Yum!

Brands

SUBMITTED TOMS. ANU BANSAL FACULTY, MAIMS

SUBMITTED BYMEHAK

CHAPTER 1

INTRODUCTION

1.1 TITLE: Financial Analysis OF Yum Brands Inc in year 2011-2012. 1.2 ORGANIZATION: Yum! Brands, Inc. (NYSE Y!"# $r Yum!. 1.3 OBJECTI
E:

THE !RIMARY OBJECTI

1. %O S%!&Y %'E ()OFI%ABI*I%Y )A%IOS AN& FINAN+IA* S%A%!S OF Y!" ! B)AN&S 2. %O &O %'E +O"(E%I%I,E ANA*YSIS FO) Y!" B)AN&S THE SECONDARY OBJECTI
E

Find c$m-any.s e/-ansi$n -lans in Asia--aci0ic 1i23 s-ecial re0erence 2$ India 1." RESEARCH METHODOLOGY: 1.3.1 RESEARCH DESIGN )esearc3 2y-e is descri-2i4e usin5 sec$ndary da2a. 1.3.2 DATA COLLECTION &a2a 1as c$llec2ed 0r$m 6$$7s, in2erne2, ma5a8ines and ne1s-a-ers. 1.3.3 LIMITATIONS SO"E
FI9!)ES "I9'% NO% BE A++!)A%E SIN+E &A%A !SE& IS SE+ON&A)Y

IN NA%!)E.

"IS"A%+' OF !NI%S OF "EAS!)E.

IN%E)NA*

&A%A "AY BE "AIN%AINE& A% A *E,E* OF A99)E9A%ION %OO

E:%)E"E BE !SEF!* AS IN(!%S

+ENS!S

9EO9)A('I+ A)EAS NO% %'E SA"E AS 9EO9)A('I+ A)EAS OF

IN%E)ES% %O %'E +O"(ANY

- OF%EN %OO A99)E9A%E&.

"IS"A%+' BE%;EEN (!)(OSE +O**E+%E& AN& (!)(OSE !SE&.

)E+O)&S "AY NO% BE ;E** "AIN%AINE& O) O)9ANI<E&.

%'E

=!A*I%Y OF IN%E)NA* SE+ON&A)Y &A%A "AY BE E:A99E)A%E& O)

BIASE&.

Y#$% B&'()*, I(+. (NYSE Y!"# $r Y#$% is a F$r2une >00 c$r-$ra2i$n. Yum! $-era2es $r licenses %ac$ Bell, ?F+, (i88a 'u2, ;in5 s2ree2, and *$n5 @$3n Sil4erAs res2auran2s 1$rld1ide, and AB; )es2auran2s (e/cludin5 AB; in +anada#.

Based in *$uis4ille, ?en2uc7y, i2 is 23e 1$rldAs lar5es2 0as2 0$$d res2auran2 c$m-any in 2erms $0 sys2em uni2sC$4er DE,000 res2auran2s ar$und 23e 1$rld in m$re 23an 110 c$un2ries and 2erri2$ries. In 200F, Yum!As 5l$6al sales 2$2aled m$re 23an !SG11 6illi$n.

YUM! RESTAURANTS INDIA

Yum! Restaurants India became a separately reported division in late 2 !!" underscorin# t$e potential scale o% India as a &ey emer#in# mar&et' To#et$er (it$ Yum! )$ina and Yum! Restaurants

International" t$is important division contributes to our robust international #ro(t$'

Today, our India business consists of more than 220 KFCs and 170 Pizza Hut restaurants with stron unit rowth! KFC is the fastest rowin "uic#$ser%ice restaurant brand in India, and Pizza Hut has been ran#ed as the &1 most trusted food$ser%ice brand in India for a si'th year in a consumer sur%ey by The (conomic Times! India a)so has o%er 100 Pizza Hut Home *er%ice units! +dditiona))y, Taco ,e)) has entered India as -art of our efforts to de%e)o- Taco ,e)) into our third internationa) brand! .ur team in India has estab)ished a hi h)y successfu) business mode) to acce)erate a ressi%e future rowth! /e are %ery e'cited about our de%e)o-ment in the wor)d0s second )ar est emer in mar#et!

H,*-.&/ Yum! 1as crea2ed $n Oc2$6er H, 1IIH, as T&,+.( G0.1'0 R2*-'#&'(-*, I(+. an inde-enden2 c$m-any, as a resul2 $0 a s-in-$u2 0r$m (e-si+$, 13ic3 $1ned and 0ranc3ised 23e ?F+, (i88a 'u2 and %ac$ Bell 6rands 1$rld1ide. Because $0 23e c$m-anyAs -re4i$us rela2i$ns3i- 1i23 (e-si, Yum! Brands 3as a li0e2ime c$n2rac2 1i23 (e-si+$, 1i23 n$2a6le e/ce-2i$ns 6ein5 23e c$n2rac2 $0 AB; )es2auran2s 1i23 &r (e--er Sna--le 9r$u- 2$ 6e 23e e/clusi4e res2auran2 -r$4ider $0 AB; )$$2 Beer, and 23e c$n2rac2s $0 0ranc3isees suc3 as '"S'$s2 and c$lle5e-$-era2ed l$ca2i$ns 1i23 +$ca-+$la 13ic3 $4erride YumAs li0e2ime (e-si+$ c$n2rac2, al$n5 1i23 s$me sca22ered ?F+ 0ranc3ises acr$ss 23e !ni2ed S2a2es 13ic3 c$n2inue 2$ main2ain +$7e 0$un2ain ri532s. Yum! -residen2 &a4id +. N$4a7 is a direc2$r $0 @.(. "$r5an +3ase and 6ecame c3ie0 e/ecu2i4e $00icer $0 Yum! Brands $n @anuary 1, 2000, and c3airman $0 23e 6$ard $n @anuary 1, 2001. 'e is als$ a mem6er $0 23e Yum! e/ecu2i4eJ0inance c$mmi22ee.

In "arc3 2002, %ric$n ann$unced 23e acKuisi2i$n $0 *e/in52$n, ?en2uc7y,-6ased Y$r7s3ire 9l$6al )es2auran2s, $1ner $0 23e *$n5 @$3n Sil4erAs and AB; All-American F$$d c3ains and i2s in2en2i$n 2$ c3an5e 23e c$m-anyAs name 2$ Yum! Brands, Inc. On "ay 1E, 2002, 23e name c3an5e 6ecame e00ec2i4e a02er a 4$2e durin5 23e c$m-anyAs annual s3are3$lders mee2in5, and $n @une 1H, 2002, Yum! e/ecu2ed a 21$-0$r-$ne s2$c7 s-li2. S3$r2ly a02er1ards, due 2$ Yum!As li0e2ime c$n2rac2 1i23 (e-si, *$n5 @$3n Sil4erAs and AB; )es2auran2s (6$23 $0 13ic3 -re4i$usly ser4ed +$ca-+$la# s1i2c3ed 2$ (e-si -r$duc2s $nce 23eir 0ranc3ise c$n2rac2s e/-ired, 1i23 AB; re2ainin5 AB; )$$2 Beer 0r$m a se-ara2e deal 1i23 &r (e--er Sna--le 9r$u-. %3e 5r$123 $0 Yum! Brands 23r$u53$u2 23e !ni2ed S2a2es 3as sl$1ed 0r$m i2s -re4i$us ra-id e/-ansi$n 6ecause 23e c3ain 3as sa2ura2ed m$s2 $0 23e d$mes2ic mar7e2. %3e 0u2ure 5r$123 $0 Yum! Brands is 2ar5e2ed mainly a2 $23er c$un2riesL +3ina in -ar2icular 3as a lar5e -$-ula2i$n and is enM$yin5 increases in inc$me. Since 200E, Yum! Brands 3as ser4ed as 23e c$r-$ra2e s-$ns$r $0 23e ?en2uc7y &er6y.

A sin5le Yum! res2auran2 0acili2y c$-6randed as %ac$ Bell and ?F+ in San Francisc$, +ali0$rnia

A %ac$ Bell and a ?F+ $n adMacen2 l$2s in Burlin52$n, N$r23 +ar$lina

B&'()*

AB; )es2auran2s (5l$6al, limi2ed in +anada# ?F+ J ?en2uc7y Fried +3ic7en (5l$6al# (i88a 'u2 (5l$6al# %ac$ Bell (5l$6al# ;in5S2ree2 (!ni2ed S2a2es, +anada, 9ermany and +y-rus# *$n5 @$3n Sil4erAs (!ni2ed S2a2es, (uer2$ )ic$, %ai1an, Ne1 <ealand, Aus2ralia and Sin5a-$re# &$n5 Fan5 @i Bai (Eas2 &a1nin5# ((e$-leAs )e-u6lic $0 +3ina#

Y!"! Brands 23e 1$rldAs lar5es2 res2auran2 c$m-any in 2erms $0 sys2em res2auran2s 1i23 m$re 23an DE,000 res2auran2s in $4er 110 c$un2ries and 2erri2$ries and $4er 1 milli$n ass$cia2es. F$ur $0 $ur res2auran2 6rands N ?F+, (i88a 'u2, %ac$ Bell and *$n5 @$3n Sil4erAs N are 23e 5l$6al leaders $0 23e c3ic7en, -i88a, "e/ican-s2yle 0$$d and Kuic7-ser4ice sea0$$d ca2e5$ries

S32+,'0-,2* =uic7 ser4ice res2auran2s, c3ic7en, -i88a, 2ac$s

Yum! is ar$und 23e 5l$6e and in y$ur l$cal nei536$r3$$d. ;i23 0i4e 6rands, D>,000 res2auran2s in $4er 100 c$un2ries, and $4er 1 milli$n em-l$yees, 23ere are c$un2less -$si2i$ns and $--$r2uni2ies 6$23 near and 0ar. +3ec7 $u2 $ur )es2auran2 Su--$r2 +en2er l$ca2i$ns 2$ 5e2 a sna-s3$2 $0 Yum! ci2y li0e.

Chapter 2

COM!ANY !ROFILE

2.1 COM!ANY O

ER IE4

Yum! Brands, Inc., 0$unded in 1IHH and3eadKuar2ered in *$uis4ille, ?en2uc7y, $-era2es 0ranc3ises and licenses se4eral c3ains $0 res2auran2s includin5 ?F+, (i88a 'u2, %ac$ Bell, *$n5 @$3n Sil4er.s (*@S# and All America F$$d (AB;#. %3e c$m-any is a leader in 23e res2auran2 indus2ry 1i23 a--r$/ima2ely DH000 s2$res $-era2in5 in 110 c$un2ries. %3e c$m-any -u2 *S@ and AB ; 0$r sale in "arc3 $0 2011 in $rder 2$ 0$cus $n i2s 5l$6al e/-ansi$n.

Yum! Brands Inc. e/-$r2s success0ul res2auran2 c$nce-2s ar$und 23e 1$rld, -ar2icularly 2$ +3ina. Bu2 a02er re-$r2in5 sec$nd-Kuar2er earnin5s las2 1ee7, 23e c$m-any said i2 3$-es 2$ im-$r2 s$me $0 i2s 6es2 in2erna2i$nal -rac2ices and re4erse 23e disa--$in2in5 -er0$rmance $0 i2s d$mes2ic uni2s. ;ea7ened !.S. sales 1ei53ed d$1n 2 -ercen2 c$m-ara6le-sales 5ains in Yum.s in2erna2i$nal di4isi$n and 1F--ercen2 5ains in +3ina in 23e sec$nd Kuar2er. On 23e same day *$uis4ille, ?y.-6ased Yum discl$sed a O--ercen2 dr$- in same-s2$re sales 0$r i2s 1H,2IO !.S. res2auran2s, a re-$r2 sur0aced 23a2 c3ie0 e/ecu2i4e &a4id N$4a7 1$uld call $n 23e c$m-any.s ad a5encies 2$ de4ise a -lan 2$ im-r$4e d$mes2ic sales a2 %ac$ Bell, ?F+ and (i88a 'u2. '$1e4er, c$nsiderin5 Yum s2ruc2ural c3allen5es N$4a7 iden2i0ied durin5 a c$n0erence call 1i23 0inancial analys2s las2 1ee7, 23e c$m-any may 3a4e c3allen5es 6ey$nd Mus2 mar7e2in5. Yum.s 23ree -rinci-al 6rands all 0ace 0ierce c$m-e2i2i$n in 23eir se5men2s. In 23e case $0 %ac$ Bell, i2s m$s2 -r$0i2a6le d$mes2ic 6rand, ne5a2i4e -u6lici2y 0r$m a 1i23dra1n la1sui2 dam-ened sales and 2ra00ic m$re dee-ly and 0$r l$n5er 23an e/ecu2i4es e/-ec2ed. PYum.s !.S. 6usiness 2a7es 23e Q-ri8e. 0$r 23e 1$rs2--er0$rmin5 res2auran2 6usiness 1e 7n$1 $0, 1r$2e @.(. "$r5an securi2ies analys2 @$3n I4an3$e, P1i23 all 23ree $0 i2s 6rands ne5a2i4e-O -ercen2 4ersus $ur ne5a2i4e-2--ercen2 Res2ima2eS, includin5 ne5a2i4e-2 -ercen2 a2 (i88a 'u2 and ne5a2i4e-> a2 ?F+.

2.2 RECENT E ENTS

2.2.1 %3e 1.D 6illi$n -$-ula2i$n and 23e -ar2icular 2as2es $0 23e 0$$d in +3ina 1ill ensure23a2 Yum +3ina 1ill c$n2inue 2$ 5r$1 su6s2an2ially in 23e ne/2 0e1 years. 2.2.2 %3e Yum In2erna2i$nal di4isi$n als$ ser4es as ca2alys2 0$r 23e re4enue 5r$123 0$r 23e u-c$min5 years. Yum is e/-andin5 i2s 6usiness in 0i4e maM$r c$un2ries includin5 India, 9ermany, France, )ussia, and A0rica. 2.2.3%3e !.S. di4isi$n 3as seen 5r$123 in 23e recen2 Kuar2er, and a menu c3an5e 3as -r$4en a success0ul s2ra2e5y in 6rin5in5 6ac7 cus2$mers 0r$m i2s c$m-e2i2$rs. 2.2."%3e rela2i4ely s2a6le earnin5s -r$s-ec2 is an$23er 0ac2$r as 2$ 13y $ur 5r$urec$mmends 23is s2$c7 2$ in4es2$rs. %3is c$m-any 1ill 3a4e s2a6le earnin5s 13e23er in 0inancial d$1n2urns $r in 0inancial e/-ansi$n -eri$ds 6ecause $0 23e a00$rda6le -rices 23a2 23e res2auran2s $00er.

