Pizza Hut 2014 Annual Report Download - page 96

PART I
Business
YUM! Brands, Inc. (referred to herein as ‘‘YUM’’, the ‘‘Registrant’’ or and ‘‘our’’ are also used in the Form 10-K to refer to the Company.
the ‘‘Company’’), was incorporated under the laws of the state of North Throughout this Form 10-K, the terms ‘‘restaurants,’’ ‘‘stores’’ and
Carolina in 1997. The principal executive offices of YUM are located at ‘‘units’’ are used interchangeably. While YUM! Brands, Inc., referred
1441 Gardiner Lane, Louisville, Kentucky 40213, and the telephone to as the Company, does not directly own or operate any restaurants,
number at that location is [phone]. Our website address is throughout this document we may refer to restaurants as being
http://yum.com.Company-owned.
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’’
Financial Information about Operating Segments
As of December 27, 2014, YUM consists of five operating segments: quarter of 2014 we changed our management reporting structure to
align our global operations outside of China and India by brand. As a
YUM China (‘‘China’’ or ‘‘China Division’’) which includes all result, our YRI and United States reporting segments were combined,
operations in mainland China and we began reporting this information by three new reporting
segments: KFC Division, Pizza Hut Division and Taco Bell Division.
YUM India (‘‘India’’ or ‘‘India Division’’) which includes all operations
China and India remain separate reporting segments. This new
in India, Bangladesh, Nepal and Sri Lanka
structure is designed to drive greater global brand focus, enabling us
The KFC Division which includes all operations of the KFC concept to more effectively share know-how and accelerate growth. While our
outside of China Division and India Division consolidated results have not been impacted, we have restated our
comparable segment information for consistent presentation.
The Pizza Hut Division which includes all operations of the Pizza Hut
concept outside of China Division and India Division Operating segment information for the years ended December 27,
2014, December 28, 2013 and December 29, 2012 for the Company
The Taco Bell Division which includes all operations of the Taco Bell
is included in Management’s Discussion and Analysis of Financial
concept outside of India Division
Condition and Results of Operations (‘‘MD&A’’) in Part II, Item 7 and in
Prior to 2014, our reporting segments consisted of Yum Restaurants the related Consolidated Financial Statements in Part II, Item 8.
International (‘‘YRI’’), the United States, China and India. In the first
Narrative Description of Business
controlling interest in Little Sheep Group Limited (‘‘Little Sheep’’), a
General casual dining concept headquartered in Inner Mongolia, China. See
YUM has over 41,000 restaurants in more than 125 countries and Note 4 for details. The Company also owns non-controlling interests in
territories. Primarily through the three concepts of KFC, Pizza Hut and Chinese entities who operate in a manner similar to franchisees and a
Taco Bell (the ‘‘Concepts’’), the Company develops, operates, meat processing entity that supplies lamb to the Little Sheep
franchises and licenses a worldwide system of restaurants which business. The KFC Division comprises 14,197 units, operating in 115
prepare, package and sell a menu of competitively priced food items. countries outside China and India and recorded revenues of
Units are operated by a Concept or by independent franchisees or approximately $3.2 billion and Operating Profit of $708 million in 2014.
licensees under the terms of franchise or license agreements. The Pizza Hut Division has 13,602 units, operating in 87 countries
Franchisees can range in size from individuals owning just one outside China and India and recorded revenues of approximately
restaurant to large publicly traded companies. $1.1 billion and Operating Profit of $295 million in 2014. The Taco Bell
Division comprises 6,199 units, operating in 20 countries outside of
The China Division, based in Shanghai, China, comprises 6,715 units, India, and recorded revenues of approximately $1.9 billion and
primarily Company-owned KFCs and Pizza Huts. In 2014, the China Operating Profit of $480 million in 2014. The India Division, based in
Division recorded revenues of approximately $6.9 billion and Delhi, India comprises 833 units. In 2014, India recorded revenues of
Operating Profit of $713 million. On February 1, 2012, we acquired a $141 million and an Operating Loss of $9 million.
2YUM! BRANDS, INC. - 2014 Form 10-K
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Form 10-K