A world of choice Yum! is the undeniable world leader in Multibranding innovation with over 3,000 combination restaurants in the U.S. accounting for an estimated $330 million in restaurant profits and fees (excluding G&A expenses). That s because we have a competitive advantage that no other restaurant company in the world can offer: a portfolio of four category-leading brands. Since 1992 when we first offered our customers two great brands in one restaurant, our goal has remained the same: To be the best in the world at providing customers branded restaurant choice and convenience. Today, not only can we get higher unit volumes from our multibranded restaurants, they allow us to open new restaurants in trade areas that were too expensive or didn t have enough population density to allow us to go to market with one brand. The power of branded variety has never been more evident. With all that choice and convenience under one roof it s easy to see why Multibranding is an undeniable consumer win! 28. Yum! Brands, Inc.
3000+ multibrand units in the U.S. Multibrand units make up more than 17% of our total restaurant base in the U.S. 500+ NEW multibrand units in 2005
Global Facts A world of results 2005 demonstrated the power of Yum! s global portfolio. In 2005, we had sales issues in China and high U.S. commodity cost increases during the first half of the year. Despite this, EPS grew 13%. We were able to achieve these results because of strong Taco Bell and performance in the U.S. and another strong year at Yum! Restaurants International. We also benefited from stock repurchases that were supported by the $1 billion of operating cash flow that we generate. We have now achieved double-digit EPS growth for four straight years and are all working hard to build upon this consistent record of performance to show the world that We re Not Your Ordinary Restaurant Company. Rick Carucci, CHIEF FINANCIAL OFFICER, YUM! BRANDS, INC. WORLDWIDE SALES 5-Year (in billions) 2005 2004 2003 2002 2001 Growth (a) Company sales $ 1.4 $ 1.4 $ 1.4 $ 1.4 $ 1.4 Franchisee sales (b) 3.8 3.6 3.5 3.4 3.3 5% Company sales $ 1.6 $ 1.6 $ 1.6 $ 1.5 $ 1.5 (2)% Franchisee sales (b) 3.7 3.6 3.5 3.6 3.5 3% TACO BELL Company sales $ 1.8 $ 1.7 $ 1.6 $ 1.6 $ 1.4 6% Franchisee sales (b) 4.4 4.0 3.8 3.6 3.5 3% LJS (C) Company sales $ 0.5 $ 0.5 $ 0.5 $ 0.3 NM Franchisee sales (b) 0.3 0.3 0.3 0.2 NM A&W (C) Company sales $ $ $ $ NM Franchisee sales (b) 0.2 0.2 0.2 0.2 NM TOTAL U.S. Company sales $ 5.3 $ 5.2 $ 5.1 $ 4.8 $ 4.3 1% Franchisee sales (b) 12.4 11.7 11.3 11.0 10.3 4% Company sales $ 1.1 $ 1.0 $ 0.9 $ 0.9 $ 0.7 6% Franchisee sales (b) 5.2 4.7 4.1 3.6 3.5 9% Company sales $ 0.6 $ 0.7 $ 0.5 $ 0.5 $ 0.5 3% Franchisee sales (b) 3.0 2.6 2.4 2.2 2.0 9% TACO BELL Company sales $ $ $ $ $ NM Franchisee sales (b) 0.2 0.2 0.1 0.2 0.1 12% LJS (C) Company sales NM Franchisee sales (b) NM A&W (C) Company sales NM Franchisee sales (b) 0.1 0.1 0.1 NM TOTAL Company sales $ 1.7 $ 1.7 $ 1.4 $ 1.4 $ 1.2 5% Franchisee sales (b) 8.5 7.6 6.7 6.0 5.6 9% Company sales $ 1.0 $ 0.9 $ 0.8 $ 0.6 $ 0.5 21% Franchisee sales (b) 0.7 0.6 0.5 0.3 0.3 13% Company sales $ 0.2 $ 0.2 $ 0.1 $ 0.1 $ 0.1 NM Franchisee sales (b) NM TOTAL Company sales $ 1.2 $ 1.1 $ 0.9 $ 0.7 $ 0.6 24% Franchisee sales (b) 0.7 0.6 0.5 0.3 0.3 13% TOTAL WORLDWIDE Company sales $ 8.2 $ 8.0 $ 7.4 $ 6.9 $ 6.1 4% Franchisee sales (b) 21.6 19.9 18.5 17.3 16.2 6% (a) Compounded annual growth rate; totals for U.S., International and Worldwide exclude the impact of Long John Silver s and A&W. (b) Franchisee sales represents the combined estimated sales of unconsolidated affiliate and franchise and license restaurants. Franchisee sales, which are not included in our Company sales, generate franchise and license fees (typically at rates between 4% and 6%) that are included in our revenues. (c) Beginning May 7, 2002, includes Long John Silver s and A&W, which were added when we acquired Yorkshire Global Restaurants, Inc.
