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)
July 30, 2001
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 | |
| of 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 July 26, 2001, TRICON Global Restaurants, Inc. issued a press release with respect to earnings for the second quarter ended June 16, 2001. 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 July 26, 2001 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.
(Registrant)
Date: July 30, 2001
/s/ Brent A. Woodford
Vice President and Controller
(Principal Accounting Officer)
3
TRICON GLOBAL RESTAURANTS, INC. REPORTS ONGOING OPERATING EARNINGS PER SHARE OF $0.73 FOR THE SECOND QUARTER
LOUISVILLE, KY (July 26, 2001) - Tricon Global Restaurants, Inc. (NYSE: YUM) reported operating results for the second quarter, ended
June 16, 2001, including:
Financial Highlights
($MM Except Per Diluted Share Amounts)
% Change vs. % Change vs.
Q2 Prior Year Q2 YTD Prior Year
System Sales 5,114 2 10,093 2
Revenues(a) 1,605 (3) 3,111 (4)
Ongoing Operating Profit 193 (15) 373 (12)
Ongoing Operating Earnings 111 (2) 199 (5)
Ongoing Operating EPS(b) 0.73 (3) 1.32 (6)
Net Facility Actions EPS 0.02 NM 0.03 NM
Unusual items EPS 0.01 NM - NM
Reported EPS 0.76 8 1.35 (10)
4
David C. Novak, Chairman and CEO said, "We're pleased to report second-quarter operating earnings were at the high end of the range we provided last quarter. Importantly, we are growing our global system sales in a tough macro environment. Better-than-expected control of our structural costs such as G&A, interest and tax were able to offset somewhat lower than expected U.S. blended same-store sales and higher than expected commodity costs. These structural-cost reductions will continue through the second half of the year.
"To achieve our full-year earnings target, we will continue to grow our system sales, and we will reap the benefits of acting with a sense of urgency to counteract the cost pressures of the industry, international strategic investments and foreign currency translation impact. As a result, we will drive earnings growth in the third and fourth quarters and expect to achieve our target of $3.18 per share for the full year. Tricon's second half plan is based on:
"Overall, you can expect our international business to produce solid growth in sales, profits and returns well into the future. In the U.S. we are slugging it out in a highly competitive market and improving our customer proposition to enable consistent same-store sales growth going into 2002 and beyond. Running great restaurants, multibranding and more effectively differentiating our leading brands with innovative products, quality, service and marketing will continue to be our focus. And finally, by reducing our cost base to new best levels, we are establishing a much more productive and higher return base for our global business.
"During the first half of 2001, we made progress in all five key areas that we believe are long-term growth drivers and make us a unique restaurant company:
INTERNATIONAL EXPANSION continued as we set a record for first-half traditional restaurant openings (378), which makes us confident that we will set a new record for full-year openings, exceeding last year's level of 929. On the strength of new openings and system same-store sales growth, second-quarter and first-half system sales growth was 8% and 9% in local currency terms respectively.
U.S. BLENDED SAME-STORE SALES increased 1% for the quarter led by 3% growth at Pizza Hut and 2% at KFC, offsetting a 2% decline at Taco Bell. Both Pizza Hut and KFC experienced solid transaction growth. The decline of 2% at Taco Bell is clearly unacceptable and remains our Number 1 challenge. We believe improved operational execution and a number of key initiatives to be implemented throughout the second half are crucial to begin the turnaround. This should begin to build consistent, positive same-store sales growth during the fourth quarter and into 2002.
5
MULTIBRANDED RESTAURANT GROWTH is on track, with over 50 multibranded restaurants added this quarter and over 100, year to date. This concept provides a significant competitive advantage in the U.S., utilizing three category leaders, and expands avenues of U.S. system-sales growth through new-unit openings, asset upgrades, and conversions of existing single-brand restaurants. And long term, we see significant opportunity in international.
GLOBAL FRANCHISE FEES increased to $189 million, up 10% prior to U.S. dollar conversion in the second quarter. Additionally, we continued to make progress toward resolving Taco Bell franchise financial issues.
CASH GENERATION - over $250 million in the quarter and over $400 million year to date - is on track to reach over $1 billion for the year. We expect to maintain our return on invested capital of 18% in 2001."
