Exhibit 99.1

Yum! Brands Inc. Reports Second-Quarter 2008 EPS of $0.45 per share, 16% Growth Excluding Special Items; Raises Full-Year EPS Growth Forecast to 12% from 11%, Excluding Special Items

LOUISVILLE, Ky.--(BUSINESS WIRE)--Yum! Brands Inc. (NYSE: YUM) today reported results for the second quarter ended June 14, 2008.

SECOND-QUARTER HIGHLIGHTS

• Very strong system-sales growth of +43% in mainland China and +15% in Yum! Restaurants International (YRI), fueled by broad-based unit development, same-store-sales growth, and favorable foreign currency translation.
• Worldwide same-store-sales growth of +4%, including +14% in mainland China, +4% in YRI, and +2% in the U.S. (all figures are system-wide).
• Operating profit growth of +38% in China Division and +18% in YRI, with a 12% decline in the U.S.
• Lower effective tax rate versus prior year.
• Increased quarterly dividend by 27% with our yield now about 2%.
• EPS results as outlined below:

FULL-YEAR OUTLOOK

The Company, for the second time, raised its full-year 2008 EPS forecast. We expect to generate $1.89 per share or 12% growth, a $0.02 increase from our previous guidance in our first-quarter earnings release. This is prior to full-year net gains from special items of up to $0.06 per share as previously announced in the Company’s full-year 2007 earnings release on February 4, 2008. Full-year reported EPS, including all items, is expected to total up to $1.95, or 16% growth.

David C. Novak, Chairman and CEO, said, “The power of the global Yum! portfolio is most evident even in difficult times, and I’m pleased to report second-quarter EPS growth of 16%, excluding special items. Based on this strong performance, we confidently raise our full-year EPS growth forecast to 12%. The strength of YUM’s global development machine, which will deliver over 1,600 new units in 2008, and the major progress we’re making on key sales growth initiatives gives us confidence we will be able to continue this type of consistent performance in 2009.

“Our strong second-quarter EPS growth of +16% was driven by exceptional profit growth in our international businesses and tax benefits recognized during the quarter. Our global system-sales growth of 11% was led by our China and YRI businesses as well as favorable foreign currency impact. Importantly, our international development pace is full speed ahead, as both our China and YRI businesses are on pace to match or exceed last year’s record performance. As a result, our international businesses delivered spectacular profit growth this quarter with China up 38% and YRI up 18%. In the U.S., our profit declined primarily due to the continuation of high commodity inflation. However, I am pleased to report our U.S. business continues to make top line progress generating second-quarter same-store-sales growth of +2%, the fourth consecutive quarter of positive growth.

“Shareholders should expect us to continue building consistent value by differentiating our portfolio of brands and driving profitable global expansion through our four key strategies that make us not your ordinary restaurant company: build leading brands in China in every significant category; drive aggressive international expansion and build strong brands everywhere; dramatically improve U.S. brand positions, consistency and returns; and drive industry-leading, long-term shareholder and franchisee value.”

CHINA DIVISION COMMENTS

• Mainland China delivered outstanding same-store-sales growth of 14%, lapping +7% from 2007.
• Mainland China traditional units were up 20% versus prior year with 95 new units opened during the quarter. Year-to-date, mainland China is exceeding the pace of last year’s record development which further strengthens our leadership position in the rapidly growing restaurant industry.
• Restaurant margin declined, as expected, largely due to continued high food cost inflation. Commodity inflation was approximately $16 million for the second quarter and $27 million year-to-date.
• Foreign currency conversion benefited operating profit by $8 million in the second quarter and $16 million year-to-date.
• China results were negatively impacted by unforeseen expenses related to the devastating earthquake in May and meaningful charitable contributions to support the recovery effort.

YRI DIVISION COMMENTS

• YRI achieved same-store-sales growth of 4%, lapping +5% from 2007.
• Traditional units were up 4% versus prior year with 160 new units opened in over 20 countries during the quarter of which 97% were opened by franchisees. Year-to-date, new-unit openings equal the record pace of 2007.
• Franchise fees, a key driver of our high-return business, grew by 22% and are expected to reach approximately $675 million for the full-year.
• The strength of foreign currencies versus the U.S. dollar benefited operating profit by $9 million for the quarter and $16 million year-to-date.
• The loss of a VAT exemption in our Mexico business adversely impacted restaurant margin percentage by more than one percentage point and operating profit by $9 million during the second quarter. As previously communicated, this loss is expected to negatively impact restaurant margin percentage by more than one percentage point and operating profit by more than $30 million for the full-year 2008.