DIFFERENT RESTAURANTS UNDER YUM% BRANDS

KFC C.&3.&'-,.( (KFC#, 0$unded and als$ 7n$1n as K2(-#+5/ F&,2) C6,+52(, is a c3ain $0 0as2 0$$d res2auran2s 6ased in *$uis4ille, ?en2uc7y, in 23e !ni2ed S2a2es. ?F+ 3as 6een a 6rand and $-era2in5 se5men2, 2ermed a concept $0 Yum! Brands since 1IIH 13en 23a2 c$m-any 1as s-un $00 0r$m (e-si+$ as %ric$n 9l$6al )es2auran2s Inc. ?F+ -rimarily sells c3ic7en -ieces, 1ra-s, salads and sand1ic3es. ;3ile i2s -rimary 0$cus is 0ried c3ic7en, ?F+ als$ $00ers a line $0 5rilled and r$as2ed c3ic7en -r$duc2s, side dis3es

and desser2s. Ou2side N$r23 America, ?F+ $00ers 6ee0 6ased -r$duc2s suc3 as 3am6ur5ers $r 7e6a6s, -$r7 6ased -r$duc2s suc3 as ri6s and $23er re5i$nal 0are.Rcitation neededS
The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952 thou!h the idea of KFC"s fried chicken actually !oes back to 19#$% The company adopted the abbre&iated form of its name in 1991% Startin! in 'pril 2$$( the company be!an usin! its ori!inal name Kentucky Fried Chicken for its si!na!e packa!in! and ad&ertisements in the )%S% as part of a new corporate re*brandin! pro!ram+ newer and remodeled restaurants will ha&e the new lo!o and name while older stores will continue to use the 19,$s si!na!e% 'dditionally -um. continues to use the abbre&iated name freely in its ad&ertisin!%

H,*-.&/

%3e res2auran2 in N$r23 +$r6in, ?en2uc7y 13ere +$l$nel Sanders de4el$-ed ?en2uc7y Fried +3ic7enT

%3e 0irs2 ?F+ res2auran2, si2ua2ed in S$u23 Sal2 *a7e, !2a3 and since re-laced 6y a ne1 ?F+ $n 23e same si2e B$rn and raised in 'enry4ille, Indiana, Sanders -assed 23r$u53 se4eral -r$0essi$ns in 3is li0e2ime. Sanders 0irs2 ser4ed 3is 0ried c3ic7en in 1ID0 in 23e mids2 $0 23e 9rea2 &e-ressi$n a2 a 5as s2a2i$n 3e $1ned in N$r23 +$r6in, ?en2uc7y. %3e dinin5 area 1as named USanders +$ur2 B +a0VU and 1as s$ success0ul 23a2 in 1IDE ?en2uc7y 9$4ern$r )u6y *a00$$n 5ran2ed Sanders 23e 2i2le $0 3$n$rary Kentucky Colonel in rec$5ni2i$n $0 3is c$n2ri6u2i$n 2$ 23e s2a2eAs cuisine. %3e 0$ll$1in5 year Sanders e/-anded 3is res2auran2 2$ 1O2 sea2s, and added a m$2el 3e 6$u532 acr$ss 23e s2ree2. ;3en Sanders -re-ared 3is c3ic7en in 3is $ri5inal res2auran2 in N$r23 +$r6in, 3e -re-ared 23e c3ic7en in an ir$n s7ille2, 13ic3 2$$7 a6$u2 D0 minu2es 2$ d$, 2$$ l$n5 0$r a res2auran2 $-era2i$n. In 1IDI, Sanders al2ered 23e c$$7in5 -r$cess 0$r 3is 0ried c3ic7en 2$ use a -ressure 0ryer, resul2in5 in a 5rea2ly reduced

c$$7in5 2ime c$m-ara6le 2$ 23a2 $0 dee- 0ryin5. In 1IO0 Sanders de4ised 13a2 came 2$ 6e 7n$1n as 3is Original Recipe. %3e Sanders +$ur2 B +a0V 5enerally ser4ed 2ra4elers, $02en 23$se 3eaded 2$ Fl$rida, s$ 13en 23e r$u2e -lanned in 23e 1I>0s 0$r 13a2 1$uld 6ec$me In2ers2a2e H> 6y-assed +$r6in, 3e s$ld 3is -r$-er2ies and 2ra4eled 23e !.S. 2$ sell 3is c3ic7en 2$ res2auran2 $1ners. %3e 0irs2 2$ 2a7e 3im u- $n 23e $00er 1as (e2e 'arman in S$u23 Sal2 *a7e, !2a3L 2$5e23er, 23ey $-ened 23e 0irs2 U?en2uc7y Fried +3ic7enU $u2le2 in 1I>2. By 23e early 1IE0s, ?en2uc7y Fried +3ic7en 1as s$ld in $4er E00 0ranc3ised $u2le2s in 6$23 23e !ni2ed S2a2es and +anada. One $0 23e l$n5es2-li4ed 0ranc3isees $0 23e $lder +$l. SandersA c3ic7en c$nce-2, as $--$sed 2$ 23e ?F+ c3ain, 1as 23e ?enny ?in5s c3ain. %3e c$m-any $1ned many N$r23ern O3i$ diner-s2yle res2auran2s, 23e las2 $0 13ic3 cl$sed in 200O.

Sanders s$ld 23e en2ire ?F+ 0ranc3isin5 $-era2i$n in 1IEO 0$r G2 milli$n !S&, eKual 2$ G1O,02H,IFH 2$day Since 23a2 2ime, 23e c3ain 3as 6een s$ld 23ree m$re 2imes 2$ 'eu6lein in 1IH1, 2$ ).@. )eyn$lds in 1IF2 and m$s2 recen2ly 2$ (e-si+$ in 1IFE, 13ic3 made i2 -ar2 $0 i2s %ric$n 9l$6al )es2auran2s di4isi$n, 13ic3 in 2urn 1as s-un $00 in 1IIH, and 3as n$1 6een renamed 2$ Yum! Brands. Addi2i$nally, +$l$nel SandersA ne-3e1, *ee +ummin5s, 2$$7 3is $1n ?en2uc7y Fried +3ic7en 0ranc3ises (and a c3ic7en reci-e $0 3is $1n# and c$n4er2ed 23em 2$ 3is $1n Us-in-$00U res2auran2 c3ain, *eeAs Fam$us )eci-e +3ic7en. %$day, s$me $0 23e $lder ?F+ res2auran2s 3a4e 6ec$me 0am$us in 23eir $1n ri532. One suc3 res2auran2 is l$ca2ed in "arie22a, 9e$r5ia. %3is s2$re is n$2a6le 0$r a >E-0$$2 (1H m# 2all si5n 23a2 l$$7s li7e a c3ic7en. %3e si5n, 7n$1n l$cally as 23e Bi5 +3ic7en, 1as 6uil2 0$r an earlier 0as2-0$$d res2auran2 $n 23e si2e called @$3nny )e6As +3ic7, +3uc7 and S3a7e. I2 is $02en used as a 2ra4el re0erence -$in2 in 23e A2lan2a area 6y l$cals and -il$2s. T62 *2+&2- &2+,32

%3e +$l$nelAs secre2 0la4$r reci-e $0 11 3er6s and s-ices 23a2 crea2es 23e 0am$us U0in5er lic7inA 5$$dU c3ic7en remains a 2rade secre2. ($r2i$ns $0 23e secre2 s-ice mi/ are made a2 di00eren2 l$ca2i$ns in 23e !ni2ed S2a2es, and 23e $nly c$m-le2e, 3and1ri22en c$-y $0 23e reci-e is 7e-2 in a 4aul2 in c$r-$ra2e 3eadKuar2ers. On Se-2em6er I, 200F, 23e $ne c$m-le2e c$-y 1as 2em-$rarily m$4ed 2$ an undiscl$sed l$ca2i$n under e/2remely 2i532 securi2y 13ile ?F+ re4am-ed 23e securi2y a2 i2s 3eadKuar2ers. Be0$re 23e m$4e, ?F+ discl$sed 23e 0$ll$1in5 de2ails a6$u2 23e reci-e and i2s securi2y arran5emen2s

%3e reci-e, 13ic3 includes e/ac2 am$un2s $0 eac3 c$m-$nen2, is 1ri22en in -encil $n a sin5le s3ee2 $0 n$2e6$$7 -a-er and si5ned 6y Sanders. %3e reci-e 1as l$c7ed in a 0ilin5 ca6ine2 1i23 21$ se-ara2e c$m6ina2i$n l$c7s. %3e ca6ine2 als$ included 4ials $0 eac3 $0 23e 11 3er6s and s-ices used. Only 21$ e/ecu2i4es 3ad access 2$ 23e reci-e a2 any $ne 2ime. ?F+ re0uses 2$ discl$se 23e names and 2i2les $0 ei23er e/ecu2i4e. One $0 23e 21$ e/ecu2i4es said 23a2 n$ $ne 3ad c$me cl$se 2$ 5uessin5 23e c$n2en2s $0 23e secre2 reci-e, and added 23a2 23e ac2ual reci-e 1$uld include s$me sur-rises.

On Fe6ruary I, 200I, 23e secre2 reci-e re2urned 2$ ?F+As *$uis4ille 3eadKuar2ers in a m$re secure, c$m-u2eri8ed 4aul2 5uarded 6y m$2i$n de2ec2$rs and securi2y cameras. )e-$r2edly, 23e -a-er 3as yell$1ed and 23e 3and1ri2in5 is n$1 0ain2. In 1IFD, 1ri2er ;illiam ($unds2$ne e/amined 23e reci-e in 3is 6$$7 Big Secrets. 'e re4ie1ed SandersA -a2en2 a--lica2i$n, and ad4er2ised in c$lle5e ne1s-a-ers 0$r -resen2 $r 0$rmer em-l$yees 1illin5 2$ s3are 23eir 7n$1led5e. Fr$m 23e 0$rmer 3e deduced 23a2 Sanders 3ad di4er5ed 0r$m $23er c$mm$n 0ried-c3ic7en reci-es 6y 4aryin5 23e am$un2 $0 $il used 1i23 23e am$un2 $0 c3ic7en 6ein5 c$$7ed, and s2ar2in5 23e c$$7in5 a2 a 3i53er 2em-era2ure (a6$u2 O00 WF (200 W+## 0$r 23e 0irs2 minu2e $r s$ and 23en l$1erin5 i2 2$ 2>0 WF (120 W+# 0$r 23e remainder $0 23e c$$7in5 2ime. Se4eral $0 ($unds2$neAs c$n2ac2s als$ -r$4ided sam-les $0 23e seas$nin5 mi/, and a 0$$d la6 0$und 23a2 i2 c$nsis2ed s$lely $0 su5ar, 0l$ur, sal2, 6lac7 -e--er and m$n$s$dium 5lu2ama2e ("S9#. 'e c$ncluded 23a2 i2 1as en2irely -$ssi6le 23a2, in 23e years since Sanders s$ld 23e c3ain, la2er $1ners 3ad

6e5un s7im-in5 $n 23e reci-e 2$ sa4e c$s2s. F$ll$1in5 3is 6uy$u2 in 1IEO, +$l$nel Sanders 3imsel0 e/-ressed an5er a2 suc3 c3an5es, sayin5 %3a2 0ri55inA ... $u20i2 .... %3ey -r$s2i2u2ed e4ery 5$ddamn 23in5 I 3ad. I 3ad 23e 5rea2es2 5ra4y in 23e 1$rld and 23$se s$ns $0 6i2c3es-- 23ey dra55ed i2 $u2 and e/2ended i2 and 1a2ered i2 d$1n 23a2 IAm s$ 5$ddamn mad! ost !anted Recipes, als$ claims 2$ 3a4e

)$n &$u5las, au23$r $0 23e 6$$7 America's 0i5ured $u2 ?F+As secre2 reci-e. !&.)#+-*

!'+5'7,(7 %3e 0am$us -a-er 6uc7e2 23a2 ?F+ uses 0$r i2s lar5er si8ed $rders $0 c3ic7en and 3as c$me 2$ si5ni0y 23e c$m-any 1as $ri5inally crea2ed 6y ;endyAs res2auran2s 0$under &a4e %3$mas. %3$mas 1as $ri5inally a 0ranc3isee $0 23e $ri5inal ?en2uc7y Fried +3ic7en and $-era2ed se4eral $u2le2s in 23e +$lum6us, O3i$ area. 'is reas$nin5 6e3ind usin5 23e -a-er -ac7a5in5 1as 23a2 i2 3el-ed 7ee- 23e c3ic7en cris-y 6y 1ic7in5 a1ay e/cess m$is2ure. %3$mas 1as als$ res-$nsi6le 0$r 23e crea2i$n $0 23e 0am$us r$2a2in5 6uc7e2 si5n 23a2 came 2$ 6e used a2 m$s2 ?F+ l$ca2i$ns in 23e !S. M2(# ,-2$* %3is is a lis2 $0 menu i2ems s$ld a2 ?F+. C6,+52(

?F+As s-ecial2y is 0ried c3ic7en ser4ed in 4ari$us 0$rms. ?F+As -rimary -r$duc2 is -ressure-0ried -ieces $0 c3ic7en made 1i23 23e original recipe. %3e $23er c3ic7en $00erin5, e"tra crispy, is made usin5 a 5arlic marinade and d$u6le di--in5 23e c3ic7en in 0l$ur 6e0$re dee- 0ryin5 in a s2andard indus2rial 7i2c3en 2y-e mac3ine. ?en2uc7y 9rilled +3ic7en N %3is marina2ed 5rilled c3ic7en is 2ar5e2ed 2$1ards 3eal23-c$nsci$us cus2$mers. I2 0ea2ures marina2ed 6reas2s, 23i53s, drums2ic7s, and 1in5s 23a2 are c$a2ed 1i23 seas$nin5s 6e0$re 6ein5 5rilled. I2 3as less 0a2, cal$ries, and s$dium 23an 23e Ori5inal )eci-e 0ried c3ic7en. In2r$duced in A-ril 200I. ?F+ 3as 21$ lines $0 sand1ic3es i2s Ure5ularU c3ic7en sand1ic3es and i2s Snac7ers line. %3e re5ular sand1ic3es are ser4ed $n ei23er a sesame seed $r c$rn dus2ed r$ll and are made 0r$m ei23er 13$le 6reas2 0ille2s (0ried $r r$as2ed#, c3$--ed c3ic7en in a sauce $r 0ried c3ic7en s2ri-s. %3e Snac7ers line are 4alue -riced i2ems 23a2 c$nsis2 $0 c3ic7en s2ri-s and 4ari$us 2$--in5s. In 23e !?, Aus2ralia and Ne1 <ealand, sand1ic3es are re0erred 2$ as U6ur5ersUL 23ere is 23e c3ic7en 0ille2 6ur5er (a c3ic7en 6reas2 0ille2 c$a2ed in an $ri5inal-reci-e c$a2in5 1i23 salad 5arnis3 and may$nnaise# and a <in5er Bur5er (as 1i23 23e 0$rmer 6u2 1i23 a s-icier c$a2in5 and salsa#. B$23 $0 23ese are a4aila6le as U2$1erU 4arian2s, 13ic3 include a slice $0 c3eese and a 3as3 6r$1n. ?F+ c$nsiders i2s &$u6le &$1n -r$duc2 a sand1ic3 in s-i2e $0 c$n2ainin5 n$ 6read. A 4arie2y $0 smaller 0in5er 0$$d -r$duc2s are a4aila6le a2 ?F+ includin5 c3ic7en s2ri-s, 1in5s, nu55e2s and -$-c$rn c3ic7en. %3ese -r$duc2s can 6e $rdered -lain $r 1i23 4ari$us sauces, includin5 se4eral 2y-es $0 6ar6ecue sauces and 6u00al$ sauce. %3ey als$ $00er -$2a2$ 1ed5es. Se4eral -ies 3a4e 6een made a4aila6le 0r$m ?F+. %3e ($2 (ie is a sa4$ry -ie made 1i23 c3ic7en, 5ra4y and 4e5e2a6les. In 23e sec$nd Kuar2er $0 200E, ?F+ in2r$duced i2s 4aria2i$n $n S3e-3erdAs -ie called 23e #amous Bo$l. Ser4ed in a -las2ic 6$1l, i2 is layered 1i23 mas3ed -$2a2$es $r rice, 5ra4y, c$rn, -$-c$rn c3ic7en, and c3eese,

and is ser4ed 1i23 a 6iscui2. %3e 6$1l 3ad 6een a4aila6le a2 ?F+As s-ecial 2es2 mar7e2 s2$re in *$uis4ille since 23e 23ird Kuar2er $0 200>.