During the second quarter, a record 179 new traditional restaurants were opened outside the U.S., an increase of 13% over last year's second-quarter opening rate. Significantly, Tricon opened 378 new traditional restaurants year to date, which is over 40% higher versus last year's first half. For the full year, the company now expects that new traditional restaurant openings outside the U.S. will break the record of 929 recorded last year.
For the quarter, international system sales increased 8% before a 9% negative effect of translating foreign currency into U.S. dollars. For the second quarter, ongoing operating profit in U.S. dollars declined by 15% versus last year. The unfavorable impact of foreign currency conversion, higher operating costs, including utilities and promotion costs, and lower profits in recent acquisition markets offset the benefit from strong system-sales growth. Additionally, start-up costs related to accelerated openings of new restaurants and spending on strategic growth initiatives impacted profits. New restaurants typically experience higher expenses during the first 120 days of operation before reaching normal operating profitability.
Year to date, international system sales increased 9% before an 8% negative effect of translating foreign currency into U.S. dollars. Ongoing operating profit in U.S. dollars declined by 7% versus last year due to the factors cited, which affected second-quarter performance.
For the full year, we expect the international business to deliver continued strong system-sales growth prior to conversion to U.S. dollars. On a comparable 52-week basis, international ongoing operating profit is expected to grow at a double-digit rate prior to significant impacts from foreign currency conversion. This includes investment spending to drive long-term growth initiatives and improve the company's position in certain key markets. The investment spending on long-term growth initiatives will continue going forward.
For the second quarter, U.S. blended same-store sales increased by 1%. U.S. system
6
sales, however, increased by more than 3% primarily as a result of system same-store sales growth and the benefit from opening new higher-volume, new-image restaurants and closing older restaurants with lower volumes and non-prime locations. KFC was the key driver to U.S. system-sales growth, combining strong franchise and company same-store sales growth with 2% growth in units versus a year ago and continued transformation and remodeling of system assets. Second-quarter system-sales growth at KFC was the best since the fourth quarter of 1998.
As expected, U.S. ongoing operating profit for the quarter declined by 9% primarily as a result of the dilutive operating-profit impact of refranchising, additional expenses related to the financial restructuring of certain Taco Bell franchise businesses and substantially higher cheese costs.
Year to date, U.S. blended same-store sales increased slightly due to 3% growth at Pizza Hut and 2% growth at KFC, which offset a 4% decline at Taco Bell. U.S. system sales growth of over 2% can be attributed to the same factors previously cited, which drove second-quarter performance. KFC led the year-to-date performance in system sales. U.S. ongoing operating profit declined 10% as a result of the same factors previously noted for second-quarter ongoing operating performance.
For the full year, we expect growth of about 1% in U.S. blended same-store sales. The company expects U.S. system sales to increase 2% to 3% on a comparable 52-week basis. U.S. ongoing operating profit is expected to decline slightly versus last year, primarily as a result of the dilutive operating-profit impact of refranchising.
The company now operates 1,300 multibranded restaurants globally, making Tricon the world's largest multibranded restaurant company. The system includes nearly 700 KFC/Taco Bell restaurants, nearly 450 Taco Bell/Pizza Hut Express restaurants, and over 100 KFC/Pizza Hut Express restaurants. For the full year, Tricon expects continued rapid expansion of the multibrand concept. The company expects to have approximately 1,600 multibrand restaurants in operation by year's end.
Franchise fees for Tricon's three global brands totaled $189 million for the quarter, an increase of 10% versus last year, prior to foreign currency conversion impact of negative 3 percentage points. Growth was driven by franchise new-unit expansion, the purchase of company operated restaurants by franchisees and global local currency same-store sales growth. Tricon expects continued franchise new-restaurant development, helping to drive global franchise fees of $815 million for the full year 2001.
Tricon generated over $250 million in cash in the second quarter and over $400 million year to date. This strong cash flow was invested in a number of growth areas, including
7
international and multibranding expansion. Additionally, the company continued to invest in the transformation of existing U.S. assets primarily through remodel and replacement programs at KFC and Pizza Hut. Capital spending, including acquisitions of franchise restaurants, totaled $162 million in the second quarter and $305 million year to date.
