UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
___________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

April 12, 2017

Commission file number 1-13163
________________________
YUM! BRANDS, INC.
 (Exact name of registrant as specified in its charter)

 
North Carolina
 
13-3951308
 
(State or other jurisdiction of
 
(I.R.S. Employer
 
incorporation or organization)
 
Identification No.)
 
 
 
 
 
1441 Gardiner Lane, Louisville, Kentucky
 
40213
 
(Address of principal executive offices)
 
(Zip Code)
 
 
 
 
Registrant's telephone number, including area code:  (502) 874-8300
 
Former name or former address, if changed since last report: N/A

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 





Section 2 - Financial Information

Item 2.02 Results of Operations and Financial Condition

As previously disclosed, effective with the beginning of fiscal 2017 YUM changed its fiscal year from a year ending on the last Saturday of December to a year beginning on January 1 and ending December 31 of each year. Because the new 2017 fiscal year commenced with the end of our 2016 fiscal year ended December 31, 2016, there was no transition period in connection with the change in the fiscal year.

In connection with the new fiscal year, the Company has moved from a 52-week periodic fiscal calendar with three 12-week interim quarters and a 16-week fourth quarter that requires adding a 53rd week every five or six years, to a monthly reporting calendar with each quarter comprised of three months. Our U.S. subsidiaries will continue to report fiscal calendars ending in late December that include three 12-week interim quarters and a 16-week fourth quarter in fiscal years with 52 weeks and a 17-week fourth quarter in fiscal years with 53 weeks. Our next fiscal year with 53 weeks will occur in 2019.

The change in the Company’s fiscal year was made primarily to accommodate the removal of reporting lags from our international subsidiary fiscal calendars, which will significantly improve the alignment of our global reporting calendars. As a result of removing these reporting lags each international subsidiary will now operate either on a monthly calendar consistent with the Company’s new calendar or on a periodic calendar consistent with the calendars of our U.S. subsidiaries. We have not restated amounts to reflect any calendar shift for the financial results of our China business prior to its separation into an independent, publicly-traded company on October 31, 2016 which have been reflected in Discontinued Operations.

As a result of this change we are required to restate our financial results for the historic periods presented. This Form 8-K provides a summary of certain consolidated and segment financial results for 2016 and 2015 restated as if they had been reported under our new calendar.

Additionally, these restated results reflect the impact of Accounting Standards Update No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post retirement Benefit Cost , which we adopted in the first quarter of 2017 on a retrospective basis. For 2016, the adoption of this standard had no effect on previously reported Net Income but resulted in the reclassification of non-service cost components of pension and post-retirement benefit expense of $32 million from General and administrative expenses to Other pension income (expense). This amount comprised a $3 million credit allocated to our Brand Divisions and a $35 million charge that was not allocated to any of our segment operating results (of which $26 million was classified within Special Items). This restated information is attached hereto as Exhibit 99.1, which is being furnished pursuant to Item 2.02, Results of Operation and Financial Condition.


Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(c) Exhibits
 
99.1 Restated Consolidated and Segment Financial Results








SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 
 
 
YUM! BRANDS, INC.
 
 
 
 
(Registrant)
 



Date:
April 12, 2017
 
/s/ David E. Russell
 
 
 
 
Senior Vice President, Finance and Corporate Controller
 
 
 
 
 
 







YUM! Brands, Inc.
Recast Consolidated Summary of Results
(amounts in millions)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
2016
 
2015
 
 
Quarter Ended March 31
Quarter Ended June 30
Quarter Ended September 30
Quarter Ended December 31
Year Ended December 31
 
Year Ended December 31
Revenues
 
 
 
 
 
 
 
 
Company sales
 
$
953

$
1,006

$
992

$
1,238

$
4,189

 
$
4,336

Franchise and license fees and income
490

503

526

648

2,167

 
2,082

Total revenues
 
1,443

1,509

1,518

1,886

6,356

 
6,418

Costs and Expenses, Net
 
 
 
 
 
 
 
Company restaurant expenses
 
 
 
 
 
 
 
Food and paper
287

307

303

370

1,267

 
1,340

Payroll and employee benefits
257

263

260

326

1,106

 
1,125

Occupancy and other operating expenses
261

269

268

318

1,116

 
1,162

Company restaurant expenses
805

839

831

1,014

3,489

 
3,627

General and administrative expenses
243

254

270

362

1,129

 
1,058

Franchise and license expenses
51

54

40

56

201

 
240

Closures and impairment (income) expenses
2

7

1

5

15

 
16

Refranchising (gain) loss
—

(54
)
(21
)
(88
)
(163
)
 
