Kentucky Fried Chicken 2014 Annual Report Download

Download and view the complete annual report

Please find the complete 2014 Kentucky Fried Chicken annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 176

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176

Yum! Brands 2014 Annual Report

Table of contents

  • Page 1
    Yum! Brands 2014 Annual Report

  • Page 2
    .... In this Annual Report, Greg will share his perspectives on the business and his vision for the company. David C. Novak Executive Chairman of the Board, Yum! Brands, Inc. CONTENTS DEAR PARTNERS | 1 CHINA DIVISION | 2-5 KFC DIVISION | 6 PIZZA HUT DIVISION | 7 TACO BELL DIVISION | 8 INDIA DIVISION...

  • Page 3
    ... in the first half of 2014. Specifically, our China Division operating profit increased 116% and Yum! EPS grew 27% through our first two quarters, prior to Special Items. We were convinced 2014 would be a year of at least 20% EPS growth. The July Shanghai Husi supplier incident changed all that...

  • Page 4
    ... 737 new restaurants across the country in 2014. We continued our disciplined approach to development, shifting our new-unit program toward higher return investments. In 2015, we plan to open 700 more new units in China. In addition to the massive new-unit opportunity we have with KFC and Pizza Hut...

  • Page 5
    ...three-star price. This translates to extreme value for our customers and an experience they cannot get anywhere else in China. In 2015, we intend to grow same-store sales through constant innovation of our core offerings while we grow our breakfast and late night business. Pizza Hut Home Service now...

  • Page 6
    ...the Pizza Hut Home Service customer experience and grow same-store sales. Before I move on to our other divisions, I want to provide some details around a further write-down of our investment in Little Sheep. We recorded a noncash Special Item net charge of $361 million in the fourth quarter of 2014...

  • Page 7
    5

  • Page 8
    ... for international development, opening nearly 670 restaurants. The new news for KFC is the U.S. business is performing much better. The KFC U.S. business grew same-store sales 6% in the 4th quarter and is poised for its best year in some time. All of this sets up the KFC division for a solid 2015...

  • Page 9
    ... a long runway ahead of us and are making the decisions necessary to drive future growth in the U.S. and globally. Panama U.S. PH consumer photo Opened 465 International Units in 2014 Pizza Hut is a new reporting division and includes all Pizza Hut results outside of the China and India divisions...

  • Page 10
    ...DIVISION Taco Bell had a solid 2014, with strong system sales growth. Our breakfast launch last spring was a success and we continue to report strong margins. We had our strongest rate of new-unit development in more than a decade with 236 new restaurants. 89% of these new restaurants were opened by...

  • Page 11
    ... results. Yum! India President Niren Chaudhary is using this opportunity to strengthen our positioning with consumers as well as our business model. This will set us up for success in a country which is expected to become the largest consumer market in the world. *India system sales growth excludes...

  • Page 12
    .... There are a number of points to this evolution, so let me explain. KFC and Pizza Hut are clearly global category leaders. And with 250 restaurants outside the U.S. and strong innovation and operating capability, Taco Bell is growing its global presence. Our brands are world renowned and respected...

  • Page 13
    ... Hut and Taco Bell are truly on the ground floor of global growth and the power of Yum! is stronger than ever. I know we have the right structure with 100% brand focused teams, digital innovation, know-how sharing, operating capability and franchise economics to deliver strong value and performance...

  • Page 14
    ... in annual franchise fees and Yum! Restaurants Per Million People in the Top Ten Emerging Markets concentrate our investments in high-growth, highreturn businesses. We've announced plans to take our franchise mix outside of China and India from 91% to about 95% over the next three years through...

  • Page 15
    91% of Restaurants Outside China and India are Franchise Owned Finally, we have a strong track record of returning significant amounts of cash to our shareholders in the form of dividends and share buybacks. Over the last 5 years, we've repurchased 61 million shares, representing a 13% reduction in...

  • Page 16
    ...for feeding the world. I also want to thank our Board of Directors, with special gratitude to David Grissom, who has retired from our Board after a number of years of dedicated service. At the same time, I want to welcome Elane Stock to the Board. After reading this Annual Report, I hope you clearly...

  • Page 17
    ... whtx one system operathonal excellence as our foundathon Make Customer Mania come alive for every customer in every restaurant Build dynasties in every country Always connect with customers, always reach, always lead a company whtx a xuge xeart Open doors and grow each other Truly care about...

  • Page 18
    ... and World Class Operations Drive Aggressive Unit Expansion Everywhere, Especially in Emerging Markets Build Leading Brands in Every Significant Category in China and India Create Industry Leading Returns Through Franchising and Disciplined Use of Capital Maximize Long-Term Shareholder Value how...

  • Page 19
    ... Louisville, Kentucky 40213 March 20, 2015 Dear Fellow Shareholders: On behalf of your Board of Directors, we are pleased to invite you to attend the 2015 Annual Meeting of Shareholders of YUM! Brands, Inc. The Annual Meeting will be held Friday, May 1, 2015, at 9:00 a.m., local time, in the YUM...

  • Page 20

  • Page 21
    ... the meeting. Proxy Statement WHO CAN VOTE: ...You can vote if you were a shareholder of record as of the close of business on March 3, 2015. ANNUAL REPORT: ...A copy of our 2014 Annual Report on Form 10-K is included with this proxy statement. WEBSITE: ...You may also read the Company's Annual...

  • Page 22
    ...Equity Awards at Year-End ...Option Exercises and Stock Vested ...Pension Benefits ...Nonqualified Deferred Compensation ...Potential Payments Upon Termination or Change in Control ... 27 28 28 46 47 48 50 52 53 55 58 DIRECTOR COMPENSATION EQUITY COMPENSATION PLAN INFORMATION AUDIT COMMITTEE REPORT...

  • Page 23
    YUM! Brands, Inc. 1441 Gardiner Lane Louisville, Kentucky 40213 PROXY STATEMENT For Annual Meeting of Shareholders To Be Held On May 1, 2015 The Board of Directors (the ''Board of Directors'' or the ''Board'') of YUM! Brands, Inc., a North Carolina corporation (''YUM'' or the ''Company''), solicits...

