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)
February 14, 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
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
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: February 15, 2001
/s/ Brent A. Woodford
Vice President and Controller
(Principal Accounting Officer)
LOUISVILLE, KY (FEBRUARY 14, 2001) – Tricon Global Restaurants, Inc. (NYSE:YUM) reported ongoing operating earnings of $120 million, or $0.81 per share for the fourth quarter ended December 30, 2000. Full year, ongoing operating earnings were $444 million, or $2.98 per share, a 16% increase. Additionally, in the quarter, Tricon took unusual charges totaling $36 million, principally related to AmeriServe, wage and hour litigation, and costs related to joint venture formation. The fourth quarter and full year includes the benefit of an extra reporting week.
Financial Highlights
($MM Except Per Diluted Share Amounts)
% Change vs. Full Year % Change vs.
Q4 Prior Year 2000 Prior Year
------- ------------ --------- ------------
System Sales 6,994 2 22,159 2
Revenues(a) 2,182 (6) 7,093 (9)
Ongoing Operating Profit 242 - 888 1
Ongoing Operating Earnings 120 (2) 444 8
======================================================================
Ongoing Operating EPS(b) .81 4 2.98 16
======================================================================
Net Facility Actions EPS .20 (24) .66 (53)
Unusual items EPS (.15) - (.87) NM
Reported EPS (c) .86 (7) 2.77 (29)
David C. Novak, Chairman and CEO said, “We were pleased to deliver on target fourth quarter profit results, reflecting solid performance by Pizza Hut and our International business along with strong restaurant margins. For the full year 2000, we achieved 16% growth in ongoing operating earnings per share, despite a decline of 2% in U.S. blended same-store sales. Strong performance by our International business was a key driver, as were significant reductions in overhead, interest expense and the ongoing operating tax rate.
“Our #1 challenge is to improve sales trends at Taco Bell and KFC in 2001. We have new leadership in place and are starting to execute new strategies, including an intensified focus on restaurant operations. For 2001, we continue to expect solid international growth, combined with sequential, quarterly sales improvement in our U.S. business, which will result in ongoing operating EPS of $3.18 to $3.22.
“Going forward, we will continue to report on five key areas of our business that we believe are important in measuring our growth and progress in becoming a unique restaurant company. During 2000 we made substantial progress in all areas except for U.S. blended same-store sales growth.
“In the three years since Tricon was spun-off, Operating EPS has more than doubled, net debt has been reduced by $2.1 billion, restaurant margin improved over 3 full points and system sales have increased by 8%.
“As a result of Tricon’s strong cash flow and financial condition, we are please to announce that the Board has authorized up to an additional $300 million share repurchase program to be executed over the next two years. The Board’s action demonstrates their confidence in Tricon’s business outlook for 2001 and beyond.”
Repurchases of Tricon common stock under the program may be made from time to time in open market and/or privately negotiated transactions, and will be subject to market conditions and other factors.
INTERNATIONAL EXPANSION and BUSINESS PERFORMANCE
A record 929 new traditional restaurants were opened during the year, including 702 new restaurants opened by our franchise and affiliated partners. The strong international expansion included significant openings in China, Japan, Korea, Mexico, New Zealand, Thailand and the U.K. The KFC and Pizza Hut brands were the key drivers of our international expansion as Tricon now has over 5,900 KFC restaurants and over 4,000 Pizza Hut restaurants outside the U.S. For 2001, the company expects comparable levels of new restaurant expansion.
For the quarter, system sales were up 6% before a 5 percentage point reduction due to foreign currency translation. Same store sales growth was achieved in these key countries during the quarter: China, Korea, Mexico, and the U.K., as well as the KFC business in Australia. Ongoing operating profit, in U.S. dollars, increased by 14% on top of 29% growth last year, driven by system restaurant expansion and an extra reporting week.
