YUM BRANDS INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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8-K - 8-K - YUM BRANDS INC	a8k71614.htm
EX-99.1 - EXHIBIT 99.1 - YUM BRANDS INC	a8kex99171614.htm

YUM! Brands, Inc.

Recast Annual Segment Operating Results

(amounts in millions)

(unaudited)



Year Ended 12/28/13	China			KFC		Pizza Hut			Taco Bell			India			Corporate and Unallocated			Consolidated
Company sales	$	6,800		$	2,192	$	609		$	1,474		$	109		$	—		$	11,184
Franchise and license fees and income	105			844		538			395			18			—			1,900
Total revenues	6,905			3,036		1,147			1,869			127			—			13,084

Company restaurant expenses
Food and paper	2,258			766		173			424			48			—			3,669
Payroll and employee benefits	1,360			521		183			419			16			—			2,499
Occupancy and other operating expenses	2,132			628		182			344			47			—			3,333
Company restaurant expenses	5,750			1,915		538			1,187			111			—			9,501

General and administrative expenses	357			391		224			206			27			207			1,412
Franchise and license expenses	13			76		47			20			2			—			158
Closures and impairment (income) expenses	30			3		—			1			2			295			331
Refranchising (gain) loss	—			—		—			—			—			(100		)	(100		)
Other (income) expense	(22		)	2		(1		)	(1		)	—			6			(16		)
Total costs and expenses, net	6,128			2,387		808			1,413			142			408			11,286

Operating Profit (loss)	$	777		$	649	$	339		$	456		$	(15	)	$	(408	)	$	1,798



Year Ended 12/29/12	China			KFC			Pizza Hut		Taco Bell		India			Corporate and Unallocated			Consolidated
Company sales	$	6,797		$	2,212		$	993	$	1,747	$	84		$	—		$	11,833
Franchise and license fees and income	101			802			517		362		18			—			1,800
Total revenues	6,898			3,014			1,510		2,109		102			—			13,633

Company restaurant expenses
Food and paper	2,312			766			259		502		35			—			3,874
Payroll and employee benefits	1,259			541			305		504		11			—			2,620
Occupancy and other operating expenses	1,993			607			319		422		33			(16		)	3,358
Company restaurant expenses	5,564			1,914			883		1,428		79			(16		)	9,852

General and administrative expenses	334			400			258		223		24			271			1,510
Franchise and license expenses	9			68			37		19		—			—			133
Closures and impairment (income) expenses	9			12			12		4		—			—			37
Refranchising (gain) loss	—			—			—		—		—			(78		)	(78		)
Other (income) expense	(33		)	(6		)	—		—		—			(76		)	(115		)
Total costs and expenses, net	5,883			2,388			1,190		1,674		103			101			11,339

Operating Profit (loss)	$	1,015		$	626		$	320	$	435	$	(1	)	$	(101	)	$	2,294

YUM! Brands, Inc.

Recast Annual Segment Operating Results

(amounts in millions)

(unaudited)



Year Ended 12/31/11	China			KFC			Pizza Hut			Taco Bell		India		Corporate and Unallocated			Consolidated
Company sales	$	5,487		$	2,420		$	1,131		$	1,790	$	65	$	—		$	10,893
Franchise and license fees and income	79			760			501			329		17		47			1,733
Total revenues	5,566			3,180			1,632			2,119		82		47			12,626

Company restaurant expenses
Food and paper	1,947			820			308			532		26		—			3,633
Payroll and employee benefits	890			632			353			535		8		—			2,418
Occupancy and other operating expenses	1,568			678			381			450		26		(14		)	3,089
Company restaurant expenses	4,405			2,130			1,042			1,517		60		(14		)	9,140

General and administrative expenses	275			388			246			196		22		245			1,372
Franchise and license expenses	4			69			42			17		—		13			145
Closures and impairment (income) expenses	12			21			17			5		—		80			135
Refranchising (gain) loss	—			—			—			—		—		72			72
Other (income) expense	(38		)	(6		)	(2		)	—		—		(7		)	(53		)
Total costs and expenses, net	4,658			2,602			1,345			1,735		82		389			10,811

Operating Profit (loss)	$	908		$	578		$	287		$	384	$	—	$	(342	)	$	1,815



Year Ended 12/25/10	China			KFC			Pizza Hut			Taco Bell		India			Corporate and Unallocated			Consolidated
Company sales	$	4,081		$	2,501		$	1,341		$	1,823	$	37		$	—		$	9,783
Franchise and license fees and income	54			657			464			324		12			49			1,560
Total revenues	4,135			3,158			1,805			2,147		49			49			11,343