  • Page 24
    ... March 3, 2015, YUM had 433,394,412 shares of common stock outstanding. Proxy Statement What am I voting on? ...You will be voting on the following four (4) items of business at the Annual Meeting: • The election of twelve (12) directors to serve until the next Annual Meeting of Shareholders and...

  • Page 25
    ... shares. We recommend that you contact your broker and/or our transfer agent to consolidate as many accounts as possible under the same name and address. Our transfer agent is American Stock Transfer and Trust Company, LLC, which may be reached at 1(888) 439-4986. 2015 Proxy Statement YUM! BRANDS...

  • Page 26
    ...? ...The Company will announce the voting results of the Annual Meeting on a Current Report on Form 8-K filed within four business days of the Annual Meeting. What if other matters are presented for consideration at the Annual Meeting? ...As of the date of this proxy statement, our management knows...

  • Page 27
    ... OF THE COMPANY The business and affairs of YUM are managed under the direction of the Board of Directors. The Board believes that good corporate governance is a critical factor in achieving business success and in fulfilling the Board's responsibilities to shareholders. The Board believes that...

  • Page 28
    ...To make a director nomination at the 2016 Annual Meeting, a shareholder must notify YUM's Secretary no later than February 1, 2016. Notices should be sent to: Corporate Secretary, YUM! Brands, Inc., 1441 Gardiner Lane, Louisville, Kentucky 40213. The nomination must contain the information described...

  • Page 29
    ...of business conduct. The Code of Conduct also sets forth information and procedures for employees to report ethical or accounting concerns, misconduct or violations of the Code of Conduct in a confidential manner. The Code of Conduct applies to the Board of Directors and all employees of the Company...

  • Page 30
    .... The Audit Committee provides a summary to the full Board at each regular Board meeting of the risk area reviewed together with any other risk related subjects discussed at the Audit Committee meeting. In addition, our Management Planning and Development 8 YUM! BRANDS, INC. 2015 Proxy Statement

  • Page 31
    ... pay programs that incorporate team and individual performance, customer satisfaction and shareholder return; emphasize long-term incentives; drive ownership mentality; and require executives to personally invest in Company stock. In early 2015, the Management Planning and Development Committee...

  • Page 32
    ...COMPANY Elane B. Stock is the Group President of Kimberly-Clark International, a division of Kimberly Clark Corporation. During 2014, the Company paid Kimberly-Clark Corporation approximately $2.6 million for paper products used in the normal course of business in some of its restaurants. The Board...

  • Page 33
    ...light of corporate goals set by the Committee • Reviews and approves the compensation of the chief executive officer and other senior executive officers • Reviews management succession planning The Board has determined that all of the members of the Management Planning and Development Committee...

  • Page 34
    ... officers, director compensation, and transactions with other companies if the aggregate amount of the transaction does not exceed the greater of $1 million or 2% of that company's total revenues and the related person is not an executive officer of the other company. 12 YUM! BRANDS, INC. 2015...

  • Page 35
    ...hold a meaningful number of shares of Company common stock and expects non-management directors to retain shares acquired as compensation as a director until at least 12 months following their departure from the Board. YUM directors receive a significant portion of their annual compensation in stock...

  • Page 36
    ... of the Board of Directors for election this year to hold office until the 2016 Annual Meeting and until their respective successors are elected and qualified are provided below. The biographies of each of the nominees below contains information regarding the person's service as a director, business...

  • Page 37
    ... Operating and management experience, including as chief executive officer of Taco Bell • Expertise in strategic planning, global branding, franchising, and corporate leadership • Public company directorship and committee experience 11MAR201504422029 Greg Creed Age 57 Director Since 2014 Chief...

  • Page 38
    ..., including as president and chief executive officer of global travel-related services company • Expertise in finance, marketing and international business development • Public company directorship and committee experience • Independent of Company 16 YUM! BRANDS, INC. 2015 Proxy Statement

  • Page 39
    ... Age 62 Director Since 1997 Executive Chairman, YUM • Operating and management experience, including as chairman and chief executive officer of the Company • Expertise in strategic planning, global branding, franchising, and corporate leadership • Public company directorship and committee...

  • Page 40
    ... • Global operating and management experience, including as group president of a consumer products company • Expertise in branding, marketing, sales, strategic planning and international business development • Independent of Company 11MAR201504415998 Elane B. Stock Age 50 Director Since 2014...

  • Page 41
    ... election of directors can be found in our Corporate Governance Principles at www.yum.com/ investors/ governance/principles.asp and at page 7 under ''What other significant Board practices does the Company have? - Majority Voting Policy.'' Proxy Statement 19 2015 Proxy Statement YUM! BRANDS, INC.

  • Page 42
    ... include audits of financial statements of certain employee benefit plans, agreed upon procedures and other attestations. Tax fees consist principally of fees for international tax compliance, tax audit assistance, and VAT and other tax advisory services. 20 YUM! BRANDS, INC. 2015 Proxy Statement

  • Page 43
    ... competitive market for talent, while maximizing shareholder returns. This approach has made our management team a key driver in the Company's strong performance over both the long and short term. We believe that our compensation program has attracted and retained strong leaders, and is closely...

  • Page 44
    ...proxy goes on to state, ''We believe that all of our long-term incentive compensation is performance-based.'' However, restrictions on the vesting of unearned equity awards are adopt a policy that in the event of a change in control (as 15MAR201511093851 22 YUM! BRANDS, INC. 2015 Proxy Statement

  • Page 45
    ... with a high emphasis on long-term incentive compensation (currently, 70% of CEO's compensation and 50% of other NEOs' compensation). The executive's long-term incentive pay only creates value when the Company's stock price increases and with favorable shareholder expectations. Therefore, we believe...

  • Page 46
    ... the Company oppose the proposal? ...In short, the Board believes that the Company's current executive compensation program and employment of double-trigger accelerated vesting of all unvested awards is appropriate and effective by aligning the interests of our executives and our shareholders and...

  • Page 47
    ... and investment power with respect to the shares of common stock beneficially owned by him or her. None of the persons in this table holds in excess of one percent of the outstanding YUM common stock. Directors and executive officers as a group beneficially own approximately 2%. Our internal stock...