%3e ?F+ %1is2er is a 1ra- 23a2 c$nsis2s $0 ei23er c3ic7en s2ri-s $r r$as2ed c3ic7en, 2$ma2$, le22uce and (-e--er# may$nnaise 1ra--ed in a 2$r2illa. In Eur$-e, 23e %1is2er is s$ld in 21$ 4arie2ies 1# 23e 9rilled %1is2er (c3ic7en s2ri-s#, and 2# 23e 9rilled "e/ican 21is2erJS-icy %$as2ed %1is2er (!?# (c3ic7en 6reas2 su--lemen2ed 6y 2$r2illa c3i-s and salsa, !? adds $nly salsa 2$ -e--er may$nnaise#, ?F+ Fillers are a I in (2D cm# su6, a4aila6le in 0$ur 4arie2ies $4er 23e summer -eri$d in Aus2ralia. S3is3 7e6a6 N in se4eral mar7e2s ?F+ sells 7e6a6s. ?en2uc7y Bar6ecued +3ic7en N 6ar6ecued c3ic7en di--ed in 23e $ri5inal reci-e ;ra-s2ar is a 4arian2 $0 23e ?F+ %1is2er, c$nsis2in5 $0 c3ic7en s2ri-s 1i23 salsa, c3eese, salad, -e--er may$nnaise and $23er in5redien2s, c$n2ained in a c$m-ressed 2$r2illa.

O-62& 3&.)#+-*

+$lesla1 In s$me in2erna2i$nal l$ca2i$ns, ?F+ may sell 3am6ur5ers, -$r7 ri6s $r 0is3. In 23e !.S., ?F+ 6e5an $00erin5 23e #is% Snacker sand1ic3 durin5 *en2 in 200E. %3e Fis3 Snac7er c$nsis2s $0 a rec2an5ular -a22y $0 Alas7an ($ll$c7 $n a small 6un, and is 23e 0i023 ?F+ menu i2em in 23e Snacker ca2e5$ry. S$me in2erna2i$nal l$ca2i$ns als$ may sell ?F+ A"as3iesA - 6alls $0 mas3ed -$2a2$ c$$7ed in $ri5inal reci-e 6a22er

%3ree 2y-es $0 salads (13ic3 can 6e 2$--ed 1i23 r$as2ed $r 0ried c3ic7en# are a4aila6le a2 ?F+ +aesar, 3$use, and B*% salads (in 23e !S#. %3e B$neless BanKue2

<in5er Bur5er N A re5ular si8ed 6ur5er 13ic3 re5ularly c$nsis2s $0 a 6$neless 0ille2 $0 3$2 and s-icy c3ic7en, le22uce and may$nnaise in a 6ur5er 6un. +3eese, 2$ma2$, 6ac$n and -inea--le can 6e added u-$n reKues2. Bar6ecue sauce can als$ re-laceJM$in 23e may$nnaise. +3ili +3eese Fries N By 200H, 2 0$rmer ?F+JAB; )es2auran2s l$ca2i$ns in Berlin and +$l$5ne, 9ermany 3ad re4er2ed 2$ ?F+-$nly l$ca2i$ns and 23e 23ird l$ca2i$n in 9ar6sen (6y 'ann$4er# 1as cl$sed in 200>. %3e $nly remnan2 0r$m 23e 0$rmer AB; menu are 23e +3ili +3eese Fries 13ic3 1ere added 2$ 23e sys2em1ide ?F+ 9ermany menu. (ar0ai2 desser2s N U*i22le Buc7e2 (ar0ai2sU in 4arie2ies suc3 as Fud5e Br$1nie, +3$c$la2e +rXme ($nce called 23e +$l$nelAs *i22le Fud5e Buc7e2#, *em$n +rXme and S2ra16erry S3$r2ca7e are a4aila6le a2 m$s2 l$ca2i$ns in 23e !S. Sara *ee &esser2s N A4aila6le in ei23er +$$7ies and +ream +3eeseca7e $r +3$c +aramel "$usse. ?rus3ers, a4aila6le in Aus2ralia, S$u23 A0rica and Ne1 <ealand. %3ese are drin7s c$n2ainin5 Ureal 6i2sU. %3ey include Uclassic 7rus3ersU, Usm$$23ie 7rus3ersU and U0rui2 7rus3ersU. Selec2ed $u2le2s are n$1 eKui--ed 1i23 U?rus36arsU 2$ ser4e 23ese drin7s.

S,)2*

O23er 23an 0ried c3ic7en, many ?F+ res2auran2s ser4e side dis3es li7e c$lesla1, 4ari$us -$2a2$-6ased i2ems (includin5 -$2a2$ 1ed5es, 0renc3 0ries and mas3ed -$2a2$es 1i23 5ra4y#, 6iscui2s, 6a7ed 6eans, macar$ni and c3eese, macar$ni salad, rice, s2eamed 4e5e2a6les and c$rn $n 23e c$6.

D,*+.(-,(#2) 3&.)#+-*

%ender )$as2 +3ic7en N %3is -r$duc2 1as an $00s3$$2 $0 U%3e +$l$nelAs )$2isserie 9$ldU. Ins2ead $0 13$le and 3al0 6irds, cus2$mers 1ere 5i4en Kuar2er r$as2ed c3ic7en -ieces. F$r a 2ime, cus2$mers c$uld reKues2 c3ic7en U$ri5inalU, UE/2ra %as2y +ris-yU, $r U%ender )$as2U. %3e +$l$nelAs )$2isserie 9$ld N %3is -r$duc2 1as in2r$duced in 23e 1II0s as a res-$nse 2$ 23e B$s2$n "ar7e2 c3ainAs r$as2ed c3ic7en -r$duc2s, and a 3eal23ier mindse2 $0 23e 5eneral -u6lic a4$idin5 0ried 0$$d. (ur-$r2edly made 0r$m a Ul$s2U +$l. Sanders reci-e, i2 1as s$ld as a 13$le r$as2er $r a 3al0 6ird. +3ic7en *i22le sand1ic3 N a 4alue $rien2ed sand1ic3 23a2 s$ld 0$r !SG0.DI in 23e !.S. durin5 23e la2e 1IF0s and early 1II0s. I2 1as a small c3ic7en -a22y 1i23 may$nnaise $n a small r$ll, similar 2$ ;3i2e +as2leAs mini c3ic7en sand1ic3. E/2ra %as2y +ris-y (E%+# N +3ic7en muc3 li7e 23e E/2ra +ris-y ser4ed 2$day, e/ce-2 E%+ 1as -re-ared usin5 c3ic7en 23a2 3ad 6een s$a7in5 0$r 1> minu2es in a

s-ecial marinade mac3ine. %3ere is s$me s-ecula2i$n 23a2 23e marinade may 3a4e 6een made 1i23 2rans-0a2s, and ?F+ 6$as2s 2$ n$ l$n5er use 2rans-0a2s in 23eir c3ic7en, 23e 7n$1n in5redien2s 1ere 5arlic and c3ic7en s2$c7. In 23e summer $0 200H, ?F+ s2ar2ed mar7e2in5 23e c3ic7en Mus2 as UE/2ra +ris-yU 1i23$u2 23e marinade.

?en2uc7y Nu55e2s 1ere a c3ic7en nu55e2 -r$duc2 a4aila6le a2 ?F+ 0r$m &ecem6er 1IFO un2il 1IIE. N$ reas$n 3as 6een 5i4en 0$r 23eir disc$n2inua2i$n. I2 is s2ill s$ld in Aus2ralia. Sm$7ey +3i-$2le N In2r$duced in A-ril 200F. %3e c3ic7en 1as di--ed in c3i-$2le sauce 23en d$u6led 6readed and 0ried. I2 3as 6een disc$n2inued since Au5us2 200F.

N#-&,-,.('0 8'0#2

?F+ 0$rmerly used -ar2ially 3ydr$5ena2ed $il in i2s 0ried 0$$ds. %3is $il c$n2ains rela2i4ely 3i53 le4els $0 2rans 0a2, 13ic3 increases 23e ris7 $0 3ear2 disease. %3e +en2er 0$r Science in 23e (u6lic In2eres2 (+S(I# 0iled a c$ur2 case a5ains2 ?F+, 1i23 23e aim $0 ma7in5 i2 use $23er 2y-es $0 $ils $r ma7e sure cus2$mers 7n$1 a6$u2 2rans 0a2 c$n2en2 immedia2ely 6e0$re 23ey 6uy 0$$d. In Oc2$6er 200E, ?F+ ann$unced 23a2 i2 1$uld 6e5in 0ryin5 i2s c3ic7en in 2rans 0a2-0ree $il. %3is 1$uld als$ a--ly 2$ 23eir -$2a2$ 1ed5es and $23er 0ried 0$$ds, 3$1e4er, 23e 6iscui2s, macar$ni and c3eese, and mas3ed -$2a2$es 1$uld s2ill c$n2ain 2rans 0a2. %rans 0a20ree s$y6ean $il 1as in2r$duced in all ?F+ res2auran2s in 23e !.S. 6y A-ril D0, 200H. +S(I ann$unced 23a2 i2 1$uld immedia2ely dr$- i2s la1sui2 a5ains2 ?F+ and 1as 3$-e0ul 23a2 23is 1$uld crea2e a ri--le e00ec2 $n $23er res2auran2s $r 0as2 0$$d c3ains 23a2 -re-are 0$$d ric3 in 2rans 0a2. UI0 ?F+, 13ic3 dee--0ries alm$s2 e4ery23in5, can 5e2 23e ar2i0icial 2rans 0a2 $u2 $0 i2s 0ryin5 $il, any$ne can,U +S(I e/ecu2i4e direc2$r "ic3ael @ac$6s$n said in a s2a2emen2. A)82&-,*,(7

?F+As l$5$ used 0r$m 1IIH un2il N$4em6er 200E Early 2ele4isi$n ad4er2isemen2s 0$r ?F+ re5ularly 0ea2ured +$l$nel Sanders lic7in5 3is 0in5ers and 2al7in5 2$ 23e 4ie1er a6$u2 3is secre2 reci-e, and 6y 23e 1IE0s 6$23 23e +$l$nel and 23e c3ainAs s2ri-ed 6uc7e2 3ad 6ec$me 1ell-7n$1n. %3e 6uc7e2 as -r$duc2 -lacemen2 can 6e seen in 23e 3ands $0 6$23 Anne22e Funicell$ and &1ayne 'ic7man in 1IE>As Ho$ to Stu&& a !ild Bikini, and 1as als$ 0ea2ured -r$minen2ly in 23e 1IEF (e2er Sellers 4e3icle, T%e Party. %3e +$l$nel made a--earances as 3imsel0 in @erry *e1isAs T%e Big out% (1IEH#, 'ersc3ell 9$rd$n *e1isA Blast'O&& (irls (1IEH# and Al Adams$nAs Hell's Bloody )e*ils (1IH0#, as 1ell as an a--earance in 1IEF $n Ro$an + artin's ,aug%'-n.

A ?F+ %a7e-A1ay %railer l$ca2ed in Sar5$d3a, (a7is2an %3e anima2ed +$l$nel is unc$mm$n 2$day. S2ill usin5 a 3um$r$us slan2, 23e curren2 ?F+ cam-ai5n re4$l4es m$s2ly ar$und cus2$mers enM$yin5 23e 0$$d. I2 als$ 0ea2ures a m$di0ied 4ersi$n $0 *ynyrd S7ynyrdAs US1ee2 '$me Ala6amaU as 23e 23eme s$n5 0$r -rac2ically all i2s c$mmercials, 23$u53 23e res2auran2 ac2ually 3ails 0r$m ?en2uc7y. In 200E, ?F+ claimed 2$ 3a4e made 23e 0irs2 l$5$ 4isi6le 0r$m $u2er s-ace, 23$u53 )eadymi/ 3as 3ad $ne since 1IE>.ROOSRO>S ?F+ says UI2 mar7ed 23e $00icial de6u2 $0 a massi4e 5l$6al re-ima5e cam-ai5n 23a2 1ill c$n2em-$ri8e 1O,000--lus ?F+ res2auran2s in $4er F0 c$un2ries $4er 23e ne/2 0e1 years.U %3e l$5$ 1as 6uil2 0r$m E>,000 $ne-0$$2sKuare 2iles, and i2 2$$7 si/ days $n si2e 2$ c$ns2ruc2 in early N$4em6er. %3e l$5$ 1as

-laced in 23e "$Ma4e &eser2 near )ac3el, Ne4ada.ROES I2 is l$ca2ed in 23e n$r23ern sec2i$n $0 )ac3el, Ne4ada a2 DH.EOE0WN 11>.H>0HW; . "any ?F+ l$ca2i$ns are c$-l$ca2ed 1i23 $ne $r m$re $0 Yum! Brands res2auran2s, *$n5 @$3n Sil4erAs, %ac$ Bell, (i88a 'u2, $r AB; )es2auran2s. "any $0 23ese l$ca2i$ns 6e3a4e li7e a sin5le res2auran2, $00erin5 a sin5le menu 1i23 0$$d i2ems 0r$m 6$23 res2auran2s.

