Pizza Hut 2009 Annual Report Download - page 94

3
PART I
Item 1. Business.
YUM! Brands, Inc. (referred to herein as “YUM”, the “Registrant” or the “Company”), was incorporated under the laws
of the state of North Carolina in 1997. The principal executive offices of YUM are located at 1441 Gardiner Lane,
Louisville, Kentucky 40213, and the telephone number at that location is [phone].
YUM, together with its subsidiaries, is referred to in this Form 10-K annual report (“Form 10-K”) as the Company. The
terms “we,” “us” and “our” are also used in the Form 10-K to refer to the Company. Throughout this Form 10-K, the
terms “restaurants,” “stores” and “units” are used interchangeably.
This Form 10-K should be read in conjunction with the Forward-Looking Statements on page 2 and the Risk Factors set
forth in Item 1A.
(a) General Development of Business
In January 1997, PepsiCo announced its decision to spin-off its restaurant businesses to shareholders as an independent
public company (the “Spin-off”). Effective October 6, 1997, PepsiCo disposed of its restaurant businesses by distributing
all of the outstanding shares of Common Stock of YUM to its shareholders. On May 16, 2002, following receipt of
shareholder approval, the Company changed its name from TRICON Global Restaurants, Inc. to YUM! Brands, Inc.
(b) Financial Information about Operating Segments
YUM consists of six operating segments: KFC-U.S., Pizza Hut-U.S., Taco Bell-U.S., Long John Silver’s (“LJS”)-U.S.
and A&W All American Food Restaurants (“A&W”)-U.S., YUM Restaurants International (“YRI” or “International
Division”) and YUM Restaurants China (“China Division”). For financial reporting purposes, management considers the
four U.S. operating segments to be similar and, therefore, has aggregated them into a single reportable operating segment
(“U.S.”). The China Division includes mainland China (“China”), Thailand and KFC Taiwan, and the International
Division includes the remainder of our international operations.
Operating segment information for the years ended December 26, 2009, December 27, 2008 and December 29, 2007 for
the Company is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations
(“MD&A”) in Part II, Item 7, pages 24 through 58 and in the related Consolidated Financial Statements and footnotes in
Part II, Item 8, pages 59 through 116.
(c) Narrative Description of Business
General
YUM is the world’s largest quick service restaurant (“QSR”) company based on number of system units, with more than
37,000 units in more than 110 countries and territories. Through the five concepts of KFC, Pizza Hut, Taco Bell, LJS and
A&W (the “Concepts”), the Company develops, operates, franchises and licenses a worldwide system of restaurants
which prepare, package and sell a menu of competitively priced food items. Units are operated by a Concept or by
independent franchisees or licensees under the terms of franchise or license agreements. Franchisees can range in size
from individuals owning just one unit to large publicly traded companies. In addition, the Company owns non-controlling
interests in entities in China who operate similar to franchisees of KFC and a non-controlling interest in Little Sheep, a
Hot Pot concept headquartered in Hong Kong.
Form 10-K