  • Page 48
    ... at year-end and the exercise price divided by the fair market value of the stock). These amounts shown reflect units denominated as common stock equivalents held in deferred compensation accounts for each of the named persons under our Director Deferred Compensation Plan or our Executive Income...

  • Page 49
    ... suit are described in the Company's Annual Report on Form 10-K for the year ended December 27, 2014 in Part 1, Item 3, Legal Proceedings and Note 18, Contingencies, to the Consolidated Financial Statements included in Part II, Item 8, and in previous SEC filings. Pursuant to North Carolina law...

  • Page 50
    ... Pizza Hut and Taco Bell divisions were opened by franchisees, generating high returns for YUM. • The KFC division grew same-store sales 3% and operating profit 9% through robust international performance and an improving US business. • The Taco Bell division launched breakfast, a new value menu...

  • Page 51
    ... is ''at-risk'' pay, where the compensation paid is determined based on Company results. If short-term and long-term financial and operational goals are not achieved, then performance-related compensation will decrease. If goals are exceeded, then performance-related compensation will increase. As...

  • Page 52
    ... stock price must increase and, in the case of PSUs, we must attain certain performance thresholds before our executives realize any value. As shown below, our 2011 PSU award under our Performance Share Plan did not pay out to our NEOs in 2014 since the earnings per share compound annual growth rate...

  • Page 53
    ...total target compensation for 2015 at $5 million, setting his salary at $1 million, bonus target at 100% of salary and long-term incentive pay (split 75% SARs and 25% PSUs) at an economic value of $3 million. In making this decision, the Committee took into consideration Mr. Novak's responsibilities...

  • Page 54
    ... Board discretion to ''clawback'' compensation if executive's conduct results in significant financial or reputational harm to Company Make a substantial portion of NEO target pay ''at risk'' Double-trigger vesting of equity awards upon change in control âœ- âœ- Employment agreements Re-pricing...

  • Page 55
    ...% 2010 2011 2012 Annual Bonus 2013 2014 Base Salary EPS Growth 12MAR201503111646 The Committee did not make any changes to Mr. Novak's target direct compensation for 2014. Mr. Novak's actual direct compensation, comprised of base salary, bonus paid and annual long-term incentive award value...

  • Page 56
    ...,000 0% $0 -10% 2010 Base Salary (1) 2011 Annual Bonus 2012 SARs 2013 PSUs 2014 EPS Growth 13MAR201500030573 Proxy Statement The 2011 and 2012 PSU awards did not pay out. The 2013 and 2014 PSU awards, described at page 41, will not pay out if the Company's current TSR ranking against the...

  • Page 57
    ... • Reviews compensation trends • Reviews market analysis of Director compensation and makes recommendations to Board (bi-annually) Proxy Statement November • Reviews competitive analysis/benchmarking for CEO and all CEO direct reports • Reviews bonus and performance share plan metrics...

  • Page 58
    ..., managing product introductions, marketing, driving new unit development, and customer satisfaction and overall operations improvements across the entire franchise system. Accordingly, in calibrating size-adjusted market values, which values are as of the last completed fiscal year at the time of...

  • Page 59
    ......Our annual executive compensation program has three primary pay components: base salary, annual performance-based cash bonuses and long-term equity performance-based incentives. We also offer retirement and other benefits. Element Base salary Annual Performance-Based Cash Bonuses Long-Term Equity...

  • Page 60
    ... Statement The performance objectives were developed through the Company's annual financial planning process, which takes into account division growth strategies, historical performance, and the expected future operating environment. These projections include profit growth to achieve our EPS growth...

  • Page 61
    ... 15% 20% 15% 0 0 15 23 38 Proxy Statement FINAL TACO BELL TEAM FACTOR Bergren Operating Profit Growth(2) System Same-Store Sales Growth System Net Builds(7) System Customer Satisfaction Total Weighted Team Performance - Pizza Hut Division FINAL PIZZA HUT TEAM FACTOR(3) (1) Weighted Average(8) 37...

  • Page 62
    ...performance factor, combined with a team factor of 37, resulted in him receiving 33% of his target bonus. (1) (2) Prior to Special Items Prior to foreign currency translations Proxy Statement • All divisions failed to make their operating profit plans for the year • KFC and Taco Bell increased...

  • Page 63
    ...would have paid out during 2014 had the Company's average earnings per share during the 2011 - 2013 performance period reached the required minimum average growth threshold of seven percent). Proxy Statement 2014 Grant Value $7,150,000 (1) Reason Award brought his total direct compensation to our...

  • Page 64
    ...to the same terms and conditions as, the Retirement Plan without regard to Internal Revenue Service limitations on amounts of includible compensation and maximum benefits. The TCN is an unfunded, unsecured account-based retirement plan that provides an annual contribution floor of 7.5% of salary and...

  • Page 65
    ...receive a benefit of two times salary and bonus. The terms of these change-incontrol agreements are described beginning on page 59. In 2013, the Company eliminated tax gross-ups for executives, including the NEOs, for any excise tax due under Section 4999 of the Internal Revenue Code and implemented...

  • Page 66
    ...Chief Financial Officer pay is not subject to these limits.) The bonus pool for 2014 is equal to 1.5% of operating profit (adjusted to exclude special items believed to be distortive of consolidated results on a yearover-year basis - these are the same items excluded in the Company's annual earnings...

  • Page 67
    ... ''Compensation Discussion and Analysis'' and, on the basis of that review and discussion, recommended to the Board that the section be incorporated by reference into the Company's Annual Report on Form 10-K and included in this proxy statement. THE MANAGEMENT PLANNING AND DEVELOPMENT COMMITTEE...

  • Page 68
    ... Grismer Chief Financial Officer of YUM Jing-Shyh S. Su Vice Chairman of the Board of YUM and Chairman and Chief Executive Officer of YUM Restaurants China Year (b) Salary Bonus ($)(1) ($) (c) (d) Stock Awards ($)(2) (e) Total ($) 2014 1,450,000 2013 1,450,000 2012 1,450,000 2014 2013 2012 707...

  • Page 69
    ... a market rate of interest on his LRP account plus an annual benefit allocation equal to 9.5% of his salary plus target bonus. For Mr. Su, amounts in this column reflect the aggregate increase in actuarial present value of age 62 accrued benefits under the Yum International Retirement Plan (''YIRP...