For the full year, the international business continued to deliver strong growth with system sales of $7.6 billion, up 8% for the year before a 2 percentage point reduction due to foreign currency translation. Same store sales growth and a strong 6% net increase in system restaurants fueled this growth. Ongoing operating profit, in U.S. dollars, increased 16% to $309 million for the year. Going forward, we continue to expect the international business to grow ongoing operating profits at about 15% per year, prior to any significant changes in foreign currency.
U.S. BLENDED SAME-STORE SALES and BUSINESS PERFORMANCE
For the fourth quarter, U.S. system sales increased 2%. Traditional restaurant growth and the benefit of an extra reporting week were partially offset by a 3% decline in U.S. company blended same-store sales. Pizza Hut’s strong same-store sales performance in the fourth quarter was more than offset by lower sales at Taco Bell and KFC. In the fourth quarter, ongoing operating profit declined 9%, as additional expenses related to our Taco Bell franchise business and lower same-store sales more than offset favorable commodity costs and the benefit of an extra reporting week.
For the full year, U.S. system sales of $14.5 billion were flat versus 1999, as net growth in traditional restaurant locations was offset by a 2% decline in same-store sales. During the year the system added 509 new traditional restaurants in the U.S. prior to closures. The growth in new restaurant locations was driven primarily by expansion of our KFC franchise partners, including new multibranded restaurants. The decline in same-store sales, additional expenses related to our Taco Bell franchise business, and the impact of refranchising during the year were key factors in the U.S. ongoing operating profit decline of 9% versus 1999.
For 2001, the company expects U.S. blended same-store sales growth of about 2%, led by solid performance at Pizza Hut and improving results at Taco Bell and KFC. U.S. ongoing operating profit is expected to be down slightly versus 2000, including the negative impact from refranchising.
MULTIBRANDED RESTAURANT GROWTH
In 2000, the number of multibranded restaurant locations increased by 450, to almost 1,200 system-wide by year-end. Tricon’s franchise partners are key investors in this concept as they now operate over 700 of the nearly 1,200 system-wide restaurants. Going forward, multibranding will be a key driver of U.S. restaurant growth. The company and its franchise and affiliated partners currently operate nearly 1,100 multibranded restaurants in the U.S. and over 100 outside the U.S. This includes over 600 KFC and Taco Bell combination restaurants, 400 Taco Bell and Pizza Hut combination restaurants and over 100 KFC and Pizza Hut combination restaurants. For 2001, Tricon expects continued rapid expansion of the multibranding concept, with an additional 450 to 500 new multibranded locations.
FRANCHISEE BUSINESS GROWTH
For the full year, franchise fees increased 9% to $788 million from our three brands worldwide. Franchise restaurant growth, through a combination of new restaurant expansion and the company’s refranchising program, fueled this growth. The company expects to substantially complete its refranchising program during 2001. For 2001, the company expects that its global franchise and affiliated partners will continue to expand with new restaurants at a rate comparable to 2000 and that global franchise fees will grow to over $835 million in 2001.
CASH FLOW and RETURNS
Tricon generated about $850 million of cash flow prior to investment in 2000. The company invested in a number of areas, including 370 new restaurants; 227 international and 143 in the U.S. The company also invested significantly in upgrading and remodeling existing restaurants and the program continues to progress on plan. Additionally, Tricon repurchased over $200 million of its own shares and reduced net debt by $79 million. As previously disclosed, Tricon spent significant dollars to quickly resolve the AmeriServe situation and ensure the continuity of distribution to all U.S. restaurants. For 2001, the company expects cash flow generated to invest will exceed $900 million.
The company's return on invested capital improved to over 18% in 2000. This measure has shown steady and consistent improvement from the 8% level at spin-off in 1997. It is now at a level which the company believe leads the QSR category.
FINANCIAL PROGRESS
For the fourth quarter, ongoing restaurant margin increased to 15.0% from 14.4% a year ago. The negative impact from lower U.S. blended same-store sales was more than offset by favorable commodity costs. Additionally, the refranchising of restaurants continued to enhance the reported margin.