WORLDWIDE SYSTEM UNITS % B/(W) 2005 2004 Change Company 7,587 7,743 (2%) Unconsolidated affiliates 1,648 1,662 (1%) Franchisees 22,666 21,858 4% Licensees 2,376 2,345 1% Total 34,277 33,608 2% 5-Year 2005 2004 2003 2002 2001 (a)(b) Growth 5,443 5,525 5,524 5,472 5,399 Pizza Hut 7,566 7,500 7,523 7,599 7,719 (1%) Taco Bell 5,845 5,900 5,989 6,165 6,444 (3%) Long John Silver s 1,169 1,200 1,204 1,221 NM A&W 449 485 576 665 NM Total U.S. (c) 20,472 20,610 20,822 21,126 19,562 (1%) 6,307 6,084 5,944 5,698 5,465 4% Pizza Hut 4,701 4,528 4,357 4,249 4,123 3% Taco Bell 243 237 247 261 239 Long John Silver s 34 34 31 28 NM A&W 229 210 183 182 NM Total International 11,514 11,093 10,762 10,418 9,827 4% 1,981 1,657 1,410 1,192 951 20% Pizza Hut 305 246 204 182 149 10% Taco Bell 2 1 1 NM A&W 6 NM Total China (d) 2,291 1,905 1,615 1,380 1,100 18% Total (c)(d) 34,277 33,608 33,199 32,924 30,489 1% (a) Compounded annual growth rate; total U.S., International, China and Worldwide exclude the impact of Long John Silver s and A&W. (b) Compounded annual growth rate excludes the impact of transferring 30 units from Taco Bell U.S. to Taco Bell International in 2002. (c) Includes 6 and 4 Yan Can units in 2003 and 2002, respectively. (d) Includes 3 units and 1 unit in 2005 and 2004, respectively, for an Asian food concept in China. BREAKDOWN OF WORLDWIDE SYSTEM UNITS Unconsolidated Year-end 2005 Company Affiliate Franchised Licensed Total 1,155 4,209 79 5,443 Pizza Hut 1,655 4,599 1,312 7,566 Taco Bell 1,252 3,803 790 5,845 Long John Silver s 611 558 1,169 A&W 13 436 449 Total U.S. 4,686 13,605 2,181 20,472 744 351 5,151 61 6,307 Pizza Hut 631 745 3,234 91 4,701 Taco Bell 201 42 243 Long John Silver s 33 1 34 A&W 229 229 Total International 1,375 1,096 8,848 195 11,514 1,241 552 188 1,981 Pizza Hut 280 25 305 Taco Bell 2 2 Total China (a) 1,526 552 213 2,291 Total (a) 7,587 1,648 22,666 2,376 34,277 (a) Includes 3 units in 2005 for an Asian food concept in China. WORLDWIDE UNITS 2005 (in thousands) Yum! BRANDS 34 MCDONALD S 32 SUBWAY 25 BURGER KING 11 WENDY S 10 DOMINO S PIZZA 8 DAIRY QUEEN 6 POPEYES 2 Yum! Brands, Inc. 31.
Yum! at a glance U.S. SALES BY DAYPART BY DISTRIBUTION CHANNEL Dinner 55% Lunch 37% Snacks/Breakfast 8% Dine Out 80% Dine In 20% Dinner 63% Lunch 28% Snacks/Breakfast 9% Dine Out 75% Dine In 25% Dinner 40% Lunch 47% Snacks/Breakfast 13% Dine Out 75% Dine In 25% Dinner 51% Lunch 46% Snacks/Breakfast 3% Dine Out 59% Dine In 41% Dinner 35% Lunch 45% Snacks/Breakfast 20% Dine Out 51% Dine In 49% 32. Yum! Brands, Inc. Source: The NPD Group, Inc.; NPD Foodworld; CREST