%3e resurrec2ed ?en2uc7y Fried +3ic7en l$5$ One $0 ?F+As la2es2 ad4er2isemen2s is a c$mmercial ad4er2isin5 i2s U1ic7ed crunc3 6$/ mealU. %3e c$mmercial 0ea2ures a 0ic2i$nal 6lac7 me2al 6and called U'ell4e2icaU -er0$rmin5 li4e, 23e lead sin5er 23en s1all$1s 0ire. %3e c$mmercial 23en s3$1s 23e lead sin5er a2 a ?F+ ea2in5 23e U1ic7ed crunc3 6$/ mealU and sayin5 UO3 man 23a2 is 3$2U. In 200H, 23e $ri5inal, n$n-acr$nymic Kentucky #ried C%icken name 1as resurrec2ed and 6e5an 2$ rea--ear $n c$m-any mar7e2in5 li2era2ure and 0$$d -ac7a5in5, as 1ell as s$me res2auran2 si5na5e. In 2010, an ad4er2isemen2 1as s3$1n in Aus2ralia s3$1in5 an Aus2ralian cric7e2 0an 5i4in5 ;es2 Indies 0ans ?F+ c3ic7en 2$ 7ee- 23em Kuie2. %3e ad s-ar7ed a de6a2e $4er racism in 23e ad, su55es2in5 23a2 all 6lac7 -e$-le ea2 0ried c3ic7en. Fried c3ic7en 1as ea2en 6y 6lac7 sla4es 6ecause i2 1as c3ea- and easy 2$ ma7e. %3$u53 ?F+ s2a2ed 23a2 i2 1as Umisin2er-re2ed 6y a se5men2 $0 -e$-le in 23e !SU, 23e ad 1as la2er -ulled 0r$m %,. '$1e4er, se4eral Aus2ralian c$mmen2a2$rs 3a4e e/-ressed 23e $-ini$n 23a2 23e ad is n$2 racis2, 6ecause 23is is n$2 a racial s2ere$2y-e in Aus2ralia and 23e cric7e2 0ans in 23e ad are n$2 A0rican American, 6u2 ;es2 Indies cric7e2 su--$r2ers (23e ;es2 Indies cric7e2 2eam 1as -layin5 a %es2 cric7e2 series a5ains2 23e Aus2ralian cric7e2 2eam a2 23e 2ime $0 23e ad#. Als$ in 2010, Yum! si5ned a namin5 ri532s deal 1i23 23e *$uis4ille Arena Au23$ri2y 0$r *$uis4illeAs ne1 d$1n2$1n arena, 13ic3 $-ened $n Oc2$6er 10 $0 23a2 year as 23e ?F+ Yum! +en2er. C&,-,+,*$ E(8,&.($2(-'0 +.(+2&(*

?F+ in 23e !S 3as 6een accused 6y 9reen-eace $0 a lar5e des2ruc2i$n $0 23e Ama8$n )ain0$res2, 6ecause 23e su--ly $0 s$y used 0$r c3ic7en 0$$d 23a2 ?F+ recei4es 0r$m +ar5ill 3as 6een 2raced 6ac7 2$ 23e Eur$-ean ?F+. +ar5ill 3as re-$r2edly 6een e/-$r2in5 s$y ille5ally 0$r se4eral years. %3e 9reen-eace $r5ani8a2i$n researc3ed 23e issue and 6r$u532 i2 2$ 23e a22en2i$n $0 23e -aren2 c$m-any Y!"! Brands, Inc. %3e -aren2 c$m-any denied 23e ille5al $-era2i$n, and said 23a2 23eir su--ly $0 s$y is 5r$1n in -ar2s $0 Bra8il. 9reen-eace 3as called $n ?F+ 2$ s2$- -urc3asin5 s$y 0r$m +ar5ill, 2$ a4$id c$n2ri6u2in5 2$ 23e des2ruc2i$n $0 23e Ama8$n. T&')2$'&5 ),*3#-2* In 1IH1, Sanders sued 'eu6lein Inc., ?F+As -aren2 c$m-any a2 23e 2ime, $4er 23e alle5ed misuse $0 3is ima5e in -r$m$2in5 -r$duc2s 3e 3ad n$2 3el-ed de4el$-. In 1IH>, 'eu6lein Inc. unsuccess0ully sued Sanders 0$r li6el a02er 3e -u6licly re0erred 2$ 23eir 5ra4y as Uslud5eU 1i23 a U1all-a-er 2as2eU. In "ay 200H, ?F+ (9rea2 Bri2ain# reKues2ed 23a2 %an 'ill Inn, in 23e Y$r7s3ire &ales, N$r23 Y$r7s3ire, !? re0rain 0r$m usin5 23e 2erm AFamily Feas2A 2$ descri6e i2s +3ris2mas menu, al23$u53 23is -r$6lem 1as Kuic7ly res$l4ed 1i23 23e -u6 6ein5 all$1ed 2$ c$n2inue use $0 23e 2erm. 4'72* '() 9.&5,(7 +.(),-,.(*

Balm$ral ?F+ 1$r7ers and allies -ic7e2in5 23e s2$re

In Ne1 <ealand, ?F+ y$u23 1$r7ers earn N<G10.1D an 3$ur. S2a00 a2 23e Balm$ral, Auc7land s2$re 1en2 $n s2ri7e 0$r 21$ 3$urs $n &ecem6er D, 200> a02er )es2auran2 Brands, 23e 0ranc3ise 3$lder, $00ered n$ 1a5e increase in c$n2rac2 ne5$2ia2i$ns. In "arc3 200E, )es2auran2 Brands a5reed 2$ -3ase $u2 y$u23 ra2es in Ne1 <ealand, al23$u53 n$ da2e 1as se2. "any s2$res in 1es2ern +anada are uni$ni8ed 1i23 23e +anadian Au2$ ;$r7ers, and as a resul2 many n$n-0ranc3ise s2$res in 1es2ern +anada -ay 3i53er 23an minimum 1a5e. A(,$'0 &,76-*

(r$2es2ers dem$ns2ra2in5 $u2side a ?F+ res2auran2 in )$yal Oa7, "ic3i5an Since 200D, animal ri532s and 1el0are $r5ani8a2i$ns, led 6y (e$-le 0$r 23e E23ical %rea2men2 $0 Animals ((E%A#, 3a4e 6een -r$2es2in5 ?F+.s 2rea2men2 $0 23e animals used 0$r i2s -r$duc2s. %3ese 5r$u-s claim 23a2 23e rec$mmenda2i$ns $0 23e ?F+ Animal ;el0are Ad4is$ry +$uncil 3a4e 6een i5n$red. Adele &$u5lass, a 0$rmer mem6er $0 23e c$uncil, said in an SE+ 0ilin5 re-$r2ed $n 6y 23e C%icago Times, 23a2 ?F+ Une4er 3ad any mee2in5s. %3ey ne4er as7ed any ad4ice, and 23en 23ey 2$u2ed 2$ 23e -ress 23a2 23ey 3ad 23is animal-1el0are ad4is$ry c$mmi22ee. I 0el2 li7e I 1as 6ein5 used.U ?F+ res-$nded 6y sayin5 23e c3ic7ens used in i2s -r$duc2s are 6$u532 0r$m su--liers li7e (erdue Farms, %ys$n F$$ds, and (il5rimAs (ride, and 23a2 23ese su--liers are r$u2inely m$ni2$red 0$r animal 1el0are 4i$la2i$ns. Se4eral (E%A underc$4er in4es2i5a2i$ns and 4ide$s $0 23ese and $23er ?F+ su--liers -ur-$r2in5 2$ s3$1 c3ic7ens 6ein5 6ea2en, ri--ed a-ar2, and 23r$1n a5ains2 1alls c$n2radic2 ?F+.s claims. (E%A 3as cri2icised s$me $0 23e -rac2ices $0 c3ic7en 6reeders, suc3 as 6ea7 2rimmin5 and $4ercr$1din5, 6u2 ?F+ says i2s su--liers mee2s !? le5al reKuiremen2s. %3e &e-ar2men2 0$r En4ir$nmen2, F$$d and )ural A00airs rec$mmends a ma/imum s2$c7in5 densi2y $0 DO 75Car$und D0 c3ic7ensC-er sKuare me2re, and say 23a2 in circums2ances 13ere 6ea7 2rimmin5 needs 2$ 6e carried $u2 2$ -re4en2 23e 6irds inMurin5 eac3 $23er, $nly $ne 23ird $0 23e 6ea7 s3$uld 6e 2rimmed Umeasured 0r$m 23e 2i- 2$1ards 23e en2rance $0 23e n$s2rilsU. (E%A s2a2es 23a2 23ey 3a4e 3eld m$re 23an 12,000 dem$ns2ra2i$ns a2 ?F+ $u2le2s since 200D 6ecause $0 23is alle5ed mis2rea2men2 $0 c3ic7ens 6y ?F+ su--liers.

In @une 200F, ?F+ +anada a5reed 2$ (E%AAs demands 0$r 6e22er 1el0are s2andards, includin5 0a4$rin5 su--liers 13$ use c$n2r$lled-a2m$s-3ere 7illin5 (+A?# $0 c3ic7ens, and $23er 1el0are s2andards as 1ell as in2r$ducin5 a 4e5an sand1ic3 a2 E>Y $0 i2s $u2le2s. (E%A 3as called $00 i2s cam-ai5n a5ains2 ?F+ +anada, 6u2 c$n2inues 2$ dem$ns2ra2e a5ains2 ?F+ else13ere in 23e 1$rld. H/7,2(2 ZIn Fe6ruary 200H, a ?F+J%ac$ Bell $u2le2 in Ne1 Y$r7 +i2y 1as 0$und 2$ 6e ra2 in0es2ed. A 4ide$ s3$1in5 23e ra2s runnin5 1ild inside 23e res2auran2 1as s3$1n $n 2ele4isi$n ne1s 6ulle2ins ar$und 23e 1$rld, as 1ell as dissemina2ed $n 23e in2erne2 4ia si2es suc3 as Y$u%u6e. Z%1$ ?F+ $u2le2s in Sydney, Aus2ralia, 1ere 0ined rec$rd am$un2s in 200I 0$r 3a4in5 un3y5ienic 0$$d -re-ara2i$n areas. Ins-ec2$rs 0$und layers $0 5rease and dir2, as 1ell as e4idence $0 4ermin. %3e ?F+ s2$res 3ad 6een re-ea2 $00enders, and 3ad i5n$red -re4i$us 1arnin5s 2$ 7ee- 23eir res2auran2s clean. %3ey 1ere c3ar5ed 1i23 11 6reac3es $0 0$$d 3y5iene la1s. ZIn 200I, a ?F+ $u2le2 in *eices2er SKuare, *$nd$n 1as c3ar5ed 1i23 1D 0$$d 3y5iene c3ar5es 6y $00icials 0r$m ;es2mins2er +$uncil, claimin5 a m$use 1as seen runnin5 acr$ss 23e 0l$$r and 0lies 6u88ed ar$und 23eir 3eads a2 23e -remises. ZA c$ur2 case in Au5us2 2010 re4ealed -$$r 3y5iene a2 a ?F+ $u2le2 in 23e su6ur6 $0 ,illa1$$d in Sydney, Aus2ralia. ?F+ s2a00 admi22ed 2$ 23e c$ur2 23a2 23ey 1$uld dr$c$$7ed c3ic7en -ieces $n 23e 0l$$r, and indul5e in 0$$d 0i532s usin5 0renc3 0ries and c3ic7en -ieces. %3e c$ur2 1as 2$ld 23a2 s2a00 did n$2 1as3 23eir 3ands 6e21een 3andlin5 ra1 c3ic7en 6l$$d, and ser4in5 c$$7ed c3ic7en -ieces 2$ cus2$mers. An 11-year-$ld 5irl launc3ed le5al ac2i$n a5ains2 23e ?F+ $u2le2, claimin5 s3e cau532 salm$nell$sis a02er ea2in5 a %1is2er a2 23e s2$re, 13ic3 s3e says le02 3er 1i23 6rain dama5e and Kuadri-le5ia. ?F+ denied 23e 5irlAs illness 1as caused 6y i2s 0$$d.

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+$un2ries 1i23 ?F+ res2auran2s ?ey Blue +$un2ries curren2ly 1i23 ?F+ res2auran2s

!,::' H#-

!,::' H#- (c$r-$ra2ely 7n$1n as !,::' H#-, I(+.# is an American res2auran2 c3ain and in2erna2i$nal 0ranc3ise 23a2 $00ers di00eren2 s2yles $0 -i88a al$n5 1i23 side dis3es includin5 -as2a, 6u00al$ 1in5s, 6reads2ic7s, and 5arlic 6read. (i88a 'u2 is a su6sidiary $0 Yum! Brands, Inc. (23e 1$rldAs lar5es2 res2auran2 c$m-any# 1i23 a--r$/ima2ely DO,001 res2auran2s, deli4eryJcarry-$u2 l$ca2i$ns, and 7i$s7s in 100 c$un2ries.
Currently based in 'ddison Te/as 0a northern suburb of 1allas2 3i44a Hut is relocatin! its head5uarters to 6e!acy 7ffice 3ark in nearby 3lano when the lease on its current buildin! which it has occupied since 1995 e/pires on 1ecember #1 2$1$%
o

C.(+23- '() ;.&$'-

(i88a 'u2 s2$re (1i23 dis2inc2i4e r$$0# in A23ens, O3i$ 2y-ical $0 !.S. (i88a 'u2 res2auran2s (i88a 'u2 is s-li2 in2$ se4eral di00eren2 res2auran2 0$rma2sL 23e $ri5inal 0amily-s2yle dine-in l$ca2i$nsL s2$re 0r$n2 deli4ery and carry-$u2 l$ca2i$nsL and 3y6rid l$ca2i$ns 23a2 $00er carry-$u2, deli4ery, and dine-in $-2i$ns. "any 0ull-si8e (i88a 'u2 l$ca2i$ns $00er lunc% .u&&et, 1i23 Uall-y$u-can-ea2U -i88a, salad, 6read s2ic7s, and a s-ecial -as2a. Addi2i$nally, (i88a 'u2 als$ 3as a num6er $0 $23er 6usiness c$nce-2s 23a2 are di00eren2 0r$m 23e s2$re 2y-eL (i88a 'u2 UBis2r$U l$ca2i$ns are U)ed )$$0Us 13ic3 $00er an e/-anded menu and sli532ly m$re u-scale $-2i$ns. U(i88a 'u2 E/-ressU and U%3e 'u2U l$ca2i$ns are 0as2 0$$d res2auran2s. %3ey $00er a limi2ed menu 1i23 many -r$duc2s n$2 0$und a2 2radi2i$nal (i88a 'u2s. %3ese 2y-e $0 s2$res are $02en -aired in a c$l$ca2ed l$ca2i$n 1i23 a si6lin5 6rand suc3 as ;in5 S2ree2, ?F+ $r %ac$

Bell, and are als$ 0$und $n c$lle5e cam-uses, 0$$d c$ur2s, 23eme -ar7s, and in s2$res suc3 as %ar5e2.

HISTORY

%3e -laKue $n 23e 0irs2 (i88a 'u2 6uildin5 13ic3 1as s$me2imes seen $n 23e 6$/. I2 1as s3$1n 0r$m 1IH0 2$ 1IF>. "ain ar2icle 'is2$ry $0 (i88a 'u2 (i88a 'u2 1as 0$unded in 1I>F 6y 6r$23ers &an and Fran7 +arney in 23eir 3$me2$1n $0 ;ic3i2a, ?ansas. ;3en a 0riend su55es2ed $-enin5 a -i88a -arl$r, 23ey a5reed 23a2 23e idea c$uld -r$4e success0ul, and 23ey 6$rr$1ed GE00 0r$m 23eir m$23er 2$ s2ar2 a 6usiness 1i23 -ar2ner @$3n Bender. )en2in5 a small 6uildin5 a2 >0D S$u23 Blu00 in d$1n2$1n ;ic3i2a and -urc3asin5 sec$nd3and eKui-men2 2$ ma7e -i88as, 23e +arneys and Bender $-ened 23e 0irs2 U(i88a 'u2U res2auran2L $n $-enin5 ni532, 23ey 5a4e -i88a a1ay 2$ enc$ura5e c$mmuni2y in2eres2. %3ey c3$se 23e name U(i88a 'u2U since 23e si5n 23ey -urc3ased $nly 3ad en$u53 s-ace 0$r nine c3arac2ers and s-aces. Addi2i$nal res2auran2s 1ere $-ened, 1i23 23e 0irs2 0ranc3ise uni2 $-enin5 in 1I>I in %$-e7a, ?ansas. %3e $ri5inal (i88a 'u2 6uildin5 1as la2er rel$ca2ed 2$ 23e ;ic3i2a S2a2e !ni4ersi2y cam-us.