Full year ongoing restaurant margin of 15.1% remained near the record level established last year. The benefit of favorable commodity costs was enhanced by solid restaurant controls, particularly in the fourth quarter, which nearly offset the entire unfavorable impact of lower U.S. blended same-store sales and higher wage rates. Additionally, the refranchising of restaurants benefited reported margin.
For 2001, the company expects restaurant margin to be comparable with the level of the past two years as investments are made in store level operations in the U.S. and new restaurant development in our international business.
Ongoing operating profit margin increased to a record 12.5% in 2000 from 11.3% a year ago.
Tricon continued to make progress in improving its financial health and achieving a sound balance sheet during 2000. For 2000, EBIT covered interest by almost 5 times demonstrating significant ability to service our debt. Total net debt at year-end was $2.3 billion, down from $2.4 billion last year.
TACO BELL FRANCHISE BUSINESS
As previously disclosed, certain of the company’s Taco Bell franchise operators are experiencing varying degrees of financial difficulties with respect to their franchise operations. We believe that these issues are primarily attributable to declines in store sales in the Taco Bell system, which have been impacted by the grocery product recalls of taco corn shells (Starlink) in the fourth quarter of 2000.
Taco Bell Corp. has established a $15 million loan program for those franchisees in need of short-term assistance due to the recent Starlink-impacted sales declines in the Taco Bell system. To date, this program has aided over 50 franchisees covering 1,200 Taco Bell restaurants. Additionally, Taco Bell Corp. is in various stages of discussions with a number of other Taco Bell franchisees and their lenders. The company believes that many of these franchisees will require various types of business and/or financial restructuring, which could include the purchase of some franchised restaurants by Taco Bell. Based on currently available information, the company believes that this group of franchisees represents approximately 1,000 Taco Bell restaurants.
In the third and fourth quarters of 2000, Tricon charged approximately $26 million to ongoing operating profit for expenses related to the Taco Bell franchise situation. These expenses, which relate primarily to allowances for doubtful franchise and license fee receivables, were reported as general and administrative expenses. Tricon intends to continually evaluate the appropriateness of the estimated allowances, and assess the need for any additional charges related to ongoing fees and other related financial contingencies in 2001. In this regard, the company anticipates that some additional expenses related to this situation may be incurred in 2001. These possible, additional expenses, along with the financial effects resulting 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 2001.
Ongoing Results*
Company Restaurant Margins
----------------------------------------------------------------------
Q4 Full Year
----------------------------------------------------------------------
2000 15.0% 15.1%
----------------------------------------------------------------------
1999 - Excluding Accounting Changes 14.4% 15.2%
----------------------------------------------------------------------
1999 - Reported 14.5% 15.4%
----------------------------------------------------------------------
2000 Same Store Sales
----------------------------------------------------------------------
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Full Year
----------------------------------------------------------------------
U.S. Blended -2 -3 Flat -3 -2
----------------------------------------------------------------------
KFC -3 -3 Flat -5 -3
----------------------------------------------------------------------
Pizza Hut -2 1 1 4 1
----------------------------------------------------------------------
Taco Bell Flat -6 -2 -9 -5
----------------------------------------------------------------------
*These results should be read in conjunction with the attached financial summary.