23

Other (income) expense
(7
)
(6
)
(1
)
17

3

 
20

Total costs and expenses, net
1,094

1,094

1,120

1,366

4,674

 
4,984

 
 
 
 
 
 
 
 
 
Operating Profit
349

415

398

520

1,682

 
1,434

 
 
 
 
 
 
 
 
 
Interest expense, net
42

51

98

114

305

 
141

Other pension (income) expense
(1
)
—

(1
)
34

32

 
40

 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
308

364

301

372

1,345

 
1,253

 
 
 
 
 
 
 
 
 
Income tax provision
82

98

83

64

327

 
327

Income from continuing operations
226

266

218

308

1,018

 
926

Income from discontinued operations, net of tax
138

70

422

(5
)
625

 
357

Net Income
 
$
364

$
336

$
640

$
303

$
1,643

 
$
1,283

 
 
 
 
 
 
 
 
 
Basic Earnings per Common Share from continuing operations
$
0.55

$
0.65

$
0.56

$
0.84

$
2.58

 
$
2.13

Basic Earnings per Common Share from discontinued operations
0.33

0.17

1.09

(0.01
)
1.59

 
0.82

Basic earnings per Common Share
$
0.88

$
0.82

$
1.65

$
0.83

$
4.17

 
$
2.95

Average basic shares outstanding
415

408

388

366

394

 
435

 
 
 
 
 
 
 
 
 
Diluted Earnings per Common Share from continuing operations
$
0.54

$
0.64

$
0.55

$
0.83

$
2.54

 
$
2.09

Diluted Earnings per Common Share from discontinued operations
0.33

0.17

1.07

(0.01
)
1.56

 
0.81

Diluted earnings per Common Share
$
0.87

$
0.81

$
1.62

$
0.82

$
4.10

 
$
2.90

Average diluted shares outstanding
421

415

395

372

400

 
443






YUM! Brands, Inc.
Recast Annual Segment Operating Results
(amounts in millions)
(unaudited)
 
 
 
 
 
 
 
 
 
 
Year Ended 12/31/16
KFC
 
Pizza Hut
 
Taco Bell
 
Corporate and Unallocated
 
Consolidated
Company sales
$
2,156

 
$
493

 
$
1,540

 
$
—

 
4,189

Franchise and license fees and income
1,069

 
615

 
485

 
(2
)
 
2,167

Total revenues
3,225

 
1,108

 
2,025

 
(2
)
 
6,356

 
 
 
 
 
 
 
 
 
 
Company restaurant expenses
 
 
 
 
 
 
 
 
 
Food and paper
733

 
137

 
397

 
—

 
1,267

Payroll and employee benefits
507

 
156

 
443

 
—

 
1,106

Occupancy and other operating expenses
599

 
159

 
358

 
—

 
1,116

Company restaurant expenses
1,839

 
452

 
1,198

 
—

 
3,489

 
 
 
 
 
 
 
 
 
 
General and administrative expenses
396

 
242

 
211

 
280

 
1,129

Franchise and license expenses
108

 
48

 
21

 
24

 
201

Closures and impairment (income) expenses
11

 
1

 
3

 
—

 
15

Refranchising (gain) loss
—

 
—

 
—

 
(163
)
 
(163
)
Other (income) expense
—

 
(2
)
 
(3
)
 
8

 
3

Total costs and expenses, net
2,354

 
741

 
1,430

 
149

 
4,674

 
 
 
 
 
 
 
 
 
 
Operating Profit (loss)
$
871

 
$
367

 
$
595

 
$
(151
)
 
$
1,682

 
 
 
 
 
 
 
 
 
 
Year Ended 12/31/15
KFC
 
Pizza Hut
 
Taco Bell
 
Corporate and Unallocated
 
Consolidated
Company sales
$
2,191

 
$
601

 
$
1,544

 
$
—

 
$
4,336

Franchise and license fees and income
1,031

 
604

 
447

 
—

 
2,082

Total revenues
3,222

 
1,205

 
1,991

 
—

 
6,418

 
 
 
 
 
 
 
 
 
 
Company restaurant expenses
 
 
 
 
 
 
 
 
 