At the end of the second quarter, the company had reduced debt by about $20 million from year's end and increased cash and short-term investments by over $60 million, which we intend to use for debt reduction in the near future. Additionally, the company purchased $11 million of its own shares during the second quarter, bringing year-to-date purchases to $21 million.
In 2001, the company expects cash generated will exceed $1 billion, allowing for approximately $725 million of capital to be invested in the business, $200 million to reduce debt and $100 million to repurchase shares.
Return on invested capital is expected to remain at 18% for the full year, significantly above Tricon's cost of capital and one of the best levels in the restaurant category. The company expects continued solid returns from international and multibranded investments combined with strong franchise business expansion, which requires virtually no capital investment by Tricon. At the end of the second quarter, over 21,000 franchise and joint-venture traditional restaurants were in operation worldwide versus 20,177 a year ago, an increase of 4%.
FINANCIAL PROGRESS
Restaurant margin of 14.5% was 1.5 percentage points below last year's second-quarter results. U.S. restaurant margin of 15.6% was down 0.8 percentage points from last year as substantially higher cheese costs and continued wage inflation were partially offset by favorable product mix and pricing. International restaurant margin of 12.1% declined 3.1 percentage points primarily due to lower volume in several markets, higher operating costs - including promotion and utility costs - the impact of acquiring lower-margin restaurants, and new-unit start-up costs as had been anticipated.
For the full year, the company expects restaurant margin to be down slightly versus last year's 15.1%. High levels of inflation in energy and cheese costs and the impact of acquiring lower-margin international restaurants will be nearly offset by positive local currency global same-store sales growth and the impact of refranchising. For 2001, it is expected that U.S. restaurant margin will be down slightly and international margin will be down more than 0.5 percentage points essentially due to second-quarter performance.
During 2001, Tricon will continue to invest in a number of customer-focused programs intended to enhance quality and customer experience and increase overall consumer ratings for each brand. These include quality upgrades at KFC with improved flavor of Extra Crispy® and Original Recipe® chicken, the new steak product and Grilled Stuft Burrito® at Taco Bell and systemwide facility upgrades. Overall, these initiatives will have a modest negative effect on margin. However, Tricon believes these are important investments to further strengthen its three leading brands and drive sustainable same
8
-store sales going forward.
For 2001, Tricon will continue to aggressively pursue structural cost-saving opportunities such as overhead costs, interest expense and operating tax rate. As such, the company is targeting further reductions in each of these categories. It is expected that full-year overhead costs will reach the lowest level since Tricon became a public company, down more than 2% versus last year in dollar terms. With market reductions in interest rates and further debt reduction, interest expense should decline by 8% from last year's level. Tricon continues to pursue tax strategies to improve the ongoing operating tax rate involving both U.S. and international operations. This is expected to result in an ongoing operating tax rate in the range of 35% to 36%, which is the best level achieved since Tricon became a public company.
In the second quarter, Tricon experienced approximately three cents per share of unfavorable impact from the translation of foreign currencies to U.S. dollars. Year to date, the impact is six cents. The Australian dollar, British pound sterling, Canadian dollar, Japanese yen, Korean won, and Mexican peso are all significant currencies in the results of the company's international business. All these currencies, except the Mexican peso, were weaker versus the U.S. dollar, compared to the second quarter of 2000. Tricon expects a two-cent negative impact in both the third and fourth quarters, based on current foreign exchange rates.
THIRD-QUARTER OUTLOOK
The company's initial guidance for third-quarter ongoing operating EPS is in the range of $0.78 to $0.82, or between 1% and 6% higher than last year. Factors contributing to our expectations are
TACO BELL FRANCHISE BUSINESS
As previously disclosed, certain of the company's Taco Bell franchise operators are experiencing varying degrees of financial difficulty with respect to their franchise operations.
Taco Bell is in various stages of discussion with a number of Taco Bell franchisees and their lenders, representing several hundred Taco Bell franchised restaurants. The company believes that many of these franchisees will require various types of business
9
and/or financial restructuring, which could include the purchase of some franchised restaurants by Taco Bell. Taco Bell has been working diligently during the first half to resolve these issues. To date, the company has completed restructuring for approximately 500 of these restaurants, including the purchase of 125 Taco Bell franchise restaurants. A significant number remaining to be restructured are targeted for completion in the near term. It is anticipated that the vast majority will be completed in the third quarter.