Company restaurant expenses
Food and paper	1,362			836			364			514		15			—			3,091
Payroll and employee benefits	587			653			394			534		4			—			2,172
Occupancy and other operating expenses	1,231			726			452			441		16			(9		)	2,857
Company restaurant expenses	3,180			2,215			1,210			1,489		35			(9		)	8,120

General and administrative expenses	216			375			257			194		17			218			1,277
Franchise and license expenses	1			47			30			16		—			16			110
Closures and impairment (income) expenses	16			10			13			7		—			1			47
Refranchising (gain) loss	—			—			—			—		—			63			63
Other (income) expense	(33		)	(1		)	(2		)	—		—			(7		)	(43		)
Total costs and expenses, net	3,380			2,646			1,508			1,706		52			282			9,574

Operating Profit (loss)	$	755		$	512		$	297		$	441	$	(3	)	$	(233	)	$	1,769

The above tables represent recasted annual segment operating results due to the reorganization of our YUM Restaurants International ("YRI") and U.S. businesses into three global divisions: KFC, Pizza Hut and Taco Bell. Corporate and Unallocated amounts include the results of the A&W and Long John Silver's businesses, which were previously reported as part of our U.S. and YRI segments prior to the sale of those brands in 2011. The China and India divisions were not impacted by this reorganization.

YUM! Brands, Inc.

Recast Quarterly Segment Operating Results

(amounts in millions)

(unaudited)



Quarter Ended 3/23/13	China			KFC		Pizza Hut			Taco Bell		India			Corporate and Unallocated			Consolidated
Company sales	$	1,133		$	458	$	138		$	353	$	17		$	—		$	2,099
Franchise and license fees and income	18			201		129			85		3			—			436
Total revenues	1,151			659		267			438		20			—			2,535

Company restaurant expenses
Food and paper	375			159		38			101		7			—			680
Payroll and employee benefits	231			110		41			105		3			—			490
Occupancy and other operating expenses	339			129		38			83		7			—			596
Company restaurant expenses	945			398		117			289		17			—			1,766

General and administrative expenses	55			81		42			45		4			46			273
Franchise and license expenses	2			15		9			4		—			—			30
Closures and impairment (income) expenses	2			—		1			—		1			—			4
Refranchising (gain) loss	—			—		—			—		—			(17		)	(17		)
Other (income) expense	(7		)	—		(1		)	—		—			—			(8		)
Total costs and expenses, net	997			494		168			338		22			29			2,048

Operating Profit (loss)	$	154		$	165	$	99		$	100	$	(2	)	$	(29	)	$	487



Quarter Ended 6/15/13	China		KFC		Pizza Hut			Taco Bell		India			Corporate and Unallocated			Consolidated
Company sales	$	1,429	$	514	$	144		$	358	$	29		$	—		$	2,474
Franchise and license fees and income	20		189		123			94		4			—			430
Total revenues	1,449		703		267			452		33			—			2,904

Company restaurant expenses
Food and paper	469		180		41			102		13			—			805
Payroll and employee benefits	319		123		44			100		4			—			590
Occupancy and other operating expenses	489		147		40			82		11			—			769
Company restaurant expenses	1,277		450		125			284		28			—			2,164

General and administrative expenses	90		92		54			48		8			41			333
Franchise and license expenses	3		16		9			5		1			—			34
Closures and impairment (income) expenses	6		—		(1		)	1		—			—			6
Refranchising (gain) loss	—		—		—			—		—			(32		)	(32		)
Other (income) expense	5		—		—			3		—			1			9
Total costs and expenses, net	1,381		558		187			341		37			10			2,514

Operating Profit (loss)	$	68	$	145	$	80		$	111	$	(4	)	$	(10	)	$	390

YUM! Brands, Inc.

Recast Quarterly Segment Operating Results

(amounts in millions)

(unaudited)



Quarter Ended 9/7/13	China			KFC		Pizza Hut			Taco Bell			India			Corporate and Unallocated			Consolidated
Company sales	$	2,001		$	514	$	140		$	340		$	26		$	—		$	3,021
Franchise and license fees and income	32			190		124			95			4			—			445
Total revenues	2,033			704		264			435			30			—			3,466

Company restaurant expenses
Food and paper	664			179		40			100			13			—			996
Payroll and employee benefits	357			123		42			96			3			—			621
Occupancy and other operating expenses	591			147		44			80			11			—			873
Company restaurant expenses	1,612			449		126			276			27			—			2,490

General and administrative expenses	88			88		54			45			6			46			327
Franchise and license expenses	3			20		14			6			1			—			44
Closures and impairment (income) expenses	6			—		(1		)	—			—			295			300
Refranchising (gain) loss	—			—		—			—			—			(38		)	(38		)
Other (income) expense	(11		)	—		—			(1		)	—			5			(7		)
Total costs and expenses, net	1,698			557		193			326			34			308			3,116