Food and paper
751

 
167

 
422

 
—

 
1,340

Payroll and employee benefits
511

 
187

 
427

 
—

 
1,125

Occupancy and other operating expenses
622

 
189

 
351

 
—

 
1,162

Company restaurant expenses
1,884

 
543

 
1,200

 
—

 
3,627

 
 
 
 
 
 
 
 
 
 
General and administrative expenses
395

 
262

 
221

 
180

 
1,058

Franchise and license expenses
101

 
45

 
23

 
71

 
240

Closures and impairment (income) expenses
9

 
4

 
3

 
—

 
16

Refranchising (gain) loss
—

 
—

 
—

 
23

 
23

Other (income) expense
(2
)
 
—

 
(2
)
 
24

 
20

Total costs and expenses, net
2,387

 
854

 
1,445

 
298

 
4,984

 
 
 
 
 
 
 
 
 
 
Operating Profit (loss)
$
835

 
$
351

 
$
546

 
$
(298
)
 
$
1,434

 
 
 
 
 
 
 
 
 
 





YUM! Brands, Inc.
Recast Quarterly Segment Operating Results
(amounts in millions)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended 3/31/16
KFC
 
Pizza Hut
 
Taco Bell
 
Corporate and Unallocated
 
Consolidated
Company sales
$
493

 
$
135

 
$
325

 
$
—

 
$
953

Franchise and license fees and income
243

 
146

 
101

 
—

 
490

Total revenues
736

 
281

 
426

 
—

 
1,443

 
 
 
 
 
 
 
 
 
 
 
Company restaurant expenses
 
 
 
 
 
 
 
 
 
 
Food and paper
167

 
37

 
83

 
—

 
287

 
Payroll and employee benefits
118

 
42

 
97

 
—

 
257

 
Occupancy and other operating expenses
142

 
42

 
77

 
—

 
261

Company restaurant expenses
427

 
121

 
257

 
—

 
805

 
 
 
 
 
 
 
 
 
 
 
General and administrative expenses
94

 
59

 
47

 
43

 
243

Franchise and license expenses
28

 
10

 
4

 
9

 
51

Closures and impairment (income) expenses
2

 
—

 
—

 
—

 
2

Refranchising (gain) loss
—

 
—

 
—

 
—

 
—

Other (income) expense
—

 
—

 
—

 
(7
)
 
(7
)
Total costs and expenses, net
551

 
190

 
308

 
45

 
1,094

 
 
 
 
 
 
 
 
 
 
 
Operating Profit (loss)
$
185

 
$
91

 
$
118

 
$
(45
)
 
$
349

 
 
 
 
 
 
 
 
 
 
 
Quarter Ended 6/30/16
KFC
 
Pizza Hut
 
Taco Bell
 
Corporate and Unallocated
 
Consolidated
Company sales
$
528

 
$
125

 
$
353

 
$
—

 
$
1,006

Franchise and license fees and income
251

 
142

 
111

 
(1
)
 
503

Total revenues
779

 
267

 
464

 
(1
)
 
1,509

 
 
 
 
 
 
 
 
 
 
 
Company restaurant expenses
 
 
 
 
 
 
 
 
 
 
Food and paper
181

 
35

 
91

 
—

 
307

 
Payroll and employee benefits
124

 
39

 
100

 
—

 
263

 
Occupancy and other operating expenses
146

 
40

 
83

 
—

 
269

Company restaurant expenses
451

 
114

 
274

 
—

 
839

 
 
 
 
 
 
 
 
 
 
 
General and administrative expenses
93

 
56

 
46

 
59

 
254

Franchise and license expenses
28

 
14

 
5

 
7

 
54

Closures and impairment (income) expenses
4

 
2

 
1

 
—

 
7

Refranchising (gain) loss
—

 
—

 
—

 
(54
)
 
(54
)
Other (income) expense
—

 
—

 
(1
)
 
(5
)
 
(6
)
Total costs and expenses, net
576

 
186

 
325

 
7

 
1,094

 
 
 
 
 
 
 
 
 
 
 
Operating Profit (loss)
$
203

 
$
81

 
$
139

 
$
(8
)
 
$
415

 
 
 
 
 
 
 
 
 
 
 





YUM! Brands, Inc.
Recast Quarterly Segment Operating Results
(amounts in millions)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended 9/30/16
KFC
 
Pizza Hut
 
Taco Bell
 
Corporate and Unallocated
 
Consolidated
Company sales
$
520

 
$
106

 
$
366

 
$
—

 
$
992

Franchise and license fees and income
267

 
145

 
115

 
(1
)
 