(i88a 'u2As -r$2$2y-e 4ersi$n $0 a res2auran2 (1I>FN1IE1# a2 ;ic3i2a S2a2e !ni4ersi2y. %3is 1as $nly used a2 0$ur -r$2$2y-e (i88a 'u2 l$ca2i$ns. %3ere are $nly a 0e1 menu i2ems $n 23is 4ersi$n. &an and Fran7 +arney s$$n decided 23a2 23ey needed 2$ 3a4e a 5$$d s2andard ima5e. %3e +arney 6r$23ers c$n2ac2ed ;ic3i2a arc3i2ec2 )ic3ard &. Bur7e, 13$ desi5ned 23e dis2inc2i4e mansard r$$0 s3a-e and s2andardi8ed lay$u2, 3$-in5 2$ c$un2er c$m-e2i2i$n 0r$m S3a7eyAs (i88a, a c3ain 23a2 1as e/-andin5 $n 23e 1es2 c$as2. %3e 0ranc3ise ne21$r7 c$n2inued 2$ 5r$1 23r$u53 0riends and 6usiness ass$cia2es, and 6y 1IEO a uniKue s2andardi8ed 6uildin5 a--earance and lay$u2 1as es2a6lis3ed 0$r 0ranc3ised and c$m-any$1ned s2$res, crea2in5 a uni4ersal l$$7 23a2 cus2$mers easily rec$5ni8ed. By 1IH2, 1i23 D1O s2$res na2i$n1ide, (i88a 'u2 1en2 -u6lic $n 23e Ne1 Y$r7 S2$c7 E/c3an5e under 23e s2$c7 2ic7er sym6$l NYSE (I<. In 1IHF, (i88a 'u2 1as acKuired 6y (e-sic$, 13$ la2er als$ 6$u532 ?F+ and %ac$ Bell. In 1IIH, 23e 23ree res2auran2 c3ains 1ere s-un $00 in2$ %ric$n, and in 2001 M$ined 1i23 *$n5 @$3n Sil4erAs and AB; )es2auran2s 2$ 6ec$me Yum! Brands. %3e $ldes2 c$n2inu$usly $-era2in5 (i88a 'u2 in 23e 1$rld is in "an3a22an, ?ansas, in a s3$--in5 and 2a4ern dis2ric2 7n$1n as A55ie4ille near ?ansas S2a2e !ni4ersi2y. %radi2i$nally, (i88a 'u2 3as 6een 7n$1n 0$r i2s am6iance as muc3 as -i88a. ,in2a5e U)ed )$$0U l$ca2i$ns can 6e 0$und 23r$u53$u2 23e !ni2ed S2a2es, and Kui2e a 0e1 e/is2 in 23e !? and Aus2ralia. E4en s$, many suc3 l$ca2i$ns $00er deli4eryJcarry$u2 ser4ice. %3is 6uildin5 s2yle 1as c$mm$n in 23e 1IE0s and 1IH0s. %3e name U)ed )$$0U is s$me13a2 anac3r$nis2ic n$1, since many l$ca2i$ns 3a4e 6r$1n r$$0s. &$8ens $0 U)ed )$$0sU 3a4e cl$sed $r 6een rel$ca2edJre6uil2. "any U)ed )$$0U 6ranc3es 3a4e 6eer i0 n$2 a 0ull 6ar, music 0r$m a Mu7e6$/, and s$me2imes an arcade. In 23e 1IF0s, 23e c$m-any m$4ed in2$ $23er success0ul 0$rma2s includin5 deli4eryJcarry$u2 and 23e 0as2 0$$d UE/-ressU m$del.

!&.)#+-*

(i88a 'u2 in San2ia5$, +3ile. (i88a 'u2 sells US2u00ed +rus2U -i88a, 1i23 23e $u2erm$s2 ed5e 1ra--ed ar$und a c$il $0 m$88arella c3eeseL U'and-%$ssed,U m$re li7e 2radi2i$nal -i88eria crus2sL U%3in AN +ris-yU, a 23in, cris-y d$u53 13ic3 1as (i88a 'u2As $ri5inal s2yleL U&i--inA S2ri-s -i88aU, a -i88a cu2 in2$ small s2ri-s 23a2 can 6e di--ed in2$ a num6er $0 saucesL and U%3e Ed5e -i88a,U 13ere 23e 2$--in5s nearly reac3 2$ 23e ed5e $0 23e -i88a. %3ere 1as als$ 0$rmerly a crus2 23a2 1as n$2 as 23ic7 as (i88a 'u2As -an -i88a, and n$2 as 23in as i2s 23in crus2. %3is crus2 1as used $n 23e Full '$use :* -i88a and disc$n2inued in 200H. (i88a 'u2 e/-erimen2s 1i23 ne1 -r$duc2s 0reKuen2ly, 1i23 less success0ul $nes 6ein5 disc$n2inued. %3ese include 23e ini2ially -$-ular 21$-0$$2 6y $ne-0$$2 sKuare cu2 -i88a Bi50$$2, 23e 1EU Bi5 Ne1 Y$r7er, made 1i23 a s1ee2 sauce, 23e +3ica5$ &is3 (i88a and Sicilian -i88a, 23e la22er als$ $00ered in 200E as *asa5na (i88a. O23er -r$duc2s (i88a 'u2 3as $00ered are 23e U(A8$neU, (i88a 'u2As 4ersi$n $0 23e cal8$neL 23e +3eesy Bi2es -i88a, similar 2$ 23e S2u00ed +rus2 -i88a e/ce-2 23e crus2 3as 6een di4ided in2$ 2F 6i2e-si8ed -ieces 23a2 can 6e -ulled a-ar2L and 23e Insider -i88a, 13ere a layer $0 c3eese is in 6e21een 21$ layers $0 d$u53. An$23er limi2ed 2ime $00er 1as a &$u6le &ee- -i88a 1i23 d$u6le 23e 2$--in5s and >0Y m$re c3eese, 1i23 23e crus2 1ra--ed $4er 23e 2$- 2$ 3$ld in all 23e 2$--in5s. In 1IF> (i88a 'u2 in2r$duced 23e (ria88$, a 21$-crus2ed I2alian -ie 23a2 resem6led a dee--dis3 -i88a. ,arie2ies included (ria88$ "ilan$, a 6lend $0 I2alian sausa5e, -e--er$ni, 6ee0, -$r7 0illin5s, a 3in2 $0 6ac$n, m$88arella and c3eddar c3eeseL (ria88$ Fl$ren2ine, a li532 6lend $0 0i4e c3eeses 1i23 3am and a 2$uc3 $0 s-inac3, and (ria88$ )$ma, s2u00ed 1i23 -e--er$ni, mus3r$$ms, I2alian sausa5e, -$r7 0illin5, $ni$ns, m$88arella and c3eddar c3eese. %3e d$u6le-crus2ed -ie 1as 2$--ed 1i23 a layer $0 2$ma2$ sauce and mel2ed c3eese. %3e (ria88$ 1as in2r$duced 6y a G1> milli$n ad4er2isin5 cam-ai5n, 6u2 -r$4ed 2$$ la6$r-in2ensi4e and 1as rem$4ed 0r$m 23e menu se4eral years la2er.

Bu00al$ 1in5s &e-endin5 $n 23e indi4idual res2auran2 si8e, (i88a 'u2s als$ may $00er -as2a dinners suc3 as s-a53e22i and Ca*atini N a mi/2ure $0 +a4a2elli (s3ells#, )$2ini (s-irals#, and )$2elle (13eels#.

(i88a 'u2 Bis2r$ c$nce-2 l$ca2i$n l$ca2ed in Indiana-$lis. A ne1, u-scale c$nce-2 1as un4eiled in 200O, called (i88a 'u2 I2alian Bis2r$. !n4eiled a2 0i02y l$ca2i$ns na2i$n1ide, 23e Bis2r$ is similar 2$ a 2radi2i$nal (i88a 'u2, e/ce-2 23a2 ne1, I2alian 23emed dis3es are $00ered, suc3 as -enne -as2a, c3ic7en -$m$d$r$, 2$as2ed sand1ic3es and $23er 0$$ds. Ins2ead $0 6lac7, 13i2e, and red, Bis2r$ l$ca2i$ns 0ea2ure a 6ur5undy and 2an m$2i0. (i88a 'u2 Bis2r$s s2ill ser4e 23e c3ainAs 2radi2i$nal -i88as and sides as 1ell. In s$me cases, (i88a 'u2 3as re-laced a U)ed )$$0U l$ca2i$n 1i23 23e ne1 c$nce-2. A ne1 4ersi$n $0 (i88a 'u2 -i88a, named (i88a "ia 13ic3 is li532ly 2$--ed, 1as in2r$duced in 200H. %3e -r$duc2 is aimed a2 23e c$s2 sensi2i4e c$nsumer se5men2 and is -riced similarly 2$ 23e &$min$As >>> deal, 13ere eac3 -i88a is -riced a2 0i4e d$llars i0 -urc3ased in 6ul7 $0 23ree $r m$re. In c$m-aris$n, a (i88a 'u2 medium si8ed, 3and-2$ssed -e--er$ni -i88a is in2erna2i$nally -riced a2 G10.2O (&allas, %e/as 1J1J200I#. %3e (i88a "ia c$mes in $nly $ne si8e (medium# and e/2ra 2$--in5s ran5e 0r$m G1.2> 2$ G1.OI. One slice $0 (i88a 'u2 -e--er$ni (i88a "ia 1ei53s FD 5rams, 13ile $ne slice $0 (i88a 'u2 -e--er$ni 3and-2$ssed -i88a 1ei53s IE 5rams. (i88a 'u2 $n "ay I, 200F, crea2ed and s$ld in Sea22le, &en4er, and &allas, U%3e Na2uralU, a ne1 all-na2ural mul2i-5rain crus2 s1ee2ened 1i23 3$ney, a red sauce $0 $r5anic 2$ma2$es

and 2$--ed all-na2ural c3eese ($r 1i23 all-na2ural c3ic7en sausa5e and r$as2ed red -e--ers#. A medium Na2ural -i88a 1i23 $ne 2$--in5 s$ld 0$r GI.II. %3is 1as disc$n2inued $n Oc2$6er 2H, 200I in 23e &allas mar7e2. I2 3as since launc3ed a na2i$n1ide ad4er2isin5 cam-ai5n. Als$ in 200F, (i88a 'u2 crea2ed 23eir 6i55es2 -i88a e4er, 23e (an$rm$us (i88a. (i88a 'u2 in2r$duced 23e Bi5 Ea2 %iny (rice "enu $n @une 21, 200I. I2 0ea2ures ne1 (i88a )$lls, 23e (A<$ne (i88a, ne1 (ers$nal (an$rm$us (i88a, and 23e (i88a "ia (i88a, eac3 i2em s2ar2in5 a2 G>.00 $r G>.II. (i88a 'u2 in2r$duced s2u00ed -an -i88a $n Au5us2 2D, 200I 1i23 G10.II 0$r $ne 2$--in5s and s-ecial2y 0$r G1D.II. !nli7e re5ular s2u00ed crus2 c3eese is n$2 inside 23e crus2, Mus2 -ressed in2$ 23e -an crus2. (i88a 'u2 in2r$duced 23e Bi5 I2aly, a -i88a 23a2 is alm$s2 21$ 0ee2 l$n5 0$r G12.00, $n Au5us2 22, 2010. (i88a 'u2 recen2ly (2010# came under 0ire 13en i2s su--lier $0 -alm $il, Sinar "as, 1as e/-$sed 2$ 6e ille5ally slas3in5 and 6urnin5 23e (aradise F$res2s $0 Ind$nesia 2$ -lan2 -alm $il -lan2a2i$ns. %3is ac2 is dri4in5 na2i4e -e$-le $00 23eir land and 0$rcin5 $ran5u2ans and Suma2ran 2i5ers 2$ 23e 6rin7 $0 e/2inc2i$n.

A)82&-,*,(7

*$n5-2imeJ0$rmer (i88a 'u2 l$5$ (1IH0sN1III#. "any $lder l$ca2i$ns s2ar2ed 1i23 an earlier 1IE> l$5$ 6u2 1ere s$$n u-5raded. S$me l$ca2i$ns s2ill use 23is l$5$. (i88a 'u2As 4ery 0irs2 ad 1as U(u22 (u22 2$ (i88a 'u2U. I2 s2ar2s 1i23 a man a--aren2ly $rderin5 2a7e-$u2 and dri4in5 3is 1IE> "us2an5 @) 2$ (i88a 'u2, 13ile s$me $0 23e 2$1ns-e$-le s2ar2 c3asin5 3im. 'e -ic7s u- 3is -i88a and 5$es 2$ 3is 3$use, 13en all $0 23e -e$-le 13$ 1ere c3asin5 3im s2ar2 ea2in5 all 23e -i88a e/ce-2 23e man 13$ $rdered i2. Frus2ra2ed, 3e calls (i88a 'u2 a5ain.