  • Page 70
    ...portion of the performance period following the change in control. Amounts in this column reflect the number of SARs and stock options granted to executives during the Company's 2014 fiscal year. SARs allow the grantee to receive the number of shares of YUM common stock that is equal in value to the...

  • Page 71
    ...in Part II, Item 8, ''Financial Statements and Supplementary Data'' of the 2014 Annual Report in Notes to Consolidated Financial Statements at Note 14, ''Share-based and Deferred Compensation Plans.'' There can be no assurance that the SARs/stock options will ever be exercised or PSU awards paid out...

  • Page 72
    ...(1) Stock Awards Equity Equity incentive incentive plan awards: plan awards: market or Number of payout value unearned of unearned shares, units shares, units or other rights or other rights that have not that have not vested vested (#)(4) ($)(3) (i) Name (a) Novak Number Market Number of Number...

  • Page 73
    ...his 2012 bonus into the EID Program's Matching Stock Fund. The market value of these awards are calculated by multiplying the number of shares covered by the award by $72.85, the closing price of YUM stock on the NYSE on December 31, 2014. The awards reflected in this column are unvested performance...

  • Page 74
    ... - - - Name (a) Novak Grismer Su Creed Bergren (1) 15MAR201511093851 Proxy Statement These RSUs represent Mr. Grismer's deferral of his 2011 bonus, which was deferred in 2012 and vested in 2014, under the Company's Executive Income Deferral Program. 52 YUM! BRANDS, INC. 2015 Proxy Statement

  • Page 75
    ... the YUM! Brands International Retirement Plan (''YIRP'') determined using interest rate and mortality rate assumptions consistent with those used in the Company's financial statements. 2014 FISCAL YEAR PENSION BENEFITS TABLE Number of Years of Credited Service (#) (c) 28 - 25 2 6 6 Present Value of...

  • Page 76
    ... are calculated as the actuarial equivalent of the participant's life only annuity. Participants who terminate employment prior to meeting eligibility for early or normal retirement must take their benefits from this plan in the form of a monthly annuity. 54 YUM! BRANDS, INC. 2015 Proxy Statement

  • Page 77
    ... corporations that is controlled by the Company. Benefits are payable under the same terms and conditions as the Retirement Plan without regard to Internal Revenue Service limitations on amounts of includible compensation and maximum benefits. (4) Present Value of Accumulated Benefits For all plans...

  • Page 78
    ... the new distribution cannot begin until two years after it would have begun without the election to re-defer. Investments in the YUM! Stock Fund and YUM! Matching Stock Fund are only distributed in shares of Company stock. LRP LRP Account Returns. The LRP provides an annual earnings credit to...

  • Page 79
    ... of the year-end balance for each executive which has previously been reported as compensation to the executive in the Company's Summary Compensation Table for 2014 and prior years. Novak Grismer Su Creed Bergren 87,578,135 2,500,045 3,798,759 4,519,162 - 2015 Proxy Statement YUM! BRANDS, INC. 57

  • Page 80
    ... if the NEO's employment had terminated on December 31, 2014, given the NEO's compensation and service levels as of such date and, if applicable, based on the Company's closing stock price on that date. These benefits are in addition to benefits available generally to salaried employees, such as...

  • Page 81
    ... in 2013, executives must be employed with the Company on the date of the change in control and involuntarily terminated upon or following the change in control and during the performance period. See Company's CD&A on page 43 for more detail. Proxy Statement 2015 Proxy Statement YUM! BRANDS, INC...

  • Page 82
    EXECUTIVE COMPENSATION If a change in control and each NEO's involuntary termination had occurred as of December 31, 2014, the following payments or other benefits would have been made or become available. Novak $ Severance Payment Annual Incentive Accelerated Vesting of Stock Options and SARs ...

  • Page 83
    ... assumptions used to value the awards, see the discussion of stock awards and option awards contained in Part II, Item 8, ''Financial Statements and Supplementary Data'' of the 2014 Annual Report in Notes to Consolidated Financial Statements at Note 14, ''Share-based and Deferred Compensation Plans...

  • Page 84
    ...,000 stock retainer annually and the Chair of the Management Planning and Development Committee (Mr. Walter in 2014) receives an additional $15,000 stock retainer annually. Initial Stock Grant upon Joining Board. Non-employee directors also receive a one-time stock grant with a fair market value of...

  • Page 85
    ... which we may issue shares of stock to our directors, officers and employees under the 1999 Long Term Incentive Plan (''1999 Plan''), the 1997 Long Term Incentive Plan (the ''1997 Plan''), SharePower Plan and Restaurant General Manager Stock Option Plan (''RGM Plan''). Number of Securities To be...

  • Page 86
    ... the performance of RGMs. In addition, the Plan provides incentives to Area Coaches, Franchise Business Leaders and other supervisory field operation positions that support RGMs and have profit and loss responsibilities within a defined region or area. While all non-executive officer employees are...

  • Page 87
    ... that arise throughout the year. Management is responsible for the Company's financial reporting process, including its system of internal control over financial reporting, and for the preparation of consolidated financial statements in accordance with accounting principles generally accepted in the...

  • Page 88
    ... recommended to the Board of Directors that it include the audited consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended December 27, 2014 for filing with the SEC. Based on the Committee's discussions with management and the independent auditors...

  • Page 89
    ... the Corporate Secretary. Under our bylaws, certain procedures are provided that a shareholder must follow to nominate persons for election as directors or to introduce an item of business at an Annual Meeting of Shareholders that is not included in our proxy 2015 Proxy Statement YUM! BRANDS, INC...

  • Page 90
    ... INFORMATION statement. These procedures provide that nominations for director nominees and/or an item of business to be introduced at an Annual Meeting of Shareholders must be submitted in writing to our Corporate Secretary at our principal executive offices and you must include information set...

  • Page 91
    ..., Louisville, Kentucky 40213 (Address of principal executive offices) (Zip Code) (502) 874-8300 Registrant's telephone number, including area code: SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT Title of Each Class Common Stock, no par value Name of Each Exchange on Which Registered New...