526

Total revenues
787

 
251

 
481

 
(1
)
 
1,518

 
 
 
 
 
 
 
 
 
 
 
Company restaurant expenses
 
 
 
 
 
 
 
 
 
 
Food and paper
178

 
29

 
96

 
—

 
303

 
Payroll and employee benefits
120

 
35

 
105

 
—

 
260

 
Occupancy and other operating expenses
144

 
38

 
86

 
—

 
268

Company restaurant expenses
442

 
102

 
287

 
—

 
831

 
 
 
 
 
 
 
 
 
 
 
General and administrative expenses
89

 
55

 
48

 
78

 
270

Franchise and license expenses
26

 
11

 
4

 
(1
)
 
40

Closures and impairment (income) expenses
—

 
1

 
—

 
—

 
1

Refranchising (gain) loss
—

 
—

 
—

 
(21
)
 
(21
)
Other (income) expense
—

 
(2
)
 
(1
)
 
2

 
(1
)
Total costs and expenses, net
557

 
167

 
338

 
58

 
1,120

 
 
 
 
 
 
 
 
 
 
 
Operating Profit (loss)
$
230

 
$
84

 
$
143

 
$
(59
)
 
$
398

 
 
 
 
 
 
 
 
 
 
 
Quarter Ended 12/31/16
KFC
 
Pizza Hut
 
Taco Bell
 
Corporate and Unallocated
 
Consolidated
Company sales
$
615

 
$
127

 
$
496

 
$
—

 
$
1,238

Franchise and license fees and income
308

 
182

 
158

 
—

 
648

Total revenues
923

 
309

 
654

 
—

 
1,886

 
 
 
 
 
 
 
 
 
 
 
Company restaurant expenses
 
 
 
 
 
 
 
 
 
 
Food and paper
207

 
36

 
127

 
—

 
370

 
Payroll and employee benefits
145

 
40

 
141

 
—

 
326

 
Occupancy and other operating expenses
167

 
39

 
112

 
—

 
318

Company restaurant expenses
519

 
115

 
380

 
—

 
1,014

 
 
 
 
 
 
 
 
 
 
 
General and administrative expenses
120

 
72

 
70

 
100

 
362

Franchise and license expenses
26

 
13

 
8

 
9

 
56

Closures and impairment (income) expenses
5

 
(2
)
 
2

 
—

 
5

Refranchising (gain) loss
—

 
—

 
—

 
(88
)
 
(88
)
Other (income) expense
—

 
—

 
(1
)
 
18

 
17

Total costs and expenses, net
670

 
198

 
459

 
39

 
1,366

 
 
 
 
 
 
 
 
 
 
 
Operating Profit (loss)
$
253

 
$
111

 
$
195

 
$
(39
)
 
$
520

 
 
 
 
 
 
 
 
 
 
 





YUM! Brands, Inc.
Reconciliation of Non-GAAP Measurements to GAAP Results
(amounts in millions)
(unaudited)
 
 
 
 
 
 
 
 
 
Note: Consult our filings with the Securities and Exchange Commission for additional details related to our use of the Non-GAAP measures of Diluted EPS from Continuing Operations before Special Items and Core Operating Profit.
 
 
 
 
 
 
 
 
 
 
 
2016
 
2015
 
 
Quarter Ended March 31
Quarter Ended June 30
Quarter Ended September 30
Quarter Ended December 31
Year Ended December 31
 
Year Ended December 31
Detail of Special Items
 
 
 
 
 
 
 
Refranchising initiatives
$
—

$
54

$
21

$
88

$
163

 
$
(19
)
YUM's Strategic Transformation Initiatives
—

(4
)
(30
)
(33
)
(67
)
 
—

Non-cash charges associated with share-based compensation
—

—

—

(30
)
(30
)
 
—

Costs associated with KFC U.S. Acceleration Agreement
(9
)
(8
)
—

(9
)
(26
)
 
(72
)
Other Special Items Income (Expense)
—

(2
)
(1
)
(2
)
(5
)
 
—

Special Items Income (Expense) - Operating Profit
(9
)
40

(10
)
14

35

 
(91
)
Settlement charges associated with pension deferred vested project and Other pension charges
—

—

—

(26
)
(26
)
 
—

Tax Benefit (Expense) on Special Items
2

(7
)
5

24

24

 
(4
)
Special Items Income (Expense), net of tax - Continuing Operations
$
(7
)
$
33

