Pizza Hut 2008 Annual Report Download - page 132

10
(e) Available Information
The Company makes available through the Investor Relations section of its internet website at www.yum.com its annual
report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed
or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after electronically
filing such material with the Securities and Exchange Commission. Our Corporate Governance Principles and our Code
of Conduct are also located within this section of the website. The reference to the Company’s website address does not
constitute incorporation by reference of the information contained on the website and should not be considered part of this
document. These documents, as well as our SEC filings, are available in print to any shareholder who requests a copy
from our Investor Relations Department.
Item 1A. Risk Factors.
You should carefully review the risks described below as they identify important factors that could cause our actual
results to differ materially from those in our forward-looking statements and historical trends. These risks are not
exclusive, and our business and our results of operations could also be affected by other risks that we cannot anticipate or
that we do not consider material based on currently available information.
Food safety and food-borne illness concerns may have an adverse effect on our business.
Food safety is a top priority, and we dedicate substantial resources to ensure that our customers enjoy safe, quality food
products. However, food-borne illnesses, such as E. coli, hepatitis A, trichinosis or salmonella, and food safety issues
have occurred in the past (see Note 21, Contingencies, to the Consolidated Financial Statements included in Part II, Item 8
of this report for a discussion of litigation arising from an E. coli outbreak allegedly linked to a number of Taco Bell
restaurants in the Northeast U.S. during November/December 2006), and could occur in the future. Any report or
publicity linking us or one of our Concepts to instances of food-borne illness or other food safety issues, including food
tampering, could adversely affect our Concepts’ brands and reputations as well as our revenues and profits. If our
customers become ill from food-borne illnesses, we could also be forced to temporarily close some restaurants. In
addition, instances of food-borne illness or food tampering occurring solely at restaurants of competitors could adversely
affect our sales as a result of negative publicity about the foodservice industry generally. Food-borne illness or food
tampering could also be caused by food suppliers or distributors and, as a result, could be out of our control. The
occurrence of food-borne illnesses or food safety issues could also adversely affect the price and availability of affected
ingredients, which could result in disruptions in our supply chain and/or lower margins for us and our franchisees.
Furthermore, like other companies in the restaurant industry, some of our products may contain genetically engineered
food products, and our U.S. suppliers are currently not required to label their products as such. Increased regulation of
and opposition to genetically engineered food products have on occasion and may in the future force the use of alternative
sources at increased costs and lower margins for us and our franchisees.
Our China operations subject us to risks that could negatively affect our business.
A significant and growing portion of our restaurants are located in China. As a result, our financial results are
increasingly dependent on our results in China, and our business is increasingly exposed to risks there. These risks
include changes in economic conditions (including wage and commodity inflation, consumer spending and unemployment
levels), tax rates and laws and consumer preferences, as well as changes in the regulatory environment and increased
competition. In addition, our results of operations in China and the value of our Chinese assets are affected by
fluctuations in currency exchange rates, which may favorably or 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.
Form 10-K