Financial Summary
Fourth Quarter 2000
(MMs Except Per Share Amounts)
Quarter %
------------------ Change
2000 1999 B/(W)
-------- -------- ---------
System sales(a) $ 6,994 $ 6,868 2
Company revenues(b)` $ 2,182 $ 2,311 (6)
Ongoing operating profit(c) $ 242 $ 244 -
Interest expense $ 55 $ 57 3
Income tax provision $ 67 $ 65 (4)
-------- --------
Ongoing operating earnings(c) $ 120 $ 122 (2)
======== ========
Earnings per diluted share components:
Ongoing operating earnings $ 0.81 $ 0.78 4
Accounting changes(d) - 0.03 NM
Facility actions net gain 0.20 0.27 (24)
Unusual items(e) (0.15) (0.15) -
-------- --------
Total $ 0.86 $ 0.93 (7)
======== ========
Full Year %
------------------ Change
2000 1999 B/(W)
-------- -------- ---------
System sales(a) $22,159 $21,762 2
Company revenues(b) $ 7,093 $ 7,822 (9)
Ongoing operating profit(c) $ 888 $ 881 1
Interest expense $ 176 $ 202 13
Income tax provision $ 268 $ 267 (1)
-------- --------
Ongoing operating earnings(c) $ 444 $ 412 8
======== ========
Earnings per diluted share components:
Ongoing operating earnings $ 2.98 $ 2.58 16
Accounting changes(d) - 0.11 NM
Facility actions net gain 0.66 1.41 (53)
Unusual items(e) (0.87) (0.18) NM
-------- --------
Total $ 2.77 $ 3.92 (29)
======== ========
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 “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 cause actual results to differ from those, projected in these statements. Factors that can cause actual results to differ materially include 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, the success of our refranchising strategy, fluctuations in commodity prices, supplier contracts, ongoing business viability of our key distributor and franchise operators, the ability to secure alternative distribution to our restaurants at competitive rates, and actuarially determined casualty loss estimates. Further information on 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 will hold a conference call to review its operating and financial performance at 9:00 a.m. EDT on Thursday, February 15, 2000. 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. and 703-326-3020 internationally beginning Thursday, February 15 at 11:00 a.m. EDT through Sunday, February 18 at 12:00 midnight EDT. The access code for the playback is 4974404.
Analysts are invited to contact:
Members of the media are invited to contact:
Individual shareholders are invited to contact:
TRICON Global Restaurants, Inc.
Condensed Consolidated Statement Of Income
(tabular amounts in millions, except per share amounts)
(unaudited)
%
% Pro Forma
Quarter Ended (a) Change Change
-------------------- B/(W) B/(W)
12/30/00 12/25/99 (b) (b)(c)
--------- --------- -------- ---------
Revenues
Company sales $ 1,930 $ 2,075 (7) (7)
Franchise and license fees 252 236 7 7
--------- ---------
2,182 2,311 (6) (6)
--------- ---------
Costs and expenses, net
Company restaurants
Food and paper 597 663 10 10
Payroll and employee
benefits 532 565 6 6
Occupancy and other
operating expenses 512 546 6 7
--------- ---------
1,641 1,774 8 8
General and administrative
expenses(d) 303 290 (4) (2)
Other (income) expense(e) (4) (5) (16) (16)
Facility actions net gain(f) (60) (70) (15) (15)
Unusual items(g) 36 44 19 19
--------- ---------
Total costs and expenses, 1,916 2,033 6 6
net(d)(h) --------- ---------
Operating profit 266 278 (4) (1)
Interest expense, net 55 57 3 3
--------- ---------
Income before income taxes 211 221 (4) (1)
Income tax provision(i) 83 76 (10) (15)
--------- ---------
Net income $ 128 $ 145 (12) (9)
========= =========
Basic EPS Data
EPS $ 0.88 $ 0.95 (8) (5)
========= =========
Average shares outstanding 146 153 4 4
========= =========
Diluted EPS Data
EPS $ 0.86 $ 0.93 (7) (3)
========= =========
Average shares outstanding 149 157 6 6
========= =========
See accompanying notes.
TRICON Global Restaurants, Inc.