  • Page 92

  • Page 93
    ... About Market Risk Financial Statements and Supplementary Data Changes In and Disagreements with Accountants on Accounting and Financial Disclosure Controls and Procedures Other Information 12 14 16 35 36 70 70 70 71 Directors, Executive Officers and Corporate Governance Executive Compensation...

  • Page 94

  • Page 95
    ..., which speak only as of the date hereof. In making these statements, we are not undertaking to address or update any of our forward-looking statements set forth herein in future filings or communications regarding our business results. 13MAR2015160 Form 10-K YUM! BRANDS, INC. - 2014 Form 10-K 1

  • Page 96
    ... the United States, China and India. In the first Narrative Description of Business General YUM has over 41,000 restaurants in more than 125 countries and territories. Primarily through the three concepts of KFC, Pizza Hut and Taco Bell (the ''Concepts''), the Company develops, operates, franchises...

  • Page 97
    ... restaurant franchise concept. The Colonel perfected his secret blend of 11 herbs and spices for Kentucky Fried Chicken in 1939 and signed up his first franchisee in 1952. • KFC operates in 120 countries and territories throughout the world. As of year end 2014, KFC had 4,828 units in China, 395...

  • Page 98
    ... in terms of number of system units or system sales, either on a worldwide or individual country basis. Form 10-K Research and Development (''R&D'') The Company operates R&D facilities in Shanghai, China (China Division); Plano, Texas (KFC and Pizza Hut Divisions); Irvine, California (Taco Bell...

  • Page 99
    ... to federal, state, local and international regulation of our business. Employees As of year end 2014, the Company and its Concepts employed approximately 537,000 persons, approximately 87 percent of whom were part-time. The Company believes that it provides working conditions and compensation that...

  • Page 100
    ... of operations in China and the value of our Chinese assets are affected by fluctuations in currency exchange rates, which may adversely affect reported earnings. There can be no assurance as to the future effect of any such changes on our results of operations, financial condition or cash flows...

  • Page 101
    ... Our growth strategy depends in large part on our ability to increase our net restaurant count in markets outside the U.S., especially China and other emerging markets. The successful development of new units will depend in large part on our ability and the ability of our Concepts' YUM! BRANDS, INC...

  • Page 102
    ... media by our customers or employees could increase our costs, lead to litigation or result in negative publicity that could damage our reputation. Changes in, or noncompliance with, governmental regulations may adversely affect our business operations, growth prospects or financial condition. Our...

  • Page 103
    ... to income taxes as well as non-income based taxes, such as payroll, sales, use, value-added, net worth, property, withholding and franchise taxes in both the U.S. and various foreign jurisdictions. We are also subject to regular reviews, examinations and audits by the Internal Revenue Service and...

  • Page 104
    ...corporate headquarters and a KFC research facility in Louisville, Kentucky are owned by the Company. Additional information about the Company's properties is included in the Consolidated Financial Statements in Part II, Item 8. The Company believes that its properties are generally in good operating...

  • Page 105
    ... from 2011 to December 2013. Prior to this position, Mr. Creed served as President and Chief Concept Officer of Taco Bell U.S., a position he held beginning in December 2006. Jing-Shyh S. Su, 62, is Vice-Chairman of the Board of YUM and Chairman and Chief Executive Officer of YUM Restaurants China...

  • Page 106
    ...Common Stock trades under the symbol YUM and is listed on the New York Stock Exchange (''NYSE''). The following sets forth the high and low NYSE composite closing sale prices by quarter for the Company's Common Stock and dividends per common share. 2014 Quarter First Second Third Fourth 2013 Quarter...

  • Page 107
    ... 12/27/14 Total On November 22, 2013, our Board of Directors authorized share repurchases through May 2015 of up to $750 million (excluding applicable transaction fees) of our outstanding Common Stock. On November 20, 2014, our Board of Directors authorized additional share repurchases through May...

  • Page 108
    ...refranchising of restaurants Repurchase shares of Common Stock Dividends paid on Common Stock Balance Sheet Data Total assets Long-term debt Total debt Other Data Number of stores at year end Company Unconsolidated Affiliates Franchisees & licensees $ (a) 2014 2013 Fiscal Year 2012 2011(h) 2010...

  • Page 109
    ... our Management's Discussion and Analysis of Financial Condition and Results of Operations. Special Items in 2011 negatively impacted Operating Profit by $187 million, primarily due to $86 million in losses and other costs relating to the Long John Silvers and A&W All American Food divestitures...

  • Page 110
    ... Statements and the Risk Factors set forth in Item 1A. YUM! Brands, Inc. (''YUM'' or the ''Company'') operates, franchises or licenses a worldwide system of over 41,000 restaurants in more than 125 countries and territories operating primarily under the KFC, Pizza Hut or Taco Bell (collectively...

  • Page 111
    ... in the fourth quarter of 2014. Our Pizza Hut business in China, which was only impacted by the 2014 supplier incident, is recovering more quickly. China Division same-store sales and Operating Profit declined 5% and 8%, respectively, for the full year 2014. Also during 2014: • KFC Division system...

  • Page 112
    ...2013 (5) 6 (4) (15) 2014 Company sales Franchise and license fees and income Total revenues Restaurant profit Restaurant Margin % Operating Profit Interest expense, net Income tax provision Net Income - including noncontrolling interests Net Income (loss) - noncontrolling interests Net Income - YUM...

  • Page 113
    ... Pizza Hut UK dine-in business (See Note 4) Other Special Items Income (Expense)(a) Special Items Income (Expense) - Operating Profit Losses related to the extinguishment of debt - Interest Expense, net (See Note 4) Special Items Income (Expense) before income taxes Tax Benefit (Expense) on Special...

  • Page 114
    ...-store sales growth and moderate margin improvement, which we expect to drive annual Operating Profit growth of 15%. See the Results of Operations Summary above for discussion of items impacting China's 2014 performance. % B/(W) 2014 Company sales Franchise and license fees and income Total revenues...

  • Page 115
    ...ITEM 7 Management's Discussion and Analysis of Financial Condition and Results of Operations Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: 2014 vs. 2013 Store Portfolio Actions Other $ 358 (104) (75) (124) 55 $ (322) 151 26 52 (93) $ Income...

