Yum! Brands owns and franchises KFC, Taco Bell, and Pizza Hut restaurant brands with over 37,000 locations globally. In 2011, Yum! had net sales of $12.6 billion, gross margin of $8.99 billion, and net income of $1.475 billion. Yum! derives the majority of its profits from franchised locations outside the United States and has been expanding internationally, especially in China. The document provides financial and operational details on Yum! Brands from 2009 to 2011.

1. Jacob Schmell
Heekyoung Ko
Taylor Schenk

2.  KFC  Taco Bell  Pizza Hut

3.  37,000 locations in 120 countries
 50% outside U.S.
 Majority of profit outside U.S.

4.  Franchised year
KFC : 1952
Taco Bell : 1962
Pizza Hut : 1958
 Spin-off company of PepsiCo from 1997
 Changed its name fromTRICON Global
Restaurants, Inc in 2002

5. 2009
2010
2011$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Net sales Gross margin Net Income
$10,836
$7,833
$1,083
$11,343
$8,252
$1,333
$12,626
$8,993
$1,475
2009
2010
2011
(in millions)

6. $10,836
$11,343
$12,626
$7,833
$8,252
$8,993
$1,083
$1,333 $1,475
$35.38
$49.05
$59.01
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2009 2010 2011
Net sales
Gross margin
Net Income
stock value

7. - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000
2009
2010
2011
2,800
2,484
2,139
14,819
14,977
13,867
Company
Franchise
(units)
16,006
17,461
17,619

8.  In December 2011, they sold A&W All-
American Food Restaurants and Long John
Silver’s brands.

9. Global Brands
Being Better, not Bigger
Multibranding approach

10.  Income, expense
 Assets and liabilities
 Gains and losses arising from foreign
currency exchange rate

11.  Payment of an initial, non-refundable fee and
continuing fees
 Internal costs to provide support services to
their franchisees and licensees are charged to
General and Administrative expenses.

12.  Franchise contract rights
 Trademarks or brands
 Lease tenancy rights
 Favorable operating lease
 Reacquired franchise rights

13.  Franchise income:
 Initial fees
 Continuing fees
▪ Based on percentage of sale
 Renewal fees
 Rental income
▪ If building is leased by them

14.  Cash equivalents represent funds we have
temporarily invested
 with original maturities not exceeding three
months
 We value our inventories at the lower of cost
(FIFO) or market

15.  YUM! calculates depreciation and
amortization on a straight-line basis :
 5-25 years for buildings and improvements
 3-20 years for machinery and equipment
 3-7 years for capitalized software costs

16. • YUM monitor the franchisees and licensees and
record provisions for estimated losses on
receivables when we believe it probable that they
will be unable to make required payments
• Trade receivables consisting of royalties
• due within 30 days of the period in which the
corresponding sales occur

17.  The consolidated financial statements are in
conformity with U.S. generally accepted
accounting principles(GAAP).
 Also,YUM maintained effective internal
control over financial reporting

18. $8,834
$32,990
$12,626
$27,006
$1,319
$5,503
$2.74
$5.27
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
YUM McDonalds
Total Assets
Total Revenue
Net Income
Earnings Per Share-diluted
(in millions)

19.  Prediction ofYUM – Positive
 Stock
 China division sales growth