During the second quarter of 2001, Tricon recorded an additional $5 million of expense related to allowances for doubtful franchise and license-fee receivables and $12 million year to date. These costs were reported as general and administrative expenses. Tricon intends to continually evaluate the appropriateness of estimated allowances and assess the need for any additional charges related to ongoing fees and other related financial contingencies.
During the second half of 2001, the company estimates than an additional $2 million to $5 million for allowances related to doubtful receivables is possible. This contingency, along with the financial effects that result from any foreseeable purchases of franchised restaurants by Taco Bell, have been included in the company's ongoing operating EPS and cash-flow estimates for the full year.
ONGOING RESULTS*
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,
*These results should be read in conjunction with the attached financial summary.
10
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 Friday, July 27, 2001.
For U.S. callers the number is 877/679-9051. For international callers the number is 952/556-2804. The call will be available for playback by dialing 800/615-3210 in the U.S.A. and 703/326-3020 internationally, beginning Friday, July 27, at 11:00 a.m. EDT through Monday, July 30, at 12:00 midnight EDT. The access code for the playback is 5166157.
The call playback can be accessed via the Internet by going to Tricon's web site: www.triconglobal.com and selecting "2nd Quarter Earnings Webcast." (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
Larry Gathof, 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
Larry Gathof, Director Investor Relations at 502/874-8918
11
Tricon Global Restaurants, Inc.
Condensed Consolidated Statements of Income
(tabular amounts in millions, except per share amounts)
(unaudited)
12 Weeks Ended
----------------------------- % Change (a)
6/16/01 6/10/00 B/(W)
------------ ------------ ------------
Revenues
Company sales $ 1,416 $ 1,480 (4)
Franchise and license fees 189 176 7
------------ ------------
1,605 1,656 (3)
------------ ------------
Costs and expenses, net
Company restaurants
Food and paper 442 449 2
Payroll and employee benefits 390 407 4
Occupancy and other operating
expenses 378 387 3
------------ ------------
1,210 1,243 3
General and administrative
expenses 207 195 (7)
Other (income) expense(b) (5) (8) (40)
Facility actions net (gain)(c) (18) (66) (72)
Unusual items(d) (4) 72 NM
------------ ------------
Total costs and expenses, net 1,390 1,436 3
------------ ------------
Operating profit 215 220 (3)
Interest expense, net 37 41 12
------------ ------------
Income before income taxes 178 179 -
Income tax provision(e) 62 73 16
------------ ------------
Net income $ 116 $ 106 10
============ ============
Basic EPS Data
EPS $ 0.79 $ 0.72 10
============ ============
Average shares outstanding 147 147 -
============ ============
Diluted EPS Data
EPS $ 0.76 $ 0.71 8
============ ============
Average shares outstanding 152 149 (2)
============ ============
24 Weeks Ended
----------------------------- % Change (a)
6/16/01 6/10/00 B/(W)
------------ ------------ ------------
Revenues
Company sales $ 2,742 $ 2,905 (6)
Franchise and license fees 369 348 6
------------ ------------
3,111 3,253 (4)
------------ ------------
Costs and expenses, net
Company restaurants
Food and paper 852 890 4
Payroll and employee benefits 761 817 7
Occupancy and other operating
expenses 737 760 3
------------ ------------
2,350 2,467 5
General and administrative
expenses 397 376 (6)
Other (income) expense(b) (9) (15) (41)
Facility actions net (gain)(c) (16) (113) (86)
Unusual items(d) (2) 76 NM
------------ ------------
Total costs and expenses, net 2,720 2,791 3
------------ ------------
Operating profit 391 462 (15)
Interest expense, net 76 82 8
------------ ------------
Income before income taxes 315 380 (17)
Income tax provision(e) 111 154 28
------------ ------------
Net income $ 204 $ 226 (9)
============ ============
Basic EPS Data
EPS $ 1.39 $ 1.53 (9)
============ ============
Average shares outstanding 147 148 1
============ ============
Diluted EPS Data
EPS $ 1.35 $ 1.50 (10)
============ ============
Average shares outstanding 151 150 (1)
============ ============
[See accompanying notes.]
