,243 $ 4,979 5
=========== ===========
Company sales $ 1,426 $ 1,326 7
Franchise and license fees 188 180 5
----------- -----------
Revenues 1,614 1,506 7
----------- -----------
Company restaurants
Food and paper 439 410 (7)
Payroll and employee benefits 395 371 (7)
Occupancy and other operating expenses 369 359 (3)
----------- -----------
1,203 1,140 (6)
General and administrative expenses 182 173 (5)
Franchise and license expenses(b) 10 17 40
Other (income) expense(c) (5) (4) 22
----------- -----------
Ongoing operating profit(f) 224 180 24
Interest expense, net 34 39 15
Income tax provision 66 53 (25)
----------- -----------
ONGOING OPERATING EARNINGS $ 124 $ 88 41
=========== ===========
ONGOING OPERATING EPS(f) $ 0.80 $ 0.59 37
=========== ===========
Average shares outstanding - diluted 155 150 (3)
=========== ===========
Ongoing operating tax rate 34.7% 37.3% 2.6 ppts.
=========== ===========
Company sales 100.0% 100.0%
Food and paper 30.8 30.9 0.1 ppts.
Payroll and employee benefits 27.7 27.9 0.2 ppts.
Occupancy and other operating expenses 25.9 27.1 1.2 ppts.
----------- -----------
Restaurant margin(f) 15.6% 14.1% 1.5 ppts.
=========== ===========
Reconciliation of Ongoing Operating Profit to Reported Operating Profit(f)
-------------------------------------------------------------------------------------
U.S. ongoing operating profit $ 175 $ 140 25
International ongoing operating profit 82 74 11
Unallocated and corporate expenses (33) (33) (1)
Foreign exchange (loss) - (1) NM
----------- -----------
Ongoing operating profit $ 224 $ 180 24
Facility actions net (loss) gain(d) (9) (2) NM
Unusual items income (expense) (e) 11 (2) NM
----------- -----------
Reported operating profit $ 226 $ 176 28
=========== ===========
12
Tricon Global Restaurants, Inc.
UNITED STATES Ongoing Operating Results
(amounts in millions)
(unaudited)
12 Weeks Ended
------------------------- % Change
3/23/02 3/24/01 B/(W)(a)
----------- ----------- ---------------
System sales $ 3,427 $ 3,229 6
=========== ===========
Company sales $ 1,010 $ 952 6
Franchise and license fees 124 118 5
----------- -----------
Revenues 1,134 1,070 6
----------- -----------
Company restaurants
Food and paper 286 273 (5)
Payroll and employee benefits 314 296 (6)
Occupancy and other expenses 251 252 1
----------- -----------
851 821 (4)
General and administrative expenses 99 93 (6)
Franchise and license expenses(b) 9 16 45
----------- -----------
Ongoing operating profit(f) $ 175 $ 140 25
=========== ===========
Company sales 100.0% 100.0%
Food and paper 28.4 28.6 0.2 ppts.
Payroll and employee benefits 31.1 31.0 (0.1) ppts.
Occupancy and other operating expenses 24.8 26.6 1.8 ppts.
----------- -----------
Restaurant margin(f) 15.7% 13.8% 1.9 ppts.
=========== ===========
13
Tricon Global Restaurants, Inc.
INTERNATIONAL Ongoing Operating Results
(amounts in millions)
(unaudited)
12 Weeks Ended
------------------------- % Change
3/23/02 3/24/01 B/(W)(a)
----------- ----------- ----------------
System sales $ 1,816 $ 1,750 4
=========== ===========
Company sales $ 416 $ 374 11
Franchise and license fees 64 62 3
----------- -----------
Revenues 480 436 10
----------- -----------
Company restaurants
Food and paper 153 137 (11)
Payroll and employee benefits 81 75 (8)
Occupancy and other operating expenses 118 107 (11)
----------- -----------
352 319 (10)
General and administrative expenses 50 47 (8)
Franchise and license expenses(b) 1 1 (8)
Equity income from investments in
unconsolidated affiliates (5) (5) 17
----------- -----------
Ongoing operating profit(f) $ 82 $ 74 11
=========== ===========
Company sales 100.0% 100.0%
Food and paper 36.7 36.7 -
Payroll and employee benefits 19.4 20.0 0.6 ppts.
Occupancy and other operating expenses 28.5 28.6 0.1 ppts.
----------- -----------
Restaurant margin(f) 15.4% 14.7% 0.7 ppts.