  • Page 116
    .... 2 4 2014 System Sales Growth, reported System Sales Growth, excluding FX Same-Store Sales Growth % 2% 6% 3% 1 8 3 (5) (0.9) ppts. 1 7 2013 -% 3% 1% 2014 Company sales Franchise and license fees and income Total revenues Restaurant profit Restaurant margin % G&A expenses Operating Profit $ 2,320...

  • Page 117
    ... April 2013. Significant other factors impacting Company sales and/or Restaurant profit were higher restaurant operating costs in international markets and higher commodity costs, which was offset by Company same-store sales growth of 2%. Franchise and License Fees and Income In 2014, the increase...

  • Page 118
    PART II ITEM 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 2014 Company sales Franchise and license fees and income Total revenues Restaurant profit Restaurant margin % G&A expenses Operating Profit $ 607 541 $ $ $ $ 1,148 $ $ 2013 609 538 1,147 $ $ 2012 ...

  • Page 119
    ... Company-owned Pizza Hut dine-in restaurants in the UK in the fourth quarter of 2012 and net new unit growth. G&A Expenses In 2014, the increase in G&A expenses, excluding the impact of foreign currency translation, was driven by strategic investments in international G&A, higher litigation costs...

  • Page 120
    PART II ITEM 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 2014 Company sales Franchise and license fees and income Total revenues Restaurant profit Restaurant margin % G&A expenses Operating Profit $ 1,452 411 $ $ $ $ 1,863 $ $ 2013 1,474 395 1,869 $ $ ...

  • Page 121
    ... units, predominately KFC and Pizza Hut restaurants. While we believe India is a significant long-term growth driver, our ongoing earnings model currently assumes no impact from India growth. % B/(W) 2014 Total revenues Operating Profit (loss) (a) % B/(W) 2013 Reported Ex FX 24 NM 2014 36 NM 2013...

  • Page 122
    ...6 - (a) Effective the beginning of 2014, results from our 28 Mauritius stores are included in KFC and Pizza Hut Divisions as applicable. Prior year units have been adjusted for comparability while division System Sales Growth, Total Revenues and Operating Profit (loss) have not been restated due to...

  • Page 123
    ...primarily due to lower Operating Profit before Special Items and higher income taxes paid, partially offset by approximately $100 million in lower pension contributions. Net cash used in investing activities was $936 million in 2014 compared to $886 million in 2013. The increase was primarily driven...

  • Page 124
    ... 2014 our Board of Directors approved cash dividends of $0.41 per share of Common Stock that were distributed on February 6, 2015 to shareholders of record at the close of business on January 16, 2015. The Company targets an ongoing annual dividend payout ratio of 40% to 45% of net income. rate for...

  • Page 125
    ... II ITEM 7 Management's Discussion and Analysis of Financial Condition and Results of Operations Subsequent to December 27, 2014, we contributed $75 million to the Plan. We do not anticipate making any additional significant contributions to the Plan in 2015. Investment performance and corporate...

  • Page 126
    ... our business units (which are aligned based on geography) in our KFC, Pizza Hut and Taco Bell Divisions and individual brands in our China and India Divisions. Fair value is the price a willing buyer would pay for the reporting unit, and is generally estimated using discounted 32 YUM! BRANDS, INC...

  • Page 127
    PART II ITEM 7 Management's Discussion and Analysis of Financial Condition and Results of Operations agreement is at prevailing market rates our primary consideration is consistency with the terms of our current franchise agreements both within the country that the restaurants are being ...

  • Page 128
    PART II ITEM 7 Management's Discussion and Analysis of Financial Condition and Results of Operations tax assets primarily relate to temporary differences in profitable U.S. federal, state and foreign jurisdictions, net operating losses in certain foreign jurisdictions, the majority of which do not ...

  • Page 129
    PART II ITEM 7A Quantitative and Qualitative Disclosures About Market Risk The Company is exposed to financial market risks associated with interest rates, foreign currency exchange rates and commodity prices. In the normal course of business and in accordance with our policies, we manage these ...

  • Page 130
    PART II ITEM 8 Financial Statements and Supplementary Data Index to Financial Information Page Reference Consolidated Financial Statements Report of Independent Registered Public Accounting Firm Consolidated Statements of Income for the fiscal years ended December 27, 2014, December 28, 2013 and ...

  • Page 131
    PART II ITEM 8 Financial Statements and Supplementary Data Report of Independent Registered Public Accounting Firm The Board of Directors and Shareholders YUM! Brands, Inc. We have audited the accompanying consolidated balance sheets of YUM! Brands, Inc. and Subsidiaries (YUM) as of December 27, ...

  • Page 132
    ... Data Consolidated Statements of Income YUM! BRANDS, Inc. AND SUBSIDIARIES FISCAL YEARS ENDED DECEMBER 27, 2014, DECEMBER 28, 2013 AND DECEMBER 29, 2012 (in millions, except per share data) Revenues Company sales Franchise and license fees and income Total revenues Costs and Expenses, Net Company...

  • Page 133
    PART II ITEM 8 Financial Statements and Supplementary Data Consolidated Statements of Comprehensive Income YUM! BRANDS, INC. AND SUBSIDIARIES FISCAL YEARS ENDED DECEMBER 27, 2014, DECEMBER 28, 2013 AND DECEMBER 29, 2012 (in millions) Net income - including noncontrolling interests Other ...

  • Page 134
    PART II ITEM 8 Financial Statements and Supplementary Data Consolidated Statements of Cash Flows YUM! BRANDS, INC. AND SUBSIDIARIES FISCAL YEARS ENDED DECEMBER 27, 2014, DECEMBER 28, 2013 AND DECEMBER 29, 2012 (in millions) Cash Flows - Operating Activities Net Income - including noncontrolling ...

  • Page 135
    PART II ITEM 8 Financial Statements and Supplementary Data Consolidated Balance Sheets YUM! BRANDS, INC. AND SUBSIDIARIES DECEMBER 27, 2014 AND DECEMBER 28, 2013 (in millions) ASSETS Current Assets Cash and cash equivalents Accounts and notes receivable, net Inventories Prepaid expenses and other ...

