Presentation

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