=========== ===========
14
Notes to the Condensed Consolidated Statements of Income and
Ongoing Operating Results
(tabular dollar amounts in millions)
12 Weeks Ended
-----------------------
3/23/02 3/24/01
---------- ----------
Equity income from investments in unconsolidated affiliates $ (5) $ (5)
Foreign exchange net loss - 1
---------- ----------
Total other (income) expense $ (5) $ (4)
========== ==========
12 Weeks Ended
-----------------------
3/23/02 3/24/01
---------- ----------
Refranchising net loss (gain) $ (3) $ (4)
Store closure costs 8 2
Store impairment charges 4 4
---------- ----------
Facility actions net loss (gain) $ 9 $ 2
========== ==========
In the first quarter 2001, unusual items expense of $2 million primarily included costs of defending certain wage and hour litigation.
U.S. International Unallocated Worldwide
------------- ---------------- -------------- ----------------
Restaurant profit $ 4 $ 2 $ - $ 6
============= ================ ============== ================
Restaurant margin (%) 0.5 ppts. 0.5 ppts. - 0.5 ppts.
Ongoing operating profit $ 4 $ 3 $ - $ 7
============= ================ ============== ================
Additionally, if SFAS 142 had been effective for the first quarter of 2001, reported net income and ongoing operating EPS would have increased by approximately $5 million and $0.03, respectively.
15
Tricon Global Restaurants, Inc.
Cash Generation/Use(a)
(amounts in millions)
(unaudited)
12 Weeks Ended
-------------------------
3/23/02 3/24/01
----------- -----------
Ongoing operating earnings $ 124 $ 88
Depreciation and amortization 78 73
Refranchising proceeds, after tax 17 13
AmeriServe 16 63
Option proceeds 46 10
Debt addition, net - 20
----------- -----------
Total cash generated 281 267
----------- -----------
Capital spending 131 94
Acquisitions 1 49
Debt reduction, net 109 -
Share repurchase 8 10
Other 6 89
----------- -----------
Total cash uses 255 242
----------- -----------
Net increase in cash $ 26 $ 25
=========== ===========
16
Tricon Global Restaurants, Inc.
Restaurant Units Activity Summary
For the 12 Weeks Ended March 23, 2002
(unaudited)
United States
-------------------------------------------------------------------------------------------
Total
Excluding Total
Company Franchisees Licensees Licensees Units
-------- ------------ ----------- ----------- -----------
Pizza Hut U.S.
Balance at December 29, 2001 1,745 4,824 6,569 1,150 7,719
New Builds 2 18 20 21 41
Acquisitions - - - - -
Refranchising & Licensing - - - - -
Closures & Divestitures (6) (30) (36) (26) (62)
Other - - - - -
-------- ------------ ----------- ----------- -----------
Balance at March 23, 2002 1,741 4,812 6,553 1,145 7,698
======== ============ =========== =========== ===========
% of Total 23% 62% 85% 15% 100%
Taco Bell U.S.
Balance at December 29, 2001 1,265 3,828 5,093 1,351 6,444
New Builds 2 8 10 6 16
Acquisitions 1 (1) - - -
Refranchising & Licensing - - - - -
Closures & Divestitures (6) (32) (38) (45) (83)
Other - - - (30) (30)
-------- ------------ ----------- ----------- -----------
Balance at March 23, 2002 1,262 3,803 5,065 1,282 6,347
======== ============ =========== =========== ===========
% of Total 20% 60% 80% 20% 100%
KFC U.S.
Balance at December 29, 2001 1,274 4,081 5,355 44 5,399
New Builds 20 15 35 2 37
Acquisitions - - - - -
Refranchising & Licensing (29) 29 - - -
Closures & Divestitures (7) (16) (23) - (23)
Other - - - - -
-------- ------------ ----------- ----------- -----------
Balance at March 23, 2002 1,258 4,109 5,367 46 5,413
======== ============ =========== =========== ===========
% of Total 23% 76% 99% 1% 100%
Total U.S.
Balance at December 29, 2001 4,284 12,733 17,017 2,545 19,562
New Builds 24 41 65 29 94
Acquisitions 1 (1) - - -
Refranchising & Licensing (29) 29 - - -
Closures & Divestitures (19) (78) (97) (71) (168)
Other(a) - - - (30) (30)
-------- ------------ ----------- ----------- -----------
Balance at March 23, 2002 4,261 12,724 16,985 2,473 19,458
======== ============ =========== =========== ===========
% of Total 22% 65% 87% 13% 100%
17
Tricon Global Restaurants, Inc.