$
(5
)
$
12

$
33

 
$
(95
)
Average diluted shares outstanding
421

415

395

372

400

 
443

Special Items diluted EPS
$
(0.01
)
$
0.08

$
(0.01
)
$
0.03

$
0.08

 
$
(0.22
)
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP Operating Profit to Core Operating Profit
 
 
 
 
 
 
 
Consolidated
 
 
 
 
 
 
 
 
GAAP Operating Profit
$
349

$
415

$
398

$
520

$
1,682

 
$
1,434

Special Items Income (Expense) - Operating Profit
(9
)
40

(10
)
14

35

 
(91
)
Foreign Currency Impact on Reported Operating Profit
(15
)
(13
)
(9
)
(10
)
(47
)
 
 N/A

Core Operating Profit
$
373

$
388

$
417

$
516

$
1,694

 
$
1,525

 
 
 
 
 
 
 
 
 
KFC Division
 
 
 
 
 
 
 
 
GAAP Operating Profit
$
185

203

230

253

871

 
835

Foreign Currency Impact on Reported Operating Profit
(13
)
(12
)
(8
)
(8
)
(41
)
 
 N/A

Core Operating Profit
$
198

$
215

$
238

$
261

$
912

 
$
835

 
 
 
 
 
 
 
 
 
Pizza Hut Division
 
 
 
 
 
 
 
GAAP Operating Profit
$
91

$
81

$
84

$
111

$
367

 
$
351

Foreign Currency Impact on Reported Operating Profit
(2
)
(1
)
(1
)
(3
)
(7
)
 
 N/A

Core Operating Profit
$
93

$
82

$
85

$
114

$
374

 
$
351

 
 
 
 
 
 
 
 
 
Taco Bell Division
 
 
 
 
 
 
 
GAAP Operating Profit
$
118

$
139

$
143

$
195

$
595

 
$
546

Foreign Currency Impact on Reported Operating Profit
—

—

—

1

1

 
 N/A

Core Operating Profit
$
118

$
139

$
143

$
194

$
594

 
$
546

 
 
 
 
 
 
 
 
 
Reconciliation of Diluted EPS from Continuing Operations to Diluted EPS from Continuing Operations Before Special Items
 
 
 
 
 
 
 
Diluted EPS from Continuing Operations
$
0.54

$
0.64

$
0.55

$
0.83

$
2.54

 
$
2.09

Special Items EPS
(0.01
)
0.08

(0.01
)
0.03

0.08

 
(0.22
)
Diluted EPS from Continuing Operations before Special Items
$
0.55

$
0.56

$
0.56

$
0.80

$
2.46

 
$
2.31






YUM! Brands, Inc.
 
Recast Annual Division System Sales Growth
 
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended 12/31/16
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
System sales, reported
3
%
 
0
%
 
6
%
 
3
%
System sales, excluding FX
7
%
 
2
%
 
6
%
 
5
%
System sales, excluding FX and 53rd week
6
%
 
1
%
 
5
%
 
4
%
Same store sales growth (decline)
2
%
 
-2
%
 
2
%
 
1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended 12/31/15
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
System sales, reported
-3
%
 
-1
%
 
8
%
 
0
%
System sales, excluding FX
5
%
 
3
%
 
8
%
 
5
%
Same store sales growth (decline)
1
%
 
0
%
 
5
%
 
2
%
 
 
 
 
 
 
 
 
 
 
 
 





YUM! Brands, Inc.
 
Recast Quarterly Division System Sales Growth
 
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended 3/31/16
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
System sales, reported
1
%
 
0
%
 
4
%
 
1
%
System sales, excluding FX
6
%
 
3
%
 
4
%
 
5
%
Same store sales growth (decline)
3
%
 
-1
%
 
1
%
 
2
%
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended 6/30/16
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
System sales, reported
2
%
 
0
%
 
2
%
 
1
%
System sales, excluding FX
6
%
 
2
%
 
2
%
 
4
%
Same store sales growth (decline)
3
%
 
-1
%
 
-1
%
 
1
%
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended 9/30/16
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
System sales, reported
2
%
 
0
%
 
5
%
 
2
%
System sales, excluding FX
5
%
 
1
%
 
5
%
 
4
%
Same store sales growth (decline)
2
%
 
-1
%
 
3
%
 
1
%
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended 12/31/16
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
System sales, reported
6
%
 