!n2il early 200H, (i88a 'u2As main ad4er2isin5 sl$5an 1as U9a23er Ar$und 23e 5$$d s2u00U, and 1as UN$1 Y$uAre Ea2in5!U 0r$m 200F 2$ 200I. %3e ad4er2isin5 sl$5an is curren2ly UY$ur Fa4$ri2es. Y$ur (i88a 'u2.U (i88a 'u2 d$es n$2 3a4e an $00icial in2erna2i$nal masc$2, 6u2 a2 $ne 2ime, 23ere 1ere c$mmercials in 23e !ni2ed S2a2es called A%3e (i88a 'ead S3$1.A %3ese c$mmercials ran 0r$m 1IID 2$ 1IIH and 1ere 6ased l$$sely $n 23e "r. Bill s3$r2s 0r$m Saturday /ig%t ,i*e in 23e 1IH0s. %3e ads 0ea2ured a slice $0 -i88a 1i23 a 0ace made $u2 $0 2$--in5s called A(i88a 'eadA. In 23e 1IH0s (i88a 'u2 used 23e si5na2ure red r$$0 1i23 a M$lly man named U(i88a 'u2 (e2eU. (e2e 1as $n 23e 6a5s, cu-s, 6all$$ns and 3and -u--e2s 0$r 23e 7ids. In Aus2ralia durin5 23e "id 2$ la2e 1II0s, 23e ad4er2isin5 masc$2 1as a deli4ery 6$y named &$u5ie, 1i23 6$yis3 5$$d l$$7s 13$, u-$n deli4erin5 -i88a 2$ 3is 0a23er, 1$uld 3ear 23e ca2c3-3rase U'ereAs a 2i- 6e 5$$d 2$ y$ur m$23erU. (i88a 'u2 s-$ns$red 23e 1IFI 0ilm Back to t%e #uture Part --, and $00ered a 0ree -air $0 0u2uris2ic sun5lasses, 7n$1n as US$lar S3adesU, 1i23 23e -urc3ase $0 (i88a 'u2 -i88a. (i88a 'u2 als$ en5a5ed in -r$duc2 -lacemen2 1i23in 23e 0ilm i2sel0, 3a4in5 a 0u2uris2ic 4ersi$n $0 23eir l$5$ 1i23 23eir 2rademar7ed red 3u2 -rin2ed $n 23e side $0 a mylar de3ydra2ed -i88a 1ra--er in 23e "cFly 0amily dinner scene, and a--ear $n a s2$re0r$n2 in 'ill ,alley in 23e year 201>. %3e 1II0 NES 5ame Teenage utant /in0a Turtles --1 T%e Arcade (ame, came 1i23 a c$u-$n 0$r a 0ree -i88a. %3e 5ame 1as 0illed 1i23 (i88a 'u2 ad4er2isin5 and -i88a 23a2 1$uld re0ill 23e c3arac2erAs li0e. In 1IIO, &$nald %rum- and e/-1i0e I4ana %rum- s2arred in a c$mmercial. %3e endin5 $0 23e c$mmercial s3$1ed I4ana %rum- as7in5 0$r 23e las2 slice, 2$ 13ic3 &$nald re-lied, UAc2ually dear, y$uAre $nly en2i2led 2$ 3al0U, a -lay $n 23e c$u-leAs recen2 di4$rce. In 1II>, )in5$ S2arr s2arred in a (i88a 'u2 c$mmercial 13ic3 als$ 0ea2ured %3e "$n7ees. )us3 *im6au53 als$ s2arred in a (i88a 'u2 c$mmercial 23e same year, 13ere 3e 6$as2s 23a2 Un$6$dy is m$re ri532 23an me,U ye2 3e s2a2es 23a2 0$r 23e 0irs2 2ime 3e 1ill d$ s$me23in5 1r$n5, 13ic3 1as 2$ -ar2ici-a2e in (i88a 'u2As 23en Uea2in5 -i88a crus2 0irs2U cam-ai5n re5ardin5 23eir s2u00ed crus2 -i88as. (i88a 'u2 s-$ns$red 23e 0irs2 s-ace -i88a deli4ery in 2001 2$ 23e In2erna2i$nal S-ace S2a2i$n (ISS#, and -aid 0$r 23eir l$5$ 2$ a--ear $n a )ussian (r$2$n r$c7e2 in 2000, 13ic3 launc3ed 23e )ussian <4e8da m$dule. In Aus2ralia, 200E sa1 23e in2r$duc2i$n $0 a masc$2 in (i88a 'u2As ad4er2isin5 N U(i88a "u22U, a small d$5 13$ deli4ers -i88as. %3e masc$2 1as dum-ed a02er Mus2 21$ ads. Early 200H sa1 (i88a 'u2 m$4e in2$ se4eral m$re in2erac2i4e 1ays $0 mar7e2in5 2$ 23e c$nsumer. !2ili8in5 m$6ile -3$ne S"S 2ec3n$l$5y and 23eir "y'u2 $rderin5 si2e, 23ey aired se4eral 2ele4isi$n c$mmercials (c$mmencin5 Mus2 6e0$re 23e Su-er B$1l# c$n2ainin5 3idden 1$rds 23a2 4ie1ers c$uld 2y-e in2$ 23eir -3$nes 2$ recei4e c$u-$ns. O23er

inn$4a2i4e e00$r2s included 23eir U"yS-ace %edU cam-ai5n, 13ic3 2$$7 ad4an2a5e $0 23e -$-ulari2y $0 s$cial ne21$r7in5, and 23e 6ur5e$nin5 user-su6missi$n mar7e2in5 m$4emen2 4ia 23eir ,ice (residen2 $0 (i88a c$n2es2. (i88a 'u2 is als$ ad4er2ised in anime suc3 as Code (eass, aria'sama ga iteru, )arker T%an Black and Toaru Kagaku no Railgun, 23$u53 in 23e 2ransla2ed 4ersi$ns $0 Code (eass 23e l$5$ 1as rem$4ed, lea4in5 $nly 23e red r$$0 l$5$. As $0 Oc2$6er 200I, (i88a 'u2 is ad4er2isin5 i2s ;in5S2ree2 6rand $n a na2i$n1ide 6asis, 3a4in5 me2 i2s in2ernal reKuiremen2 $0 F0Y $0 s2$res 3a4in5 23e -r$duc2 a4aila6le. !'*-' H#-

(as2a 'u2 l$5$ (200FN-resen2# On A-ril 1, 200F, (i88a 'u2 in America sen2 emails 2$ cus2$mers ad4er2isin5 23a2 23ey n$1 $00er -as2a i2ems $n 23eir menu. %3e email (and similar ad4er2isin5 $n 23e c$m-anyAs 1e6si2e# s2a2ed U(as2a s$ 5$$d, 1e c3an5ed $ur name 2$ (as2a 'u2!U %3e name c3an5e 1as a -u6lici2y s2un2 3eld in c$nMunc2i$n 1i23 A-ril F$$lsA &ay, e/2endin5 23r$u53 23e m$n23 $0 A-ril, 1i23 23e c$m-anyAs &allas 3eadKuar2ers c3an5in5 i2s e/2eri$r l$5$ 2$ (as2a 'u2. %3is name c3an5e 1as als$ used 2$ -r$m$2e 23e ne1 %uscani (as2a line and ne1 (i88a 'u2 dine-in menu. %3e 0irs2 (as2a 'u2 ad4er2isemen2 3as 23e $ri5inal (i88a 'u2 res2auran2 6ein5 im-l$ded, and recrea2ed 1i23 a si5n sayin5 U(as2a 'u2U -laced $n 23e 6uildin5.

U(,-2) K,(7).$

(i88a 'u2 in S2ra20$rd-u-$n-A4$n, ;ar1ic7s3ire. In 23e !ni2ed ?in5d$m, (i88a 'u2 ann$unced i2 1$uld 6e c3an5in5 i2s name 2$ (as2a 'u2 in Oc2$6er 200F, si/ m$n23s a02er 23e !S AA-ril F$$lA 2rial. %3is 1as ann$unced as 6ein5 a 2em-$rary name c3an5e 2$ re0lec2 23e c3ainAs ne1 em-3asis $n 3eal23ier 0$$ds On @anuary

1I, 200I, (i88a 'u2 ann$unced 23a2 23e (as2a 'u2 2rial 3ad ended and 23a2 23e names $0 all s2$res -re4i$usly c$n4er2ed 2$ (as2a 'u2 1$uld 6e c$n4er2ed 6ac7 2$ (i88a 'u2, 0$ll$1in5 an $nline -$ll in 13ic3 F1Y c3$se 2$ 7ee- 23e (i88a 'u2 name. C.*-' R,+' In +$s2a )ica, aside 0r$m 23e (i88a 'u2 res2auran2s, 23ere is an$23er 6rand called U('& (i88a &eli4ered '$2 6y (i88a 'u2.U %3is 6rand is $nly 0$r 0$$d c$ur2s a2 malls and 0$r e/-ress deli4ery. %3is 1as crea2ed 2$ c$m-e2e $n 23e U0as2 0$$dU mar7e2 13ile res2auran2s 1ill c$ncen2ra2e in casual 0$$d. S.#-62'*- A*,'

Ne1 (i88a 'u2 l$5$ 23a2 is in use in S$u23eas2 Asia In S$u23eas2 Asia, aside 0r$m (i88a 'u2 res2auran2s, 23ere is a su6sidiary 6rand called U('& - (i88a &eli4ered '$2 6y (i88a 'u2,U $nly 0$r 0$$d c$ur2s a2 malls and 0$r e/-ress deli4ery. (i88a 4arie2ies are c3an5ed 2$ sui2 l$cal 2as2esL -as2a -r$duc2s 1i23 similarly Asian 2as2es are als$ s$ld in Ind$nesia. In Sin5a-$re, (i88a 'u2 3a4e s$ld a 6a7ed rice dis3 called +urry <a88le. N#-&,-,.(

In 23e !?, (i88a 'u2 3as 6een cri2ici8ed 0$r 23e 3i53 sal2 c$n2en2 $0 i2s meals, s$me $0 13ic3 1ere 0$und 2$ c$n2ain m$re 23an 21ice 23e daily rec$mmended am$un2 $0 sal2 0$r an

adul2. %3e mea2s 23a2 c$nsumers demand 0$r -i88a 2$--in5s (-e--er$ni, sausa5e, 6ac$n, e2c.# are, li7e1ise, sal2y and 0a22y mea2s. %3ere 3a4e als$ 6een c$ncerns raised $4er 0$$d -r$duc2i$n -rac2ices as due 2$ 23e 3i53 le4el $0 0r$8en -r$duce 6ein5 used. T'+. B200

T'+. B200 is an American c3ain $0 0as2-0$$d res2auran2s 6ased in Ir4ine, +ali0$rnia. A su6sidiary $0 Yum! Brands, Inc., 23ey ser4e a 4arie2y $0 %e/-"e/0$$ds includin5 2ac$s, 6urri2$s, Kuesadillas, nac3$s, $23er s-ecial2y i2ems, and a 4arie2y $0 U,alue menuU i2ems. %ac$ Bell ser4es m$re 23an 2 6illi$n cus2$mers eac3 year in m$re 23an >,F00 res2auran2s in 23e !.S., m$re 23an F0 -ercen2 $0 13ic3 are $1ned and $-era2ed 6y inde-enden2 0ranc3isees.

%3e classic %ac$ Bell l$5$ used 0r$m 1IF> 2$ 1IIO. I2 is s2ill in use a2 many $lder %ac$ Bell l$ca2i$ns.

%ac$ BellAs $ri5inal res2auran2 desi5n 1i23 i2s 0irs2 l$5$ si5n in ;ausau, ;isc$nsin. &em$lis3ed >JOJ10

%ac$ BellAs curren2 res2auran2 desi5n. T'+. B200 is an American res2auran2 c3ain 6ased in Ir4ine, +ali0$rnia. A su6sidiary $0 Yum! Brands, Inc., i2 s-eciali8es in "e/ican-s2yle 0$$d and Kuic7 ser4ice. %ac$ Bell ser4es 2ac$s, 6urri2$s, Kuesadillas, nac3$s, $23er s-ecial2y i2ems and a 4arie2y $0 U,alue "enuU i2ems.
Taco 8ell ser&es more than 2 billion consumers each year in more than 5 ,$$ restaurants in the )%S% of which more than ,$ percent are owned and operated by independent franchisees%

H,*-.&/ F.#(),(7 '() 7&.9-6

%ac$ Bell 1as 0$unded 6y 9len Bell, a 0$rmer "arine, 13$ $-ened 3is 0irs2 res2auran2, named BellAs &ri4e-in, in San Bernardin$, +ali0$rnia a2 23e a5e $0 2>. O4er 23e ne/2 0e1 years Bell $1ned and $-era2es a num6er $0 res2auran2s in s$u23ern +ali0$rnia includin5 0$ur called El %ac$. Bell s$ld 23e El %ac$s 2$ 3is -ar2ner and 6uil2 23e 0irs2 %ac$ Bell in &$1ney, +ali0$rnia in 1IE2. ?ermi2 Bec7y, a 0$rmer *$s An5eles -$lice $00icer, 6$u532 23e 0irs2 %ac$ Bell 0ranc3ise 0r$m 9len Bell in 1IEO and l$ca2ed i2 in %$rrance, +ali0$rnia. %3e c$m-any 5re1 ra-idly and 6y 1IEH 23e 10023 res2auran2 $-ened a2 O00 S$u23 Br$$73urs2 in Ana3eim, +ali0$rnia. In 1IHF (e-si+$ -urc3ased %ac$ Bell 0r$m 9len Bell.

T'+. B200 E<3&2**

In 1II1, %ac$ Bell $-ened 23e 0irs2 %ac$ Bell E/-ress in San Francisc$, +ali0$rnia. %3is c$nce-2 is a reduced-si8e res2auran2 1i23 a limi2ed menu (-rimarily i2ems -riced under G1#, mean2 2$ em-3asi8e 4$lume. %ac$ Bell E/-ress l$ca2i$ns $-era2e -rimarily inside c$n4enience s2$res, 2ruc7 s2$-s, s3$--in5 malls, and air-$r2s. C.(-&.82&*,2*

In N$4em6er 200E, %ac$ Bell made l$cal 3eadlines 13en 22 cus2$mers 1ere sic7ened 6y 23e E2 coli 6ac2eria. %3e 6ac2eria 1as 2raced 2$ 23ree Ne1 @ersey res2auran2s. ;3ile s$me -e$-le 1ere 3$s-i2ali8ed, n$ne 1ere se4erely 3armed. In Fe6ruary 200H, %ac$ Bell a5ain made 3eadlines 13en a %ac$ BellJ?F+ res2auran2 in "an3a22an 1as $4errun 6y ra2sL 0$$2a5e $0 23e r$den2s scurryin5 a6$u2 1ere s3$1n $n ne1s s3$1s ar$und 23e 5l$6e. %3e l$ca2i$n 1as cl$sed 6y $rder $0 23e &e-ar2men2 $0 'eal23 un2il 23e issues 1ere res$l4ed. %3e $u26rea7 -r$m-2ed 23e cl$sure $0 se4eral addi2i$nal %ac$ Bell res2auran2s 23r$u53$u2 23e N$r23eas2ern !ni2ed S2a2es. In Au5us2 2010, %ac$ Bell 1as lin7ed 2$ 21$ $u26rea7s $0 Salm$nella. A2 leas2 1>> -e$-le in 21 s2a2es 6ecame ill as a resul2 $0 ea2in5 c$n2amina2ed 0$$d. M2(#

%1$ 6asic Ucrunc3yU c$rn s3ell 6ee0 %ac$ Bell 2ac$s B.&)2& B200 In 1IIH, (e-si+$ e/-erimen2ed 1i23 a ne1 U0res3 5rillU c$nce-2, $-enin5 a2 leas2 $ne B$rder Bell res2auran2 in "$un2ain ,ie1, +ali0$rnia $n El +amin$ )eal (S) F2#. In

addi2i$n 2$ a su6se2 $0 23e re5ular %ac$ Bell menu, B$rder Bell $00ered "e/ican-ins-ired i2ems li7e 23$se a4aila6le 0r$m +3e4ys Fres3 "e/ res2auran2s (23en $1ned 6y (e-si+$#, suc3 as +3e4ys si5na2ure s1ee2 c$rn 2amali2$ -uddin5 and a 0res3 salsa 6ar. R2)#+-,.( .; -&'(* ;'-* As $0 A-ril, 200H, %ac$ Bell 3ad s1i2c3ed 2$ 8er$ 2rans 0a2 0ryin5 $il in all $0 i2s !S sin5le-6randed l$ca2i$ns.