Restaurant Units Activity Summary
For the 12 Weeks Ended March 23, 2002
(unaudited)
International
-----------------------------------------------------------------------------------------------------------
Total
Unconsolidated Excluding Total
Company Affiliates Franchisees Licensees Licensees Units
-------- -------------- ------------ ----------- ----------- -----------
Pizza Hut International
Balance at December 29, 2001 763 860 2,480 4,103 169 4,272
New Builds 18 12 32 62 - 62
Acquisitions - 38 (38) - - -
Refranchising & Licensing (2) (1) 3 - - -
Closures & Divestitures (11) (1) (43) (55) (2) (57)
Other - - - - - -
-------- -------------- ------------ ----------- ----------- -----------
Balance at March 23, 2002 768 908 2,434 4,110 167 4,277
======== ============== ============ =========== =========== ===========
% of Total 18% 21% 57% 96% 4% 100%
Taco Bell International
Balance at December 29, 2001 39 31 140 210 29 239
New Builds - - 2 2 - 2
Acquisitions - - - - - -
Refranchising & Licensing - - - - - -
Closures & Divestitures (1) (1) - (2) - (2)
Other - - - - 30 30
-------- -------------- ------------ ----------- ----------- -----------
Balance at March 23, 2002 38 30 142 210 59 269
======== ============== ============ =========== =========== ===========
% of Total 14% 11% 53% 78% 22% 100%
KFC International
Balance at December 29, 2001 1,349 1,109 3,910 6,368 48 6,416
New Builds 51 12 44 107 - 107
Acquisitions - - - - - -
Refranchising & Licensing (5) (3) 8 - - -
Closures & Divestitures (6) (2) (28) (36) (1) (37)
Other - - - - - -
-------- -------------- ------------ ----------- ----------- -----------
Balance at March 23, 2002 1,389 1,116 3,934 6,439 47 6,486
======== ============== ============ =========== =========== ===========
% of Total 21% 17% 61% 99% 1% 100%
Total International
Balance at December 29, 2001 2,151 2,000 6,530 10,681 246 10,927
New Builds 69 24 78 171 - 171
Acquisitions - 38 (38) - - -
Refranchising & Licensing (7) (4) 11 - - -
Closures & Divestitures (18) (4) (71) (93) (3) (96)
Other(a) - - - - 30 30
-------- -------------- ------------ ----------- ----------- -----------
Balance at March 23, 2002 2,195 2,054 6,510 10,759 273 11,032
======== ============== ============ =========== =========== ===========
% of Total 20% 19% 59% 98% 2% 100%
Worldwide
-----------------------------------------------------------------------------------------------------------
Total Tricon
Balance at December 29, 2001 6,435 2,000 19,263 27,698 2,791 30,489
New Builds 93 24 119 236 29 265
Acquisitions 1 38 (39) - - -
Refranchising & Licensing (36) (4) 40 - - -
Closures & Divestitures (37) (4) (149) (190) (74) (264)
Other - - - - - -
-------- -------------- ------------ ----------- ---------- -----------
Balance at March 23, 2002 6,456 2,054 19,234 27,744 2,746 30,490
======== ============== ============ =========== ========== ===========
% of Total 21% 7% 63% 91% 9% 100%
18
Tricon Global Restaurants, Inc.
Multibrand Restaurants
For the 12 Weeks Ended March 23, 2002
(unaudited)
U.S. International Worldwide
---------------------------- ---------------------------- ---------------------------
Net Additions Net Additions Net Additions
-------------- -------------- --------------
Total Total Total
Multibrand Multibrand Multibrand
12 Weeks Restaurants 12 Weeks Restaurants 12 Weeks Restaurants
Ended 3/23/02 3/23/02 Ended 3/23/02 3/23/02 Ended 3/23/02 3/23/02
-------------- ------------ -------------- ------------ -------------- -----------
KFC
Taco Bell(a)(b) (1) 613 1 52 - 665
Pizza Hut(a) 3 123 - 63 3 186
A&W 10 81 - - 10 81
Taco Bell/Pizza Hut 3 'n 1 3 44 - 4 3 48
Long John Silver's 1 6 - - 1 6
Chock Full O'Nuts (1) 2 - - (1) 2
WingWorks(c) - 1 - - - 1
-------------- ------------ -------------- ------------ -------------- -----------
15 870 1 119 16 989
Taco Bell
Pizza Hut(a) 19 560 1 14 20 574
Long John Silver's 1 3 - - 1 3
-------------- ------------ -------------- ------------ -------------- -----------
20 563 1 14 21 577
Pizza Hut
KFC - - - - - -
Taco Bell - - - - - -
-------------- ------------ -------------- ------------ -------------- -----------
- - - - - -
Total 35 1,433 2 133 37 1,566
============== ============ ============== ============ ============== ===========
19