U.S. BUSINESS COMMENTS

• The U.S. business delivered system same-store-sales growth of 2%, led by Company same-store-sales growth of 4%.
• Restaurant margin and operating profit declined largely due to significant commodity inflation, weak sales and profit results at KFC, and, as anticipated, lapping the 2007 insurance cost favorability of $18 million. Overall, commodity costs increased $30 million compared to prior year. For the full-year, we expect record commodity inflation of over $100 million.

CORPORATE AND UNALLOCATED G&A

• Corporate and unallocated G&A increased by $14 million or 27%, which was higher-than-expected, due to legal expenses, project timing, and incentive compensation accruals.

SHAREHOLDER PAYOUTS

During the second quarter of 2008, we purchased 0.3 million shares at an average price of $37.19, or a total of $11 million. Year-to-date, we have purchased 28 million shares at an average price of $35.41, or a total of $992 million.

In May, we increased our quarterly dividend to $0.19 per share, and as a result, we have nearly quadrupled our dividend since we initiated it just four years ago.

For 2008, we expect to return over $2 billion to shareholders through both dividends and significant share buybacks.

FULL-YEAR GUIDANCE UPDATE

Based on the overall strength and momentum of our business, we are raising our full-year EPS growth forecast to 12% or $1.89 per share excluding special items. Including special items, we are expecting up to $1.95 earnings per share, or 16% growth. For the full-year by business:

• In our China business, we expect full-year system-sales growth of at least 30% and profit growth of at least 27% including foreign currency benefit.
• For YRI, we expect full-year system-sales growth of 10% and profit growth of at least 11% including foreign currency benefit.
• We expect the U.S. business will generate same-store-sales growth of 3% and profit to decline by about 3%.
• Other updates of interest include:

• Please see the link below for further details.

PLEASE REFER TO THE COMPLETE FULL-YEAR 2008 GUIDANCE UPDATE LOCATED ON OUR WEBSITE AT WWW.YUM.COM/INVESTORS.

CONFERENCE CALL

Yum! Brands Inc. will host a conference call to review the company’s financial performance and strategies at 9:15 a.m. ET Thursday, July 17, 2008. For U.S. callers, the number is 877/815-2029. For international callers, the number is 706/645-9271.

The call will be available for playback beginning at noon Eastern Time Thursday, July 17, through midnight Friday, July 25. To access the playback, dial 800/642-1687 in the United States and 706/645-9291 internationally. The playback pass code is 52074397.

Online Access: The call and replay can be accessed via Yum! Brands’ investor website, www.yum.com/investors . Select “Management Presentations” from the left-hand menu. A podcast will be available within 24 hours of the end of the call.

ADDITIONAL INFORMATION ONLINE

Second-quarter restaurant-count details, definitions of terms, and segment-results reconciliation are available at www.yum.com/investors . Select “Earnings Releases” from the left-hand menu.

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include those identified by such words as may, will, expect, project, anticipate, believe, plan and other similar terminology. These “forward-looking” statements reflect management’s current expectations regarding future events and operating and financial performance and are based on currently available data. However, actual results are subject to future events and uncertainties, which could cause actual results to differ from those projected in this announcement. Accordingly, you are cautioned not to place undue reliance on forward-looking statements. Factors that can cause actual results to differ materially include, but are not limited to, changes in global and local business, economic and political conditions in the countries and territories where Yum! Brands operates, including the effects of war and terrorist activities; changes in currency exchange and interest rates; changes in commodity, labor and other operating costs; changes in competition in the food industry, consumer preferences or perceptions concerning the products of the company and/or our competitors, spending patterns and demographic trends; the impact that any widespread illness or general health concern may have on our business and the economy of the countries in which we operate; the effectiveness of our operating initiatives and marketing, advertising and promotional efforts; new-product and concept development by Yum! Brands and other food-industry competitors; the success of our strategies for refranchising and international development and operations; the ongoing business viability of our franchise and license operators; our ability to secure distribution to our restaurants at competitive rates and to ensure adequate supplies of restaurant products and equipment in our stores; unexpected disruptions in our supply chain; publicity that may impact our business and/or industry; severe weather conditions; effects and outcomes of pending or future legal claims involving the company; changes in effective tax rates; our actuarially determined casualty loss estimates; new legislation and governmental regulations or changes in legislation and regulations and the consequent impact on our business; and changes in accounting policies and practices. Further information about factors that could affect Yum! Brands’ financial and other results are included in the company’s Forms 10-Q and 10-K, filed with the Securities and Exchange Commission.

