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  • 1. Appendix
  • 2. Definitions Capital Spending Includes capital spending, excludes acquisitions of restaurants from franchisees. China Division Includes mainland China, Thailand and KFC Taiwan businesses. General & Administrative (G&A) Costs Include general & administrative costs and franchise and license expense. International Division Countries & territories outside the U.S., excluding China Division, but including Hawaii. Local Currency Represents the percentage change excluding the impact of foreign currency translation. These amounts are calculated by translating current-year results at prior-year average exchange rates. We believe elimination of the foreign currency translation impact provides better year-to-year comparability of sales trends without the distortion of foreign currency fluctuations. Net Unit Growth Growth in system restaurants excluding the impact of acquisitions. Operating Margin Represents operating profit dollars as a percentage of revenue dollars. Reported Currency Represents the percentage change including the impact of foreign currency translation. All financial numbers in thi d fi il b i this document are in reported currency unless otherwise noted. t i td l th i td New Restaurant Openings Include unconsolidated affiliates (joint ventures), company-owned and franchise restaurants and exclude license restaurants.
  • 3. Definitions Special Items Include the GAAP income statement captions of Wrench litigation, AmeriServe and other charges (credits) from 1998-2005 and the cumulative effect of accounting change in 2003, net of tax. For the years 2008 through 2010, special items also include the gain on the sale of our minority interest in our Japan unconsolidated affiliate, U.S. refranchising (gain)/loss, charges relating to U.S. General and Administrative productivity initiatives and realignment of resources, as well as investments in our U.S. Brands. (The Company uses earnings before special items as a key performance measure of results of operations for purposes of evaluating performance internally. This non-GAAP measurement is not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the company believes EPS before special items provides additional information to investors to facilitate the comparison of past and present operations, excluding items that the Company does not believe are indicative of our ongoing operations due to their size and/or nature.) Same-Store-Sales Growth The estimated growth in sales of all restaurants that have been open one year or more regardless of ownership including unconsolidated affiliates (joint ventures), company-owned, franchise and license restaurants. System R t St Restaurants I l d unconsolidated affiliates (joint ventures), company-owned, franchise and license t Include lid t d ffili t (j i t t ) df hi d li restaurants. System-Sales Growth includes the results of all restaurants regardless of ownership including unconsolidated affiliates (joint ventures), company-owned, franchise and license restaurants. Sales of unconsolidated affiliates (joint ventures), franchise and license restaurants generate franchise and license fees for the company (typically at a rate of 4% to 6% of sales). Unconsolidated affiliates (joint ventures), franchise and license restaurant sales are not included in company sales we present on the Condensed Consolidated Statements of Income; however, the franchise fees previously defined are included in the companys revenues. We believe system-sales growth is useful to investors as a significant indicator of the overall strength of our business as it incorporates all our revenue drivers, company and franchise same-store sales as well as new-restaurant development. Total Units Include unconsolidated affiliates (joint ventures), company-owned, franchise, and license restaurants. Traditional Restaurants Includes unconsolidated affiliate (joint-venture), company-owned and franchise restaurants, but excludes license restaurants unless noted. (Note: all units referenced in the YRI section are Traditional Restaurants)
  • 4. Two Global Brands YRI System Restaurants By Geography Asia 36% Americas 22% 4,800+ Europe 6,900+ 22% Australia/ New Zealand Taco Bell/ 9% Long John Silvers/ Silver s/ Middle East/ A&W South Africa 500+ 11% Note: 2007 system restaurants.
  • 5. Highly Diversified Growth Business YRI Overview 02 07 02 07 # of % of System System Sales Countries Sales CAGR Middle East/Africa 24 12% 24% Europe 30 31% 15% Asia/Australia / 21 38% 8% The Americas 37 19% 8% Note: Includes foreign-currency exchange impact
  • 6. Taco Bell Key Driver of U.S. Performance U.S. Operating Profit 2008 F 1% Long John Silvers 8% & KFC A&W 59% Taco Bell 32% Pizza Hut
  • 7. New Restaurant Openings WORLDWIDE 1,785 1,707 1,600+ , 1,554 1,515 1,489 1,498 1,497 1,450 1,438 1,264 1,078 98 99 00 01 02 03 04 05 06 07 08 F 09 F Net Unit +1 +1 +1 +1 +1 +2 +1 +2 +2 +2 Growth % Note: Forecast rounded to nearest five.
  • 8. New Restaurant Openings CHINA DIVISION 550 506 500+ 409 396 357 302 297 266 167 138 128 98 99 00 01 02 03 04 05 06 07 08 F 09 F Net Unit +22 +15 +18 +12 +25 +17 +18 +19 +15 +17 +16 +12 Growth % Note: Forecast rounded to nearest five.
  • 9. New Restaurant Openings YRI DIVISION