-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, G6bc12exGkWIzbyBlpwGplq+YMH+LiOD7bRqesNlS0rEs22nD5CM475IeOqm3KGm AukZoLFnIquQMH/HDk4EcQ== 0001041061-97-000023.txt : 19971210 0001041061-97-000023.hdr.sgml : 19971210 ACCESSION NUMBER: 0001041061-97-000023 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971209 ITEM INFORMATION: FILED AS OF DATE: 19971209 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRICON GLOBAL RESTAURANTS INC CENTRAL INDEX KEY: 0001041061 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 133951308 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-13163 FILM NUMBER: 97735029 BUSINESS ADDRESS: STREET 1: 1441 GARDINER LANE CITY: LOUISVILLE STATE: KY ZIP: 40213 BUSINESS PHONE: 5024568080 MAIL ADDRESS: STREET 1: 1900 COLONEL SANDERS LANE CITY: LOUISVILLE STATE: KY ZIP: 40213 FORMER COMPANY: FORMER CONFORMED NAME: GREAT AMERICAN RESTAURANT CO DATE OF NAME CHANGE: 19970618 8-K 1 CURRENT REPORT 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) December 9, 1997 TRICON GLOBAL RESTAURANTS, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) North Carolina 1-13163 13-3951308 - ----------------------------- ---------------- ---------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1441 Gardiner Lane, Louisville, Kentucky 40213 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (502) 456-8300 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) N/A - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 5. OTHER EVENTS On December 9, 1997, Tricon Global Restaurants, Inc. issued a press release with respect to certain strategic actions to be taken during the fourth quarter to dramatically refocus its business. 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 December 9, 1997 from Tricon Global Restaurants, Inc. 2 SIGNATURES 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: December 9, 1997 /s/ Robert L. Carleton -------------------------------------------------- Senior Vice President and Controller and Chief Accounting Officer 3 Exhibit 99 Tricon Global Restaurants Announces Fourth Quarter Strategic Actions (Louisville, KY, December 9, 1997) - Tricon Global Restaurants (NYSE:YUM) today announced that it will take one-time charges of approximately $530 million ($425 million after-tax or $2.79 per share) in its fourth quarter to dramatically refocus its business. The actions will have a one-time negative impact on earnings for the year. The after-tax charge is largely non-cash and is expected to have a favorable effect on future cash flows. Andrall E. Pearson, Chairman and CEO, commented: "Our commitment to shareholders was to take decisive action to drive cash flow and execute a more focused operating strategy. This charge reflects that commitment. The actions underlying the charge primarily address Tricon's two biggest strategic issues: (1) domestically, we are strengthening Pizza Hut's asset base by closing or refranchising marginal stores and, (2) internationally, we are focusing to build scale in high growth company markets. The charge will cover closure of underperforming stores over the next year, writing-down to market value the carrying value of some of the stores that we intend to refranchise, revaluation of some other investment assets and reducing the overhead costs related to these operations." Mr. Pearson continued: "Tricon will end 1997 strongly with low double-digit growth in Operating Profit, before facility action net gains and these charges, to about $660 million. We regard this as a good start for Tricon in its initial transition as a freestanding company particularly given the adverse currency impacts of recent months. Our 1998 earnings estimates remain essentially unchanged reflecting a major improvement over 1997. Moreover, we expect to continue to grow Operating Profit at least at a low double-digit rate. The actions we are taking in the quarter will provide significant benefits in 1998. We now have the much-needed flexibility to make investments in systems technology, including Year 2000, and to cover the potential adverse effects of currency changes in Asia where we will continue our long-term market development. Additionally, by being decisive now, we are accelerating certain asset disposal decisions into 1997 that will give us the potential for a higher level of facility action net gains next year. Our asset base continues to give us unsurpassed financial flexibility in the restaurant industry." "We are confident these actions will improve our return on assets and cash flow and result in annual earnings growth in the mid-teens on average over the next five years." 1 Details of the Charge U.S. Int'l ----------- --------- ----------- ---------- $MM $MM Units pre-tax Units pre-tax Stores to be refranchised 362 75 305 74 Stores to be closed 598 139 143 73 Other asset write-downs n/a 12 n/a 128 Other actions n/a 9 n/a 20 ---- --- ---- ---- Total 960 235 448 295 === === === === This announcement contains forward-looking statements that estimate future benefits from strategic actions and full-year earnings per share performance. These "forward-looking" statements reflect management's expectations and are based upon currently available data; however, actual results are subject to future events and uncertainties, which could materially impact actual performance. Factors that can cause actual results to differ are economic and political conditions in the countries and territories where Tricon operates, the impact of such conditions on consumer spending and currency exchange rates, pricing pressures resulting from competitive discounting, new product and concept development by Tricon and other food industry competitors, and fluctuations in commodity prices. Contact: Lynn Tyson, Vice President Investor Relations, 502/456-8617 2 -----END PRIVACY-ENHANCED MESSAGE-----