Yum! Brands, Inc., based in Louisville, Kentucky, is the world’s largest restaurant company in terms of system restaurants, with more than 35,000 restaurants in over 100 countries and territories. The company is ranked #253 on the Fortune 500 List, with revenues in excess of $10 billion in 2007. Four of the company’s restaurant brands – KFC, Pizza Hut, Taco Bell and Long John Silver’s – are the global leaders of the chicken, pizza, Mexican-style food and quick-service seafood categories, respectively. Outside the United States, the Yum! Brands system opened about four new restaurants each day of the year, making it the largest retail developer in the world. The company has consistently been recognized for its reward and recognition culture, diversity leadership, community giving, and consistent shareholder returns. Since its spin-off as a publicly-traded company in 1997, its stock has more than quadrupled. Last year, the company launched the world’s largest private sector hunger relief effort, in partnership with the United Nations World Food Programme and other hunger relief agencies. This effort helped save over 1.6 million people from starvation in remote corners of the world, where hunger is most prevalent.

CONTACT:
Yum! Brands Inc.
Analysts:
Tim Jerzyk, 888-298-6986
Senior Vice President, Investor Relations/Treasurer
or
Bruce Bishop, 888-298-6986
Director Investor Relations
or
Media:
Amy Sherwood, 502-874-8200
Vice President Public Relations

Exhibit 99.2

July 16, 2008

Yum! Brands Full-Year 2008 Detailed Guidance Update

Note: Below are further updates to guidance originally provided December 6, 2007. This is the last update for the year unless there is a significant change to our outlook. 

The Company expects . . .

Full-year 2008 EPS growth of 12% or $1.89 per share, excluding special items. Including special items, the Company expects up to $1.95 earnings per share, or 16% EPS growth.

Note: All preceding guidance is in “as reported” terms unless otherwise noted as local-currency basis.

ADDITIONAL DETAILS OF OUR 2008 ANNUAL GUIDANCE IS AVAILABLE ONLINE

At the following URL: http://investors.yum.com/phoenix.zhtml?c=117941&p=irol-newsEarnings. The company will provide additional annual guidance for key items only when there is a material change to the full-year expectations previously noted. Otherwise these expectations for full-year 2008 remain in effect.

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This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include those identified by such words as may, will, expect, project, anticipate, believe, plan and other similar terminology. These “forward-looking” statements reflect management’s current expectations regarding future events and operating and financial performance and are based on currently available data. However, actual results are subject to future events and uncertainties, which could cause actual results to differ from those projected in this announcement. Accordingly, you are cautioned not to place undue reliance on forward-looking statements. Factors that can cause actual results to differ materially include, but are not limited to, changes in global and local business, economic and political conditions in the countries and territories where Yum! Brands operates, including the effects of war and terrorist activities; changes in currency exchange and interest rates; changes in commodity, labor and other operating costs; changes in competition in the food industry, consumer preferences or perceptions concerning the products of the company and/or our competitors, spending patterns and demographic trends; the impact that any widespread illness or general health concern may have on our business and the economy of the countries in which we operate; the effectiveness of our operating initiatives and marketing, advertising and promotional efforts; new-product and concept development by Yum! Brands and other food-industry competitors; the success of our strategies for refranchising and international development and operations; the ongoing business viability of our franchise and license operators; our ability to secure distribution to our restaurants at competitive rates and to ensure adequate supplies of restaurant products and equipment in our stores; unexpected disruptions in our supply chain; publicity that may impact our business and/or industry; severe weather conditions; effects and outcomes of pending or future legal claims involving the company; changes in effective tax rates; our actuarially determined casualty loss estimates; new legislation and governmental regulations or changes in legislation and regulations and the consequent impact on our business; and changes in accounting policies and practices. Further information about factors that could affect Yum! Brands’ financial and other results are included in the company’s Forms 10-Q and 10-K, filed with the Securities and Exchange Commission.

Yum! Brands, Inc., based in Louisville, Kentucky, is the world’s largest restaurant company in terms of system restaurants, with more than 35,000 restaurants in over 100 countries and territories. The company is ranked #253 on the Fortune 500 List, with revenues in excess of $10 billion in 2007. Four of the company’s restaurant brands – KFC, Pizza Hut, Taco Bell and Long John Silver’s – are the global leaders of the chicken, pizza, Mexican-style food and quick-service seafood categories, respectively. Outside the United States, the Yum! Brands system opened about four new restaurants each day of the year, making it the largest retail developer in the world. The company has consistently been recognized for its reward and recognition culture, diversity leadership, community giving, and consistent shareholder returns. Since its spin-off as a publicly-traded company in 1997, its stock has more than quadrupled. Last year, the company launched the world’s largest private sector hunger relief effort, in partnership with the United Nations World Food Programme and other hunger relief agencies. This effort helped save over 1.6 million people from starvation in remote corners of the world, where hunger is most prevalent.