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50 YUM! BRANDS, INC.
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 30, 2006 and December 31, 2005, and the related consolidated statements of income, cash
flows and shareholders’ equity and comprehensive income for each of the years in the three-year period ended
December 30, 2006. These consolidated financial statements are the responsibility of YUM’s management.
Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assur-
ance about whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the financial position of YUM as of December 30, 2006 and December 31, 2005, and the results of its opera-
tions and its cash flows for each of the years in the three-year period ended December 30, 2006, in conformity
with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States), the effectiveness of YUM’s internal control over financial reporting as of December 30, 2006,
based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO), and our report dated February 28, 2007 expressed an
unqualified opinion on management’s assessment of, and the effective operation of, internal control over
financial reporting.
As discussed in Notes 2 and 16 to the consolidated financial statements, YUM adopted the provisions of
the Financial Accounting Standards Board’s Statement of Financial Accounting Standards No. 123R (Revised
2004), “Share-Based Payment,” and changed its method for accounting for share-based payments in 2005.
As discussed in Note 2 to the consolidated financial statements, YUM changed its method of quantifying
errors in 2006. Also, as discussed in Notes 2 and 15 to the consolidated financial statements, YUM adopted
the provisions of the Financial Accounting Standards Board’s Statement of Financial Accounting Standards No.
158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans — an amendment of
FASB Statements No. 87, 88, 106 and 132 (R),” in 2006.
KPMG LLP
Louisville, Kentucky
February 28, 2007