1
%
 
12
%
 
6
%
System sales, excluding FX
9
%
 
4
%
 
12
%
 
8
%
System sales, excluding FX and 53rd week
6
%
 
0
%
 
6
%
 
4
%
Same store sales growth (decline)
2
%
 
-3
%
 
3
%
 
1
%
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended 3/31/15
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
System sales, reported
-3
%
 
1
%
 
9
%
 
0
%
System sales, excluding FX
2
%
 
3
%
 
9
%
 
4
%
Same store sales growth (decline)
-1
%
 
-1
%
 
6
%
 
0
%
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended 6/30/15
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
System sales, reported
-6
%
 
-1
%
 
9
%
 
-2
%
System sales, excluding FX
2
%
 
3
%
 
9
%
 
3
%
Same store sales growth (decline)
-2
%
 
-1
%
 
6
%
 
0
%
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended 9/30/15
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
System sales, reported
-1
%
 
0
%
 
7
%
 
1
%
System sales, excluding FX
9
%
 
5
%
 
7
%
 
7
%
Same store sales growth (decline)
5
%
 
1
%
 
4
%
 
4
%
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended 12/31/15
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
System sales, reported
-4
%
 
-2
%
 
7
%
 
-1
%
System sales, excluding FX
6
%
 
2
%
 
7
%
 
5
%
Same store sales growth (decline)
3
%
 
0
%
 
4
%
 
2
%
 
 
 
 
 
 
 
 
 
 
 
 





YUM! Brands, Inc.
Recast Division Unit Activity
(unaudited)
 
 
 
 
 
 
 
KFC
 
Franchise
 
Company-owned
 
Total
Year ended 12/31/2014
 
17,895

 
1,523

 
19,418

 
 
 
 
 
 
 
Net Unit Change
 
 
 
 
 
 
Q1 2015
 
85

 
7

 
92

Q2 2015
 
43

 
16

 
59

Q3 2015
 
92

 
13

 
105

Q4 2015
 
358

 
(46
)
 
312

 
 
 
 
 
 
 
Year Ended 12/31/2015
 
18,473

 
1,513

 
19,986

 
 
 
 
 
 
 
Net Unit Change
 
 
 
 
 
 
Q1 2016
 
16

 
(14
)
 
2

Q2 2016
 
132

 
5

 
137

Q3 2016
 
157

 
2

 
159

Q4 2016
 
458

 
(99
)
 
359

 
 
 
 
 
 
 
Year ended 12/31/2016
 
19,236

 
1,407

 
20,643

 
 
 
 
 
 
 
Pizza Hut
 
Franchise
 
Company-owned
 
Total
Year ended 12/31/2014
 
14,787

 
823

 
15,610

 
 
 
 
 
 
 
Net Unit Change
 
 
 
 
 
 
Q1 2015
 
89

 
(36
)
 
53

Q2 2015
 
40

 
10

 
50

Q3 2015
 
153

 
(48
)
 
105

Q4 2015
 
265

 
1

 
266

 
 
 
 
 
 
 
Year Ended 12/31/2015
 
15,334

 
750

 
16,084

 
 
 
 
 
 
 
Net Unit Change
 
 
 
 
 
 
Q1 2016
 
5

 
(1
)
 
4

Q2 2016
 
155

 
(65
)
 
90

Q3 2016
 
84

 
(47
)
 
37

Q4 2016
 
293

 
(88
)
 
205

 
 
 
 
 
 
 
Year ended 12/31/2016
 
15,871

 
549

 
16,420

 
 
 
 
 
 
 
Taco Bell
 
Franchise
 
Company-owned
 
Total
Year ended 12/31/2014
 
5,277

 
933

 
6,210

 
 
 
 
 
 
 
Net Unit Change
 
 
 
 
 
 
Q1 2015
 
32

 
(2
)
 
30

Q2 2015
 
24

 
2

 
26

Q3 2015
 
67

 
(10
)
 
57

Q4 2015
 
113

 
(23
)
 
90

 
 
 
 
 
 
 
Year Ended 12/31/2015
 
5,513

 
900

 
6,413

 
 
 
 
 
 
 
Net Unit Change
 
 
 
 
 
 
Q1 2016
 
20

 
3

 
23

Q2 2016
 
24

 
6

 
30

Q3 2016
 
57

 
(8
)
 
49

Q4 2016
 
113

 
(16
)
 
97

 
 
 
 
 
 
 
Year ended 12/31/2016
 
5,727

 
885

 
6,612