.0+'(. T'+. '() .0+'(. D.#102 B22; B#&&,-. %ac$ Bell re4ealed in @une 200I 23a2 i2 1ill 6e addin5 2$ i2s main menu 23e ,$lcan$ &$u6le Bee0 Burri2$ and 23e ,$lcan$ %ac$, a 0$rmer limi2ed-2ime i2em. C#3+'52* '() S$..-6,2*

I2 1as re-$r2ed in Oc2$6er 200I 23a2 23e c3ain 3as 6een 2es2in5 sm$$23ies, mini-snac7s, and $23er i2ems. A Muice 6ar 3as 6een ins2alled in s$me res2auran2s al$n5 1i23 a dis-lay c$n2ainin5 cu-ca7es and $23er snac7s. A)82&-,*,(7

%ac$ BellAs 3eadKuar2ers in Ir4ine, +ali0$rnia In "arc3 2001, %ac$ Bell ann$unced a -r$m$2i$n 2$ c$incide 1i23 23e re-en2ry $0 23e "ir s-ace s2a2i$n. %3ey 2$1ed a lar5e 2ar5e2 $u2 in2$ 23e (aci0ic Ocean, ann$uncin5 23a2 i0 23e 2ar5e2 1as 3i2 6y a 0allin5 -iece $0 "ir, e4ery -ers$n in 23e !ni2ed S2a2es 1$uld 6e en2i2led 2$ a 0ree %ac$ Bell 2ac$. %3e c$m-any 6$u532 a si8a6le insurance -$licy 0$r 23is 5am6le. N$ -iece $0 23e s2a2i$n s2ruc7 23e 2ar5e2. In 200O, a l$cal %ac$ Bell 0ranc3isee 6$u532 23e namin5 ri532s 2$ 23e B$ise S2a2e (a4ili$n in B$ise, Ida3$ and renamed 23e s2adium %ac$ Bell Arena. In 200E, %ac$ Bell 1as a ES(N -ar2ner $0 i2s c$4era5e $0 23e 200E FIFA ;$rld +u-. In 200H, %ac$ Bell $00ered 23e US2eal a Base, S2eal a %ac$U -r$m$2i$nCi0 any -layer 0r$m ei23er 2eam s2$le a 6ase in 23e 200H ;$rld Series 23e c$m-any 1$uld 5i4e a1ay 0ree 2ac$s 2$ e4ery$ne in 23e !ni2ed S2a2es in a cam-ai5n similar 2$ 23e "ir -r$m$2i$n, al6ei2 1i23 a muc3 3i53er li7eli3$$d $0 6ein5 reali8ed. A02er @ac$6y Ells6ury $0 23e B$s2$n )ed S$/ s2$le a 6ase in 9ame 2, 23e c$m-any -aid $u2 23is -r$m$2i$n $n Oc2$6er D0, 200H. %3is -r$m$2i$n 1as used a5ain in 23e 200F ;$rld Series, 13en @as$n Bar2le22 $0 23e %am-a Bay )ays s2$le a 6ase durin5 9ame 1 a2 %r$-icana Field, 13ic3 1as -aid $u2 $n Oc2$6er 2F, 200F. %ac$ Bell s-$ns$rs a -r$m$2i$n a2 3$me 5ames 0$r 6$23 23e ($r2land %rail Bla8ers and 23e +le4eland +a4aliers in 13ic3 e4ery$ne in a22endance recei4es a c$u-$n 0$r a 0ree +3alu-a i0 23e 3$me 2eam sc$res 100 -$in2s $r m$re. In 200I, %ac$ Bell in2r$duced a music 4ide$ s2yle c$mmercial en2i2led, UI2As all a6$u2 23e )$$se4el2sU c$m-$sed and -r$duced 6y &anny de "a2$s a2 3is s2udi$ 0$r Am6er "usic $n 6e3al0 $0 &ra02F+B A5ency. Fea2urin5 ,arsi2y Fanclu6As B$66y Edner, 23e ra- music s2yle c$mmercial s3$1s a 5r$u- $0 0riends 5a23erin5 c3an5e as 23ey dri4e 2$1ard %ac$ Bell. %3e c$mmercial re-resen2s %ac$ BellAs 0irs2 0$ray in2$ m$4ie 23ea2er ad4er2isin5, 0ea2urin5 23e ad durin5 23e $-enin5 -re4ie1s $0 %rans0$rmers )e4en5e $0 23e Fallen and (u6lic Enemies as 1ell as screens in s$me m$4ie 23ea2er l$66ies.

On @uly 1, 200I, %ac$ Bell 3as re-laced 20-year s-$ns$r "c&$naldAs as 23e 0as2 0$$d -ar2ner $0 23e NBA. %ac$ Bell and 23e NBA a5reed $n a O year deal all$1in5 23em 2$ ad4er2ise $n AB+, %N% and ES(N, and NBA-23emed -r$m$2i$ns. In0$mercial salesman Billy "ays si5ned a deal in @une 200I 2$ s3$$2 in0$mercial-s2yle c$mmercials 0$r 23e c3ain, 1i23 0ilmin5 2$ 6e5in in Au5us2. 'is une/-ec2ed dea23 0r$m a 3ear2 a22ac7 $n @une 2F, 200I canceled 23$se -lans. On @uly 21, 200I, 9id5e2, 23e +3i3ua3ua 0ea2ured in %ac$ Bell ads in 23e la2e 1II0s, 1as eu23ani8ed a02er su00erin5 a s2r$7e. S3e 1as 1> years $ld. 200I c$mmercials 0$r 23e UFru2is2a Free8eU 0r$8en drin7 0ea2ure Sn$16all, an Ele$n$ra +$c7a2$$ n$2ed 0$r 3is a6ili2y 2$ dance 2$ 3uman music. In an e00$r2 2$ -r$m$2e 23eir G2 "eal &eals, %ac$ Bell s2ar2ed a Face6$$7 5r$u- in @une 2010 2$ c$llec2 si5na2ures $n a -e2i2i$n 23a2 a--eals 2$ 23e Federal )eser4e 2$ -r$duce m$re 21$-d$llar 6ills. O#-*,)2 -62 U(,-2) S-'-2* A#*-&'0,' %ac$ Bell 0irs2 $-ened in Aus2ralia in Se-2em6er 1IF1, 6u2 1as $rdered 2$ c3an5e i2s name a02er 23e $1ner $0 a l$cal res2auran2 success0ully sued 23em 0$r misleadin5 c$nduc2. %3e l$cal res2auran2 1as called A%ac$ BellAs +asaA and 3ad 6een $-era2in5 in Aus2ralia since 23e 1IH0s. %3e $1ner success0ully ar5ued 23a2 Sydneysiders 1$uld c$n0use 23e 2a7ea1ay c3ain 1i23 3is res2auran2, and 23is 1$uld dama5e 3is re-u2a2i$n. %ac$ Bell la2er $-ened in 1IIH in Aus2ralia 1i23 a s2$re in 23e cinema dis2ric2 $n 9e$r5e S2 in Sydney and la2er in 2002 1i23in a 0e1 ?F+ s2$res in 23e s2a2e $0 Ne1 S$u23 ;ales 6u2 6y 200>, 23e %ac$ Bell 6rand 1as -ulled $u2 $0 23e c$un2ry. C/3&#*

%ac$ Bell in +y-rus

A %ac$ Bell $-ened in +y-rus in &ecem6er 200I in *imass$l a2 23e "y"all. Fur23er res2auran2s are -lanned 2$ 6e $-ened 1i23in 23e ne/2 1F m$n23s (-r$6a6ly als$ in +y-rusA ca-i2al Nic$sia#. C6,('

%ac$ Bell 9randeAs *$5$ In 200D, Yum! Brands in2r$duced 23e %ac$ Bell 6rand in2$ (e$-leAs )e-u6lic $0 +3ina. %3e +3inese %ac$ Bell res2auran2s 1ere n$2 0as2-0$$d res2auran2s li7e $23er %ac$ Bells. Ins2ead, 23ey 1ere 0ull-ser4ice res2auran2s called T'+. B200 G&'()2 23a2 are m$re anal$5$us 2$ a "e/ican 5rill in 23e !ni2ed S2a2es. In addi2i$n 2$ 23e usual 2ac$ and 6urri2$s, %ac$ Bell 9rande als$ ser4ed $23er "e/ican cuisine li7e al6[ndi5as (mea26all s$u-#, 2$ma2ill$ 5rilled c3ic7en, 0aMi2as, and alc$3$lic drin7s suc3 as "ar5ari2as. %3e c3ain 3ad $-era2ed 23ree res2auran2s in +3ina, 21$ in S3en83en and $ne in S3an53ai. '$1e4er, 23e S3an53ai l$ca2i$n cl$sed a2 23e end $0 @anuary 200F. One l$ca2i$n in S3en83en cl$sed $n Fe6ruary 20, 200FL 23e sec$nd l$ca2i$n 0$ll$1ed s3$r2ly a02er, cl$sin5 $n "arc3 >, 200F. I+20'() %ac$ Bell in Iceland is $-era2ed as a -ar2 $0 23e ?F+ es2a6lis3men2 in 'a0nar0M\r]ur, su6ur6 $0 )ey7Ma4^7. I2 1as es2a6lis3ed in la2e 200E, a02er 23e de-ar2ure $0 23e !.S. Na4y 0r$m Na4al Air S2a2i$n ?e0la4i7. A sec$nd l$ca2i$n $-ened in 23e _r2`ns3\0]i -ar2 $0 )ey7Ma4i7 in N$4em6er 200F I(),' IndiaAs 0irs2 %ac$ Bell $u2le2 is in "an2ri sKuare mall, Ban5al$re. U(,-2) K,(7).$

%3e !ni2ed ?in5d$m 1as 23e 0irs2 Eur$-ean c$un2ry 1i23 a %ac$ Bell, al23$u53 i2 remains e/2remely di00icul2 0$r !? in3a6i2an2 2$ -a2r$nise a s2$re. In 1IFE a l$ca2i$n 1as $-ened in *$nd$n $n +$4en2ry S2ree2 (6e21een *eices2er SKuare and (iccadilly +ircus# 0$ll$1ed 6y a sec$nd l$ca2i$n in Earls +$ur2 near 23e EarlAs +$ur2 2u6e s2a2i$n. One $23er s2$re $-ened in !/6rid5e 6u2 all cl$sed in 23e mid 1II0s. In 1IIO 23e uni4ersi2y 0$$d -r$4ider +$m-ass ann$unced -lans 2$ $-en s2$res in i2s uni4ersi2y and c$lle5e si2es. '$1e4er $nly $ne s2$re 1as $-ened in Birmin53am !ni4ersi2y, n$ $23er s2$res 1ere $-ened and 23e Birmin53am si2e is n$1 cl$sed. %3ere is a2 leas2 $ne %ac$ Bell si2e in 23e !? in $-era2i$n a2 23e S2ra2e5ic Air +$mmand and !ni2ed S2a2es Air F$rce 6ases a2 )AF "ilden3all and )AF *a7en3ea23 6u2, c$mmensura2e 1i23 e/is2in5 securi2y c$n2r$ls, access is res2ric2ed 2$ rele4an2 ser4ice -ers$nnel. Yum! Brands ann$unced 23a2 i2 is c$nsiderin5 re$-enin5 %ac$ Bell l$ca2i$ns in 23e !ni2ed ?in5d$m as -ar2 $0 a lar5e -lanned e/-ansi$n in2$ Eur$-e, 1i23 2rial $u2le2s $-enin5 0irs2 in S-ain in early 200I. Yum! is 2a7in5 ad4an2a5e $0 23e recen2 recessi$n 13ic3 led 2$ increasin5 sales a2 $23er 0as2 0$$d $u2le2s, i2 als$ said 23a2 23ere is n$1 a 5rea2er a1areness $0 "e/ican 0$$d in 23e !? and 23a2 i2 can 6e success0ul 1i23 im-r$4ed menu $00erin5s and mar7e2in5. %3e 0irs2 ne1 s2$re $-ened a2 23e *a7eside S3$--in5 +en2re $n 2F @une 2010. %ac$ Bell recen2ly ann$unced $n Face6$$7 23a2 23ey 1ill 6e $-enin5 a sec$nd s2$re in Basild$n a2 23e end $0 N$4em6er. D.$,(,+'( R23#10,+

%3e &$minican )e-u6lic, (uer2$ )ic$, +$s2a )ica, +anada, and S-ain are 23e $nly c$un2ries 13ere %ac$ Bell $00ers Frenc3 0ries. 'a4in5 23is -r$duc2 in 2 4arie2ies Fies2a Fries (%$--ed Fries in S-ain# (*i7e Nac3$s Su-reme, c3an5in5 nac3$s 0$r 0ries# and re5ular Frenc3 0ries.

L.(7 J.6( S,082&=*, I(+.

A 2y-ical meal 0r$m *$n5 @$3n Sil4erAs. A -la22er 1i23 6a22ered and 0ried 0is3, 0renc3 0ries, 6a22ered 0ried s3rim-, 3us3-u--ies and c$lesla1

A c$-6randed ?F+ and *$n5 @$3n Sil4erAs res2auran2 in *a0aye22e, %ennessee

A c$-6randed *$n5 @$3n Sil4erAs and %ac$ Bell in ?en2, O3i$

Long John Silver's, Inc. is a )nited States*based fast*food restaurant that speciali4es in seafood% The name and concept were inspired by 9obert 6ouis Ste&enson"s book Treasure Island% :ts head5uarters are in 6ouis&ille Kentucky%