Condensed Consolidated Statement Of Income
(tabular amounts in millions, except per share amounts)
(unaudited)
%
% Pro Forma
Year Ended(a) Change Change
-------------------- B/(W) B/(W)
12/30/00 12/25/99 (b) (b)(c)
--------- --------- -------- ---------
Revenues
Company sales $ 6,305 $ 7,099 (11) (11)
Franchise and license fees 788 723 9 9
--------- ---------
7,093 7,822 (9) (9)
--------- ---------
Costs and expenses, net
Company restaurants
Food and paper 1,942 2,238 13 13
Payroll and employee
benefits 1,744 1,956 11 11
Occupancy and other
operating expenses 1,665 1,814 8 8
--------- ---------
5,351 6,008 11 11
General and administrative
expenses(d) 879 920 4 6
Other (income) expense(e) (25) (16) 55 55
Facility actions net gain(f) (176) (381) (54) (54)
Unusual items(g) 204 51 NM NM
--------- ---------
Total costs and expenses, 6,233 6,582 5 6
net(d)(h) --------- ---------
Operating profit 860 1,240 (31) (29)
Interest expense, net 176 202 13 13
--------- ---------
Income before income taxes 684 1,038 (34) (32)
Income tax provision(i) 271 411 34 32
--------- ---------
Net income $ 413 $ 627 (34) (32)
========= =========
Basic EPS Data
EPS $ 2.81 $ 4.09 (31) (29)
========= =========
Average shares outstanding 147 153 4 4
========= =========
Diluted EPS Data
EPS $ 2.77 $ 3.92 (29) (27)
========= =========
Average shares outstanding 149 160 7 7
========= =========
See accompanying notes.
TRICON Global Restaurants, Inc.
Supplemental Schedule of Reportable Operating Segments'
Revenues and Operating Profit
(in millions)
(unaudited)
%
Quarter Ended(a) Change
-------------------- B/(W)
12/30/00 12/25/99 (b)
--------- --------- --------
System Sales
United States $ 4,597 $ 4,488 2
International 2,397 2,380 1
--------- ---------
Worldwide $ 6,994 $ 6,868 2
========= =========
Revenues
United States
Company sales $ 1,393 $ 1,508 (8)
Franchise and license
fees 168 161 5
--------- ---------
Total United States 1,561 1,669 (6)
--------- ---------
International
Company sales 537 567 (6)
Franchise and license
fees 84 75 13
--------- ---------
Total International 621 642 (3)
--------- ---------
Worldwide $ 2,182 $ 2,311 (6)
========= =========
%
Pro Forma
Quarter Ended (a) % Change Change
-------------------- B/(W) B/(W)
12/30/00 12/25/99 (b) (b)(c)
--------- --------- -------- ---------
Restaurant Margin
United States(d)(h) $ 209 $ 220 (5) (4)
International(d) 80 81 (3) (3)
--------- ---------
Worldwide $ 289 $ 301 (4) (3)
========= =========
Restaurant Margin As A Percent Of Company Sales
United States(d)(h) 15.0% 14.6% 0.4 ppts. 0.6 ppts.
International(d) 14.8% 14.3% 0.5 ppts. 0.4 ppts.
Worldwide 15.0% 14.5% 0.5 ppts. 0.6 ppts.
Operating Profit
United States(h) ongoing
operating profit $ 205 $ 227 (9)
International ongoing
operating profit 90 78 14
Ongoing unallocated
and corporate expenses (53) (60) 13
Foreign exchange gain (loss) - (1) NM
--------- ---------
Worldwide ongoing operating
profit 242 244 -
Accounting changes(d) - 8 NM
Facility actions net gain(f) 60 70 (15)
Unusual items(g) (36) (44) 19
--------- ---------
Reported operating
profit(d)(h) $ 266 $ 278 (4)
========= =========
See accompanying notes.
TRICON Global Restaurants, Inc.