  • Page 136
    ... of a long-term investment nature (net of tax impact of $4 million) Reclassification of translation adjustments into income Pension and post-retirement benefit plans (net of tax impact of $69 million) Comprehensive Income (loss) Dividends declared Repurchase of shares of Common Stock Employee stock...

  • Page 137
    ... of the Taco Bell concept outside of India Division Prior to 2014, our reporting segments consisted of YUM Restaurants International (''YRI''), the United States, China and India. In the first quarter of 2014 we changed our management reporting structure to align our global operations outside of...

  • Page 138
    ...Income or Consolidated Statements of Cash Flows. months in the second and third quarters and four months in the fourth quarter. International businesses within our KFC, Pizza Hut and Taco Bell divisions close approximately one month earlier to facilitate consolidated reporting. Our next fiscal year...

  • Page 139
    ... new cost basis. Fair value is an estimate of the price a franchisee would pay for the restaurant and its related assets and is determined by discounting the estimated future after-tax cash flows of the restaurant, which include a deduction for royalties we would receive under a franchise agreement...

  • Page 140
    ... limited to, forecasts and budgets of financial needs of cash for working capital, liquidity plans and expected cash requirements in the United States. See Note 16 for a further discussion of our income taxes. Fair Value Measurements. Fair value is the price we would receive to sell an asset or pay...

  • Page 141
    ... carrying value. Fair value is the price a willing buyer would pay for a reporting unit, and is generally estimated using discounted expected future after-tax cash flows from Companyowned restaurant operations and franchise royalties. The discount rate is our estimate of the required rate of return...

  • Page 142
    ... and the increase in the market value of our stock over the past several years, our Common Stock balance is frequently zero at the end of any period. Accordingly, $725 million, $640 million and $794 million in share repurchases were recorded as a reduction in Retained Earnings in 2014, 2013 and 2012...

  • Page 143
    ...significant future new unit development by the Company. Long-term average growth assumptions subsequent to this assumed recovery included same-store-sales growth of 4% and average annual net unit growth of approximately 75 units, primarily operated by the Company. The Little Sheep business continued...

  • Page 144
    ... Income tax provision Net Income (loss) noncontrolling interests Net Income - YUM! Brands, Inc. $ $ $ Both the 2014 and 2013 Little Sheep trademark and reporting unit fair values were based on the estimated prices a willing buyer would pay. The fair values of the trademark were determined using...

  • Page 145
    ... 12 Pizza Hut $ $ 10 2 12 2012 Taco Bell $ $ 1 3 4 India $ $ - - - Worldwide $ $ 8 29 37 (a) Store closure (income) costs include the net gain or loss on sales of real estate on which we formerly operated a Company-owned restaurant that was closed, lease reserves established when we cease using...

  • Page 146
    ... lost profits associated with a 2012 poultry supply incident. $ $ $ NOTE 8 Supplemental Balance Sheet Information 2014 $ 55 14 185 254 $ 2013 89 16 181 286 Prepaid Expenses and Other Current Assets Income tax receivable Assets held for sale(a) Other prepaid expenses and current assets Prepaid...

  • Page 147
    PART II ITEM 8 Financial Statements and Supplementary Data NOTE 9 Goodwill and Intangible Assets China KFC $ 281 - 281 75 - (18) 338 - 338 2 - (28) 312 - $ 312 $ Pizza Hut $ 194 (17) 177 11 - (1) 204 (17) 187 - - (4) 200 (17) 183 $ Taco Bell $ $ 110 - 110 - - (4) 106 - 106 8 - - 114 - 114 $ India ...

  • Page 148
    PART II ITEM 8 Financial Statements and Supplementary Data NOTE 10 Short-term Borrowings and Long-term Debt 2014 2013 $ $ $ 71 - 71 2,803 - 172 2,975 (71) 2,904 14 $ 2,918 $ $ 264 3 267 2,746 416 175 3,337 (264) 3,073 4 $ 3,077 Short-term Borrowings Current maturities of long-term debt Current ...

  • Page 149
    PART II ITEM 8 Financial Statements and Supplementary Data The annual maturities of short-term borrowings and long-term debt as of December 27, 2014, excluding capital lease obligations of $175 million and fair value hedge accounting adjustments of $7 million, are as follows: Year ended: 2015 2016 ...

  • Page 150
    ... and hourly U.S. employees. The qualified plan meets the requirements of certain sections of the Internal Revenue Code and provides benefits to a broad group of employees with restrictions on discriminating in favor of highly compensated employees with regard 56 YUM! BRANDS, INC. - 2014 Form 10...

  • Page 151
    ... year Service cost Interest cost Plan amendments Curtailments Special termination benefits Benefits paid Settlements(a)(b) Actuarial (gain) loss Administrative expense Benefit obligation at end of year Change in plan assets Fair value of plan assets at beginning of year Actual return on plan assets...

  • Page 152
    ... used to determine the net periodic benefit cost for fiscal years: 2014 Discount rate Long-term rate of return on plan assets Rate of compensation increase 5.40% 6.90% 3.75% 2013 4.40% 7.25% 3.75% 2012 4.90% 7.25% 3.75% 4.30% 3.75% 2013 5.40% 3.75% Our estimated long-term rate of return on plan...

  • Page 153
    ... on closing market prices or net asset values. A mutual fund held as an investment by the Plan includes shares of YUM common stock valued at $0.5 million at December 27, 2014 and $0.2 million at December 28, 2013 (less than 1% of total plan assets in each instance). 13MAR2015160 Form 10-K Benefit...

  • Page 154
    ... expense our total matching contribution of $12 million in both 2014 and 2013 and $13 million in 2012. NOTE 14 Overview Share-based and Deferred Compensation Plans Our Executive Income Deferral (''EID'') Plan allows participants to defer receipt of a portion of their annual salary and all...

  • Page 155
    ...: 2014 Options and SARs Restricted Stock Units Performance Share Units Total Share-based Compensation Expense Deferred Tax Benefit recognized EID compensation expense not share-based $ 48 6 1 55 17 8 $ 2013 44 6 (1) 49 15 11 $ 2012 42 5 3 50 15 5 Form 10-K $ $ $ $ $ $ $ $ $ 13MAR2015160 Cash...