12
Supplemental Schedule of Reportable Operating Segments'
Revenues and Operating Profit
(in millions)
(unaudited)
12 Weeks Ended
--------------------------- % Change (a)
6/16/01 6/10/00 B/(W)
----------- ----------- --------------
System Sales
United States $ 3,381 $ 3,271 3
International 1,733 1,743 (1)
----------- -----------
Worldwide $ 5,114 $ 5,014 2
=========== ===========
Revenues
United States
Company sales $ 997 $ 1,054 (5)
Franchise and license fees 127 119 7
----------- -----------
Total 1,124 1,173 (4)
----------- -----------
International
Company sales 419 426 (2)
Franchise and license fees 62 57 9
----------- -----------
Total 481 483 -
----------- -----------
Worldwide $ 1,605 $ 1,656 (3)
=========== ===========
Restaurant Margin
United States $ 156 $ 172 (10)
International 50 65 (22) ----------- -----------
----------- -----------
Worldwide $ 206 $ 237 (13)
=========== ===========
Restaurant Margin as a Percent of Company Sales
Worldwide
Company sales 100.0% 100.0%
Food and paper 31.2 30.3 (0.9) ppts.
Payroll and employee benefits 27.6 27.5 (0.1) ppts.
Occupancy and other operating
expenses 26.7 26.2 (0.5) ppts.
----------- -----------
Worldwide 14.5% 16.0% (1.5) ppts.
=========== ===========
United States 15.6% 16.4% (0.8) ppts.
International 12.1% 15.2% (3.1) ppts.
Operating Profit
United States ongoing operating
profit $ 172 $ 190 (9)
International ongoing operating
profit 58 68 (15)
Unallocated and corporate
expenses (36) (33) (15)
Foreign exchange gain (loss) (1) 1 NM
----------- -----------
Ongoing operating profit 193 226 (15)
Facility actions net gain(c) 18 66 (72)
Unusual items(d) 4 (72) NM
----------- -----------
Reported operating profit $ 215 $ 220 (3)
=========== ===========
24 Weeks Ended
--------------------------- % Change (a)
6/16/01 6/10/00 B/(W)
----------- ----------- ---------------
System Sales
United States $ 6,610 $ 6,476 2
International 3,483 3,464 1
----------- -----------
Worldwide $ 10,093 $ 9,940 2
=========== ===========
Revenues
United States $ 1,949 $ 2,101 (7)
Company sales 245 234 5
Franchise and license fees ----------- -----------
2,194 2,335 (6)
Total ----------- -----------
International 793 804 (1)
Company sales 124 114 9
Franchise and license fees ----------- -----------
917 918 -
Total ----------- -----------
$ 3,111 $ 3,253 (4)
Worldwide =========== ===========
Restaurant Margin $ 287 $ 316 (9)
United States 105 122 (13)
International ----------- -----------
$ 392 $ 438 (10)
Worldwide =========== ===========
Restaurant Margin as a Percent of Company sales
Worldwide
Company sales 100.0% 100.0%
Food and paper 31.1 30.6 (0.5) ppts.
Payroll and employee benefits 27.7 28.1 0.4 ppts.
Occupancy and other operating
expenses 26.9 26.2 (0.7) ppts.
----------- -------------
Worldwide 14.3% 15.1% (0.8) ppts.
=========== =============
United States 14.7% 15.1% (0.4) ppts.
International 13.3% 15.1% (1.8) ppts.