Supplemental Schedule of Reportable Operating Segments'
Revenues and Operating Profit
(in millions)
(unaudited)
%
Year Ended(a) Change
-------------------- B/(W)
12/30/00 12/25/99 (b)
--------- --------- --------
System Sales
United States $ 14,514 $ 14,516 -
International 7,645 7,246 6
--------- ---------
Worldwide $ 22,159 $ 21,762 2
========= =========
Revenues
United States
Company sales $ 4,533 $ 5,253 (14)
Franchise and license
fees 529 495 7
--------- ---------
Total United States 5,062 5,748 (12)
--------- ---------
International
Company sales 1,772 1,846 (4)
Franchise and license
fees 259 228 14
--------- ---------
Total International 2,031 2,074 (2)
--------- ---------
Worldwide $ 7,093 $ 7,822 (9)
========= =========
%
% Pro Forma
Year Ended(a) Change Change
-------------------- B/(W) B/(W)
12/30/00 12/25/99 (b) (b)(c)
--------- --------- -------- ---------
Restaurant Margin
United States(d)(h) $ 687 $ 825 (17) (16)
International(d) 267 266 - -
--------- ---------
Worldwide $ 954 $ 1,091 (13) (12)
========= =========
Restaurant Margin As A Percent Of Company Sales
United States(d)(h) 15.2% 15.7% (0.5)ppts. (0.3)ppts.
International(d) 15.1% 14.4% 0.7 ppts. 0.7 ppts.
Worldwide 15.1% 15.4% (0.3)ppts. (0.1)ppts.
Operating Profit
United States(h) ongoing $ 742 $ 813 (9)
operating profit
International ongoing 309 265 16
operating profit
Ongoing unallocated
and corporate expenses (163) (194) 16
Foreign exchange gain (loss) - (3) NM
--------- ---------
Worldwide ongoing operating
profit 888 881 1
Accounting changes(d) - 29 NM
Facility actions net gain(f) 176 381 (54)
Unusual items(g) (204) (51) NM
--------- ---------
Reported operating
profit(d)(h) $ 860 $ 1,240 (31)
========= =========
See accompanying notes.
NOTES TO THE CONDENSED CONSOLIDATED STATEMENT OF INCOME AND
SUPPLEMENTAL SCHEDULE OF REPORTABLE OPERATING SEGMENTS' REVENUES AND
OPERATING PROFIT:
(tabular dollar amounts in millions, except per share amounts)
Quarter Ended 12/25/99
---------------------------------
Restaurant
Margin G&A Total
---------- ------- ----------
U.S. $ 3 $ - $ 3
International - 1 1
Unallocated - 4 4
---------- ------- ----------
Total $ 3 $ 5 $ 8
========== ======= ==========
Year Ended 12/25/99
---------------------------------
Restaurant
Margin G&A Total
---------- ------- ----------
U.S. $ 11 $ 4 $ 15
International - - -
Unallocated - 14 14
---------- ------- ----------
Total $ 11 $ 18 $ 29
========== ======= ==========
Quarter Ended
--------------------
12/30/00 12/25/99
--------- ---------
Equity income from investments in
unconsolidated affiliates $ (4) $ (6)
Foreign exchange net (gain) loss - 1
--------- ---------
Total other (income) expense $ (4) $ (5)
========= =========
Year Ended
--------------------
12/30/00 12/25/99
--------- ---------
Equity income from investments in
unconsolidated affiliates $ (25) $ (19)
Foreign exchange net (gain) loss - 3
--------- ---------
Total other (income) expense $ (25) $ (16)
========= =========
Quarter Ended
--------------------
12/30/00 12/25/99
--------- ---------
Refranchising net gains $ 74 $ 90
Store closure net costs (6) (11)
Impairment charges for stores that
will continue to be used in the
business (4) (6)
Impairment charges for stores to be
closed (4) (3)
--------- ---------
$ 60 $ 70
========= =========
U.S. $ 66 $ 79
International (6) (9)
--------- ---------
Total $ 60 $ 70
========= =========
After-tax net gain $ 30 $ 43
========= =========
Per diluted share $ 0.20 $ 0.27
========= =========
Year Ended
--------------------
12/30/00 12/25/99
--------- ---------
Refranchising net gains $ 200 $ 422
Store closure net costs (10) (13)
Impairment charges for stores that
will continue to be used in the
business (8) (16)
Impairment charges for stores to be
closed (6) (12)
--------- ---------
$ 176 $ 381
========= =========
U.S. $ 188 $ 385
International (12) (4)
--------- ---------
Total $ 176 $ 381
========= =========
After-tax net gain $ 98 $ 226
========= =========
Per diluted share $ 0.66 $ 1.41
========= =========
Unusual items of $44 million ($24 million after-tax or $0.15 per diluted share) in the quarter and $51 million ($29 million after-tax or $0.18 per diluted share) year-to-date 1999 primarily included:
TRICON Global Restaurants, Inc.