  • Page 156
    ... pension and post-retirement benefit plan losses during 2013 include amortization of net losses of $51 million, settlement charges of $30 million, amortization of prior service cost of $2 million and the related income tax benefit of $30 million. See Note 13. 62 YUM! BRANDS, INC. - 2014 Form 10-K

  • Page 157
    ...earnings as well as U.S. tax credits and deductions. In years 2014 and 2013, this item was negatively impacted by the $160 million and $222 million, respectively, of non-cash impairments of Little Sheep goodwill, which resulted in no related tax benefit. See Note 4. In 2012, this item was positively...

  • Page 158
    PART II ITEM 8 Financial Statements and Supplementary Data The details of 2014 and 2013 deferred tax assets (liabilities) are set forth below: 2014 Operating losses and tax credit carryforwards Employee benefits Share-based compensation Self-insured casualty claims Lease-related liabilities Various...

  • Page 159
    ...1,863 141 13,279 Form 10-K $ $ $ 13MAR2015160 Operating Profit; Interest Expense, Net; and Income Before Income Taxes 2014 2013 2012 China(b) KFC Division Pizza Hut Division Taco Bell Division India Unallocated restaurant costs(c)(d) Unallocated and corporate expenses(c)(e) Unallocated Closures...

  • Page 160
    PART II ITEM 8 Financial Statements and Supplementary Data Depreciation and Amortization 2014 2013 2012 China KFC Division Pizza Hut Division Taco Bell Division India Corporate $ 411 187 39 83 10 9 739 $ 394 190 36 84 9 8 721 $ 337 161 55 98 6 8 665 $ $ $ 2014 China KFC Division Pizza Hut ...

  • Page 161
    ... statements concerning the Company's current and future business and financial condition. The four complaints were subsequently consolidated and transferred to the U.S. District Court for the Western District of Kentucky. On August 5, 2013, lead plaintiff, Frankfurt Trust Investment GmbH, filed...

  • Page 162
    ..., rejected each shareholder's demand. On May 9, 2013, Mr. Bauman filed a putative derivative action in Jefferson Circuit Court, Commonwealth of Kentucky against certain current and former officers and directors of the Company asserting breach of fiduciary duty, waste of corporate assets and unjust...

  • Page 163
    ... 0.89 0.87 0.37 13MAR2015160 Form 10-K First Quarter Revenues: Company sales Franchise and license fees and income Total revenues Restaurant profit Operating Profit(b) Net Income - YUM! Brands, Inc.(c) Basic earnings per common share Diluted earnings per common share Dividends declared per common...

  • Page 164
    ... Framework (2013), our management concluded that our internal control over financial reporting was effective as of December 27, 2014. KPMG LLP, an independent registered public accounting firm, has audited the Consolidated Financial Statements included in this Annual Report on Form 10-K and...

  • Page 165
    ...proxy statement which will be filed with the Securities and Exchange Commission no later than 120 days after December 27, 2014. Information regarding executive officers of the Company is included in Part I. ITEM 11 Executive Compensation Information regarding executive and director compensation and...

  • Page 166
    ... 15 Exhibits and Financial Statement Schedules (a) (1) (2) Financial Statements: Consolidated Financial Statements filed as part of this report are listed under Part II, Item 8 of this Form 10-K. Financial Statement Schedules: No schedules are required because either the required information is not...

  • Page 167
    ... executive officer) Chief Financial Officer (principal financial officer) Vice President, Finance and Corporate Controller (principal accounting officer) Director Director Director Director Director Director Director Director Director Vice-Chairman of the Board Director Date February 17, 2015...

  • Page 168
    ... Report on Form 10-Q for the quarter ended June 13, 2009. YUM 1997 Long Term Incentive Plan, as effective October 7, 1997, which is incorporated herein by reference from Exhibit 10.8 to YUM's Annual Report on Form 10-K for the fiscal year ended December 27, 1997. YUM Executive Incentive Compensation...

  • Page 169
    ... by reference from Exhibit 10.15.1 to YUM's Quarterly Report on Form 10-Q for the quarter ended March 23, 2013. Form of YUM 1999 Long Term Incentive Plan Award Agreement (2015) (Stock Options), as filed herewith. YUM! Brands, Inc. International Retirement Plan, as in effect January 1, 2005, which is...

  • Page 170
    ...the copy of the exhibit electronically filed with the SEC. The omitted information has been filed separately with the SEC pursuant to our application for confidential treatment. Indicates a management contract or compensatory plan. 13MAR201517272138 Form 10-K 76 YUM! BRANDS, INC. - 2014 Form 10-K

  • Page 171
    ... account number, please call AST at (888) 439-4986 or YUM Shareholder Coordinator at (888) 298-6986. BENEFICIAL SHAREHOLDERS (those who hold YUM shares in the name of a bank or broker) should direct communications about all administrative matters related to their accounts to their stockbroker. LONG...

  • Page 172
    ... SYMBOL-YUM The New York Stock Exchange is the principal market for YUM Common Stock, which trades under the symbol YUM. 19MAR201018500758 Franchise Inquiries ONLINE FRANCHISE INFORMATION Information about potential franchise opportunities is available at www.yumfranchises.com YUM's Annual Report...

  • Page 173

  • Page 174
    ...Gibbs 51 Chief Executive Officer, Pizza Hut Patrick Grismer 53 Chief Financial Officer, Yum! Brands, Inc. Brian Niccol 40 Chief Executive Officer, Taco Bell Muktesh (''Micky'') Pant 60 Chief Executive Officer, KFC David E. Russell 45 Vice President, Finance and Corporate Controller, Yum! Brands, Inc...

  • Page 175
    FINANCIAL HIGHLIGHTS (In millions, except for per share amounts) Year-end 2014 2013 % B/(W) change Company sales Franchise and license fees and income Total revenues Operating Profit Net Income - Yum! Brands, Inc. Diluted Earnings Per Common Share before Special Items Special Items Earnings Per ...

  • Page 176
    ALONE WE'RE DELICIOUS. TOGETHER WE'RE YUM! Yum! Brands, Inc., trades under the symbol YUM and is proud to meet the listing requirements of the NYSE, the world's leading equities market.