Operating Profit
United States ongoing operating
profit $ 312 $ 346 (10)
International ongoing operating
profit 132 143 (7)
Unallocated and corporate
expenses (69) (65) (9)
Foreign exchange gain (loss) (2) 1 NM
----------- -----------
Ongoing operating profit 373 425 (12)
Facility actions net gain(c) 16 113 (86)
Unusual items(d) 2 (76) NM
----------- -----------
Reported operating profit $ 391 $ 462 (15)
=========== ===========
13
Notes To The Condensed Consolidated Statements of Income and Supplemental Schedule of Reportable
Operating Segments' Revenues and Operating Profit
(tabular dollar amounts in millions, except per share amounts)
12 Weeks Ended 24 Weeks Ended
----------------------- -----------------------
6/16/01 6/10/00 6/16/01 6/10/00
---------- ---------- ---------- ----------
Equity income from investments in
unconsolidated affiliates $ (6) $ (7) $ (11) $ (14)
Foreign exchange net (gain) loss 1 (1) 2 (1)
---------- ---------- ---------- ----------
Total other (income) expense $ (5) $ (8) $ (9) $ (15)
========== ========== ========== ==========
12 Weeks Ended 24 Weeks Ended
----------------------- -----------------------
6/16/01 6/10/00 6/16/01 6/10/00
---------- ---------- ---------- ----------
Refranchising net gains $ 31 $ 74 $ 35 $ 121
Store closure costs (4) (4) (6) (3)
Impairment charges for stores that will
continue to be used in the business (8) (4) (9) (4)
Impairment charges for stores to be closed (1) - (4) (1)
---------- ---------- ---------- ----------
Facility actions net gain $ 18 $ 66 $ 16 $ 113
========== ========== ========== ==========
After-tax net gain $ 3 $ 39 $ 4 $ 65
========== ========== ========== ==========
14
Tricon Global Restaurants, Inc.
Restaurant Units Activity Summary
For the 24 Weeks Ended June 16, 2001
(unaudited)
Unconsolidated
Company Affiliates Franchisees Licensees Total
---------- -------------- ------------ ----------- ----------
KFC U.S.
Balance at December 30, 2000 1,339 - 3,978 47 5,364
Openings 15 - 35 4 54
Acquisitions 6 - (6) - -
Refranchising (47) - 47 - -
Closures (17) - (19) (4) (40)
---------- -------------- ---------- ----------- ----------
Balance at June 16, 2001 1,296 - 4,035 47 5,378
========== ============== ========== =========== ==========
% of Total 24.1% - 75.0% 0.9% 100.0%
Pizza Hut U.S.
Balance at December 30, 2000 1,801 - 4,888 1,238 7,927
Openings 33 - 61 46 140
Acquisitions 13 - (13) - -
Refranchising (43) - 43 - -
Closures (49) - (112) (86) (247)
---------- -------------- ---------- ----------- ----------
Balance at June 16, 2001 1,755 - 4,867 1,198 7,820
========== ============== ========== =========== ==========
% of Total 22.5% - 62.2% 15.3% 100.0%
Taco Bell U.S.
Balance at December 30, 2000 1,162 - 3,996 1,588 6,746
Openings 10 - 24 33 67
Acquisitions 67 - (64) (3) -
Refranchising - - - - -
Closures (8) - (42) (113) (163)
---------- ------------- ---------- ----------- ----------
Balance at June 16, 2001 1,231 - 3,914 1,505 6,650
========== ============== ========== =========== ==========
% of Total 18.5% - 58.9% 22.6% 100.0%
Total U.S.
Balance at December 30, 2000 4,302 - 12,862 2,873 20,037
Openings 58 - 120 83 261
Acquisitions 86 - (83) (3) -
Refranchising (90) - 90 - -
Closures (74) - (173) (203) (450)
---------- -------------- ---------- ----------- ----------
Balance at June 16, 2001 4,282 - 12,816 2,750 19,848
========== ============== ========== =========== ==========
% of Total 21.6% - 64.6% 13.8% 100.0%
International
Balance at December 30, 2000 1,821 1,844 6,425 290 10,380
Openings 123 45 210 4 382
Acquisitions 193 (65) (126) (2) -
Refranchising (66) (8) 74 - -
Closures (27) (26) (203) (41) (297)
Other(a) (67) 93 (26) - -
---------- -------------- ---------- ----------- ----------
Balance at June 16, 2001 1,977 1,883 6,354 251 10,465
========== ============= ========== =========== ==========
% of Total 18.9% 18.0% 60.7% 2.4% 100.0%
Worldwide
Balance at December 30, 2000 6,123 1,844 19,287 3,163 30,417
Openings 181 45 330 87 643
Acquisitions 279 (65) (209) (5) -
Refranchising (156) (8) 164 - -
Closures (101) (26) (376) (244) (747)
Other(a) (67) 93 (26) - -
---------- -------------- ----------- ----------- ----------
Balance at June 16, 2001 6,259 1,883 19,170 3,001 30,313
========== ============== =========== =========== ==========
% of Total 20.7% 6.2% 63.2% 9.9% 100.0%
15