Operating Profit (loss)	$	335		$	147	$	71		$	109		$	(4	)	$	(308	)	$	350



Quarter Ended 12/28/13	China			KFC		Pizza Hut		Taco Bell			India			Corporate and Unallocated			Consolidated
Company sales	$	2,237		$	706	$	187	$	423		$	37		$	—		$	3,590
Franchise and license fees and income	35			264		162		121			7			—			589
Total revenues	2,272			970		349		544			44			—			4,179

Company restaurant expenses
Food and paper	750			248		54		121			15			—			1,188
Payroll and employee benefits	453			165		56		118			6			—			798
Occupancy and other operating expenses	713			205		60		99			18			—			1,095
Company restaurant expenses	1,916			618		170		338			39			—			3,081

General and administrative expenses	124			130		74		68			9			74			479
Franchise and license expenses	5			25		15		5			—			—			50
Closures and impairment (income) expenses	16			3		1		—			1			—			21
Refranchising (gain) loss	—			—		—		—			—			(13		)	(13		)
Other (income) expense	(9		)	2		—		(3		)	—			—			(10		)
Total costs and expenses, net	2,052			778		260		408			49			61			3,608

Operating Profit (loss)	$	220		$	192	$	89	$	136		$	(5	)	$	(61	)	$	571

YUM! Brands, Inc.

Recast Annual Division System Sales Growth

(unaudited)



Year Ended 12/28/13	China		KFC		Pizza Hut		Taco Bell		India		Worldwide
System sales, reported	(1	)%	—	%	—	%	4	%	11	%	1	%
System sales, excluding FX	(4	)%	3	%	1	%	4	%	20	%	2	%
Same store sales growth (decline)	(13	)%	1	%	(1	)%	3	%	—	%	(2	)%



Year Ended 12/29/12	China		KFC		Pizza Hut		Taco Bell		India		Worldwide
System sales, reported	23	%	2	%	2	%	7	%	13	%	4	%
System sales, excluding FX and 53rd week in 2011	20	%	6	%	5	%	9	%	29	%	6	%
Same store sales growth (decline)	4	%	3	%	3	%	8	%	5	%	4	%



Year Ended 12/31/11	China		KFC		Pizza Hut		Taco Bell		India		Worldwide
System sales, reported	35	%	9	%	5	%	1	%	36	%	10	%
System sales, excluding FX and 53rd week in 2011	29	%	4	%	2	%	(1	)%	35	%	6	%
Same store sales growth (decline)	19	%	1	%	1	%	(2	)%	10	%	3	%

The above tables represent recasted annual division system sales growth pursuant to the reorganization of our YRI and U.S. businesses into three global divisions: KFC, Pizza Hut and Taco Bell. The sale of our A&W and Long John Silver's businesses in 2011, which were previously reported as part of our U.S. and YRI segments as applicable, unfavorably impacted 2012 Worldwide system sales growth as shown above by 3%.



YUM! Brands, Inc.
Recast Quarterly Division System Sales Growth
(unaudited)


Quarter Ended 3/23/13	China		KFC		Pizza Hut		Taco Bell		India		Worldwide
System sales, reported	(8	)%	2	%	1	%	7	%	(1	)%	1	%
System sales, excluding FX	(9	)%	3	%	1	%	7	%	3	%	1	%
Same store sales growth (decline)	(20	)%	1	%	(1	)%	6	%	(14	)%	(3	)%


Quarter Ended 6/15/13	China		KFC		Pizza Hut		Taco Bell		India		Worldwide
System sales, reported	(10	)%	1	%	1	%	3	%	22	%	—	%
System sales, excluding FX	(12	)%	4	%	2	%	3	%	31	%	1	%
Same store sales growth (decline)	(20	)%	2	%	—	%	2	%	7	%	(2	)%


Quarter Ended 9/7/13	China		KFC		Pizza Hut		Taco Bell		India		Worldwide
System sales, reported	1	%	(1	)%	1	%	3	%	12	%	1	%
System sales, excluding FX	(2	)%	2	%	2	%	3	%	20	%	1	%
Same store sales growth (decline)	(11	)%	—	%	(1	)%	2	%	(1	)%	(2	)%


Quarter Ended 12/28/13	China		KFC		Pizza Hut		Taco Bell		India		Worldwide
System sales, reported	6	%	(1	)%	(1	)%	3	%	10	%	1	%
System sales, excluding FX	3	%	4	%	—	%	3	%	22	%	3	%
Same store sales growth (decline)	(4	)%	—	%	(2	)%	2	%	2	%	(1	)%

YUM BRANDS INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - July 16, 2014

Attached files

YUM BRANDS INC Reports