Restaurant Units Activity Summary
For the 53 Weeks Ended December 30, 2000
(unaudited)
Unconsolidated
Company Affiliates Franchisees Licensees Total
----------- -------------- ----------- --------- --------
KFC U.S.
Balance at December 25, 1999 1,439 - 3,743 49 5,231
Openings and acquisitions 75 - 159 - 234
Refranchising and licensing (139) - 139 - -
Closures (36) - (63) (2) (101)
----------- -------------- ----------- --------- --------
Balance at December 30, 2000 1,339 - 3,978 47 5,364
=========== ============== =========== ========= ========
% of Total 25.0% - 74.1% 0.9% 100.0%
Pizza Hut U.S.
Balance at December 25, 1999 2,355 - 4,446 1,283 8,084
Openings and acquisitions 43 - 106 205 354
Refranchising and licensing (506) - 506 - -
Closures (91) - (170) (250) (511)
----------- -------------- ----------- --------- --------
Balance at December 30, 2000 1,801 - 4,888 1,238 7,927
=========== ============== =========== ========= ========
% of Total 22.7% - 61.7% 15.6% 100.0%
Taco Bell U.S.
Balance at December 25, 1999 1,190 - 3,921 1,768 6,879
Openings 25 - 101 98 224
Refranchising and licensing (27) - 36 (9) -
Closures (26) - (62) (269) (357)
----------- -------------- ----------- --------- --------
Balance at December 30, 2000 1,162 - 3,996 1,588 6,746
=========== ============== =========== ========= ========
% of Total 17.2% - 59.2% 23.6% 100.0%
Total U.S.
Balance at December 25, 1999 4,984 - 12,110 3,100 20,194
Openings and acquisitions 143 - 366 303 812
Refranchising and licensing (672) - 681 (9) -
Closures (153) - (295) (521) (969)
----------- -------------- ----------- --------- --------
Balance at December 30, 2000 4,302 - 12,862 2,873 20,037
=========== ============== =========== ========= ========
% of Total 21.5% - 64.2% 14.3% 100.0%
International
Balance at December 25, 1999 1,997 1,178 6,304 309 9,788
Openings 227 108 594 21 950
Refranchising and licensing (85) (9) 94 - -
Closures (55) (53) (210) (40) (358)
Other(a) (263) 620 (357) - -
----------- -------------- ----------- --------- --------
Balance at December 30, 2000 1,821 1,844 6,425 290 10,380
=========== ============== =========== ========= ========
% of Total 17.5% 17.8% 61.9% 2.8% 100.0%
Worldwide
Balance at December 25, 1999 6,981 1,178 18,414 3,409 29,982
Openings 370 108 960 324 1,762
Refranchising and licensing (757) (9) 775 (9) -
Closures (208) (53) (505) (561) (1,327)
Other(a) (263) 620 (357) - -
----------- -------------- ----------- --------- --------
Balance at December 30, 2000 6,123(b) 1,844 19,287 3,163 30,417
=========== ============== =========== ========= ========
% of Total 20.1% 6.1% 63.4% 10.4% 100.0%