H,*-.&/ %3e 0irs2 res2auran2 1as $-ened in 1IEI in *e/in52$n, ?en2uc7y. (%3e $ri5inal l$ca2i$n, $n S$u23land &ri4e Mus2 $00 Nic3$las4ille )$ad, 1as -re4i$usly a sea0$$d res2auran2 named 23e +a-e +$dder, 13ic3 acc$un2s 0$r 23e +a-e +$d s2yle $0 *@S.s early c3ain res2auran2s.# !n2il i2s 6an7ru-2cy in 1IIF, *$n5 @$3n Sil4erAs 1as a -ri4a2ely $1ned c$r-$ra2i$n. %3e c3ain 6e5an as a di4isi$n $0 @erric$, Inc., 13ic3 als$ $-era2ed @erryAs )es2auran2s, a c3ain $0 0amily res2auran2s 13ic3 als$ 6e5an in *e/in52$n, and 1as 4ery similar 2$ Bi5 B$y res2auran2s. @erryAs 1as l$ca2ed in 23e "id1es2 and S$u23. ;3en 23e c$m-any 1as s$ld in 1IFI, 23e *$n5 @$3n Sil4erAs c$nce-2 3ad 0ar $u25r$1n 23e @erryAs c3ain. "$s2 $0 @erryAs OE remainin5 l$ca2i$ns 1ere c$n4er2ed 2$ &ennyAs 6y 23e ne1 $1ners, 1i23 a 3and0ul s2ayin5 under 23e $ri5inal name, usually 6ecause 23ere 1as already an e/is2in5 &ennyAs near6y. Only a d$8en $r s$, n$1 called J2&&/=* J-B./ R2*-'#&'(-*, are s2ill $-en in ?en2uc7y and s$u23ern Indiana. *@S s2$res 1ere lar5ely una00ec2ed 6y 23is m$4e. ("any $ri5inal *@S 0ranc3isees 1ere als$ $-era2$rs $0 @erryAs l$ca2i$ns.# Earlier res2auran2s 1ere 7n$1n 0$r 23eir +a-e +$d-s2yle 6uildin5s, 6lue r$$0s, small s2ee-les, and nau2ically-23emed dec$ra2i$ns suc3 as sea2s made 2$ l$$7 li7e nau2ical 0la5s. "$s2 early res2auran2s als$ 0ea2ured se-ara2e en2rance and e/i2 d$$rs, a c$rrid$r-li7e 1ai2in5 line area, 0$$d 3ea2ers 23a2 1ere 2rans-aren2 s$ cus2$mers c$uld see 23e 0$$d 1ai2in5 2$ 6e ser4ed, and a 6ell 6y 23e e/i2 13ic3 cus2$mers c$uld Urin5 i0 1e did i2 1ell.U "any $0 23ese 6uildin5s 3ad d$c7-li7e 1al71ays lined 1i23 -ilin5s and 23ic7 r$-es 23a2 1ra--ed ar$und 23e 6uildin5 e/2eri$r. S$me13a2 ne1er res2auran2s 7e-2 23e 6asic s2ruc2ural desi5n and 23eme, 6u2 elimina2ed m$s2 $0 23e in2eri$r 0ea2ures. %3e c$n2em-$rary, mul2i-6rand $u2le2s d$ n$2 use 23e 6lue r$$0ed +a-e +$d-s2yle 6uildin5s. All l$ca2i$ns c$n2inue 2$ 3a4e 23e Urin5 i0 1e did 1ellU 6ell 6y 23e e/i2, a 0ea2ure 23a2 1as la2er c$-ied 6y Ar6yAs. Ori5inally, 23e c3ain 3ad a muc3 lar5er 0$cus $n a -ira2e 23eme. F$r e/am-le, 23e c3ain used 2$ $00er small c3ic7en drums2ic7s 13ic3 23ey called U-e5le5sU. %3e res2auran2, 13ic3 3as $4er 1200 uni2s 1$rld1ide, is a di4isi$n $0 Yum! Brands, Inc. %3e c$m-any -urc3ased i2 0r$m Y$r7s3ire 9l$6al )es2auran2s, 13ic3 $ri5inally acKuired i2 0r$m Flee2 B$s2$n Ban7 a02er i2s 3a4in5 5ained c$n2r$l $0 23e res2auran2s due 2$ 6an7ru-2cy. Yum! $ri5inally c$m6ined many $0 23e 0ranc3isesA l$ca2i$ns 1i23 i2s c3ain $0 AB; )es2auran2s, and m$s2 ne1 *$n5 @$3n Sil4erAs l$ca2i$ns in 23e 0irs2 0e1 years a02er 23e acKuisi2i$n 1ere c$-6randed 1i23 AB;. Yum! ann$unced in 200> 23a2 i2 1$uld e/-and 23e mul2i-6rand c$nce-2 and -air *$n5 @$3n Sil4erAs 1i23 ?F+, Mus2 as 23ey 3ad -aired %ac$ Bell and (i88a 'u2 al$n5 1i23 AB;, and *$n5 @$3n Sil4erAs 3as since 6een -aired 1i23 all $0 Yum!As $23er c3ains. %3e -aren2 c$r-$ra2i$n $0 23e c3ainAs +anadian 0ranc3ises, 13ic3 3a4e n$ c$nnec2i$n 1i23 AB; in +anada, is (ris8m. I(-2&('-,.('0 .32&'-,.(*

A#*-&'0,' %3ere 1as $ne *$n5 @$3n Sil4erAs S2$re l$ca2ed in Aus2ralia, in ?in5s (ar7, a su6ur6 $0 Sydney, NS;. %3e 6ur5ers and sea0$$d 4aried 0r$m 23e American menu 2$ ma7e i2 a m$re classic Aus2ralian "enu, al23$u53 s2ill 2a7in5 $n AAB; )$$2 BeerA and i2s l$5$ as a -ar2ner. In 200H, 23e res2auran2 1as s3u2 d$1n due 2$ -$$r sales. %3e res2auran2 s2ill remains s2andin5 and 4acan2, and is Kuic7ly 6ec$me dila-ida2ed and s$me13a2 $0 an eyes$re. C'(')' Be5innin5 in 23e la2e 1IH0s, a l$ne 0ranc3ise $-era2ed 0$ur s2$res in 23e mid-s$u231es2ern area $0 On2ari$. %3e s2$res 1ere l$ca2ed in ?i2c3ener, +am6rid5e, 9uel-3 and S2ra20$rd. %3eir menus 1ere 6r$ader 23an American s2$res $0 2$day as 23ey included a small selec2i$n $0 salads as meals, s$me includin5 6$iled s3rim-. %3e menu als$ included sea0$$ds n$2 $00ered 2$day, suc3 as clams, $ys2ers, scall$-s, and U(e5 *e5sU (13ic3 1ere -ar2s $0 c3ic7en 1in5s 6u2 named in 7ee-in5 1i23 23e -ira2e 23eme#. %3e s2$res als$ $00ered a limi2ed selec2ed $0 6eer and 1ine. %3e desi5n (+a-e +$d s2yle# $0 23e s2$res 1as similar 2$ American s2$res $0 23a2 2ime -eri$d. By 23e la2e 1IF0s 23ere 1as als$ a l$ca2i$n in *$nd$n, On2ari$, 6u2 6y 23e early 1II0s s$me l$ca2i$ns 6e5an 2$ cl$se and 6y 23e mid 1II0s $nly a l$ne s2$re in ;a2erl$$ 1as $-era2in5, 13ic3 cl$sed s3$r2ly 23erea02er. In 200E, a s2$re 1as $-ened 6y Yum! Brands in ;$$d6rid5e, On2ari$, a n$r23ern su6ur6 $0 %$r$n2$, and a M$in2 s2$re 1i23 ?F+, 13ic3 $nly $00ered a -ar2ial *@S menu, 1as $-ened in (ic7erin5 %$1n +en2re "all, in (ic7erin5, an eas2ern su6ur6 $0 %$r$n2$. %3ese l$ca2i$ns 1ere cl$sed 1i23in a year and 21$ years, res-ec2i4ely, due 2$ -$$r sales. N29 Z2'0'() %3e Ne1 <ealand c3ain *@S Sea0$$d is unrela2ed 2$ *$n5 @$3n Sil4erAs.

S,(7'3.&2 %3ere are curren2ly D1 s2$res $-era2in5 in Sin5a-$re, m$re 23an any $23er sin5le ci2y in 23e 1$rld. U(,-2) K,(7).$ *$n5 @$3n Sil4erAs 6r$7e in2$ 23e !ni2ed ?in5d$m mar7e2 in 200E. %3ey 3ad $ne 6ranc3 in ;alsall near Birmin53am. %3e res2auran2 3$1e4er did n$2 d$ -ar2icularly 1ell 6ec$min5 run d$1n 4ery Kuic7ly, 13ic3 3as s2alled 23eir e/-ansi$n (23$u53 23e !? is 23e lar5es2 c$nsumer $0 0is3 and c3i-s in 23e 1$rld, 23ey als$ 3a4e 23e lar5es2 num6er $0

inde-enden2 res2auran2s, 23ere0$re *$n5 @$3n Sil4erAs 3ad n$ 0$$23$ld $n 23e c$m-e2i2i$n#. %3e res2auran2 is n$1 re-6randed as a ?F+. T',9'( %3ere are a c$u-le $0 s2$res l$ca2ed in %ai1an. CHAPTER 3 +$m-any Analysis O4er4ie1 Yum!As s2ra2e5y 0$r le4era5in5 di4ersi2y includes 0ranc3isin5 and su--lier di4ersi2y. Yum! su--$r2s min$ri2y en2re-reneurs3i- 23r$u53 i2s s-$ns$rs3i- $0 23e Na2i$nal "in$ri2y Su--lier &e4el$-men2 +$uncil and is a 0$undin5 mem6er $0 23e Na2i$nal "in$ri2y Franc3isin5 Ini2ia2i4e, 23e In2erna2i$nal Franc3ise Ass$cia2i$nAs &i4ersi2y Ins2i2u2e, and 23e ;$menAs Franc3ise and &is2ri6u2i$n F$rum. In addi2i$n 2$ 0ranc3isin5 and su--lier di4ersi2y, Yum!As di4ersi2y s2ra2e5y includes em-l$ymen2, leaders3i- de4el$-men2, and c$mmuni2y in4$l4emen2. O4er 2> -ercen2 $0 Yum!As annual c$r-$ra2e 5i4in5 5$es 2$ su--$r2 -red$minan2ly min$ri2y c$mmuni2ies. Eac3 year Yum! -ar2ners 1i23 $ur mul2icul2ural cus2$mers 23r$u53 3i53 im-ac2 -r$5rams suc3 as +$lle5e Blac7 E/-$s, ?F+ (ride DE0, 23e N+*) +3ar2er Sc3$$l Ar2s 9ran2, Or5ani8a2i$n $0 +3inese Americans (O+A# Y$u23 and +$lle5e (r$5rams, 23e American Indian +$lle5e Sc3$lars3i- Fund, lead s-$ns$rs3i- $0 23e Na2i$nal NAA+( Y$u23 and +$lle5e &i4isi$n, crea2i$n $0 23e 'is-anic En2er-rise 'is-ana *eaders3i- Summi2, and a s2ra2e5ic -ar2ners3i- 1i23 Na2i$nal !r6an *ea5ueAs Y$un5 (r$0essi$nals and 3r.an -n&luence "a5a8ine, am$n5 $23ers. "any $0 Yum! BrandsA -3ilan23r$-ic e00$r2s are 0$cused $n min$ri2y c$mmuni2y 5i4in5 and em-l$yee 4$lun2eerism. %3e Yum! Brands F$unda2i$n 3as c$mmi22ed a--r$/ima2ely G1 milli$n 2$ 23e *$uis4ille-6ased "u3ammad Ali +en2er, an in2erna2i$nal cul2ural and educa2i$nal ins2i2u2i$n, 0$r 23e ad4ancemen2 $0 3umani2y 1$rld1ide and G2>0,000 0$r 23e crea2i$n $0 23e +3ildrenAs Educa2i$nal +en2er as -ar2 $0 23e ?en2uc7y +en2er 0$r A0ricanAmerican 'eri2a5e. Yum! and i2s 6rands als$ 3a4e 6een c$mmi22ed 2$ 0i532in5 3un5er 0$r m$re 23an a decade 6y d$na2in5 G>0 milli$n $0 -re-ared 0$$d annually 2$ 23e under-ri4ile5ed in 23e !ni2ed S2a2es. %3e c$m-any 3as 6een 23e -rimary s-$ns$r $0 23e &are 2$ +are F$$d Ban7 in *$uis4ille, ?en2uc7y, d$na2in5 G1 milli$n annually 0$r 23e -as2 se4en years 2$ 0eed I0,000 3un5ry c3ildren in underser4ed min$ri2y c$mmuni2ies. In addi2i$n, las2 year Yum! Brands launc3ed 23e 1$rldAs lar5es2 -ri4a2e sec2$r 3un5er relie0 e00$r2, in -ar2ners3i- 1i23 23e !ni2ed Na2i$ns ;$rld F$$d (r$5ram and $23er 3un5er relie0 a5encies. %3is e00$r2 raised

G1E milli$n 0$r 23e ;$rld F$$d (r$5ram and $23er 3un5er relie0 $r5ani8a2i$ns and 3el-ed sa4e $4er 1.E milli$n -e$-le 0r$m s2ar4a2i$n in rem$2e c$rners $0 23e 1$rld, 13ere 3un5er is m$s2 -re4alen2.

S4OT ANALYSIS

S4OT A('0/*,*
S-&2(7-6* A &i4erse +us2$mer Base Yum! Brands. 0i4e di00eren2 res2auran2 6rands all$1 23e c$m-any 2$ ca2er 2$ alm$s2 any 2y-e $0 cus2$mer. ?F+ $00ers 0ried and n$n-0ried c3ic7en -r$duc2s. (i88a 'u2 is a 2$- c$m-e2i2$r in -i88a sales. %ac$ Bell s-eciali8es in "e/ican-S2yle 0$$ds. *$n5 @$3n Sil4er ser4es sea0$$d, and als$ $00ers c3ic7en sand1ic3 i2ems. Als$, AB; $00ers American 6ur5ers, 3$2 d$5s, and 23eir 0am$us r$$2 6eer 0l$a2s. %3is 1ide array $0 -r$duc2s e/3i6i2s a

si5ni0ican2 ad4an2a5e $4er i2s 2$- c$m-e2i2$rs li7e "c&$nalds, ;endy.sJAr6y.s, and Bur5er ?in5, 13$ are n$2 a6le 2$ ca2er 2$ suc3 a di4erse ran5e $0 2as2es 0$r 23e c$nsumer. *eadin5 Brands Yum! Brands 3as es2a6lis3ed a leadin5 mar7e2 -$si2i$n 1i23 a -$r20$li$ $0 es2a6lis3ed 6rands and 3i53 le4els $0 c$nsumer acce-2ance. ?F+, (i88a (i88a 'u2, %ac$ Bell, AB;, and *$n5 @$3n Sil4er.s are 3$use3$ld names 23a2 c$n2inue 2$ c$n2ri6u2e 2$ Yum! Brands. increasin5 re4enues year a02er year. ?F+ is 23e leader in 23e !S c3ic7en =S) se5men2 1i23 a O2Y mar7e2 s3are. (i88a 'u2 is 23e leader in 23e !S -i88a =S) se5men2, 1i23 1OY mar7e2 s3are. %ac$ Bell is 23e leader in 23e !S "e/ican =S) se5men2, 1i23 >2Y mar7e2 s3are. *@S is 23e leader in 23e !S sea0$$d =S) se5men2L 1i23 DEY mar7e2 s3are./i4 %3ese s2a2is2ics -r$4e Yum! Brands. d$minance am$n5 c$m-e2i2$rs and all$1s mana5emen2 2$ 0$cus $n sus2aina6ili2y. 42'5(2**2* &eclinin5 same s2$re sales &eclinin5 same s2$re sales 1as a maM$r 1ea7ness 0$r Yum! Brands durin5 200I. Same s2$re sales is a measuremen2 $0 23e 5r$123 in sales $0 all res2auran2s in $-era2i$n 0$r a minimum $0 $ne year. ;$rld1ide same s2$re sales decreased 6y 2Y in 200I, 13ic3 can 6e a22ri6u2ed 2$ a DY decrease in +3inese res2auran2s and a >Y decrease in !S res2auran2s. '$1e4er, Yum! Brands is $n 23e re6$und, -$s2in5 Same S2$re Sales increases $0 1Y in 23e !ni2ed S2a2es and EY in +3ina durin5 2010. /4 O33.&-#(,-,2* %3e +3inese "ar7e2 Yum! Brands O23 Kuar2er earnin5s 0$r 2010 re-$r2ed $4erall sales 5r$123 $0 EY., 1i23 21Y sales 5r$123 in +3ina. ?F+ and (i88a 'u2 are curren2ly in 3i53 demand 23r$u53$u2 +3ina, and Yum! Brands -lans 2$ 2a7e ad4an2a5e $0 23e +3inese 5r$123 6y in4es2in5 milli$ns m$re in2$ 23e mar7e2 6y $-enin5 >0H ne1 res2auran2s in +3ina durin5 2011. /4i Increase in &$mes2ic "ar7e2 S3are Yum! Brands launc3ed ne1 mar7e2in5 cam-ai5ns durin5 2010 1i23 23e in2en2 2$ increase i2s re4enues

in 23e !ni2ed S2a2es. ?F+ in2r$duced a na2i$n-1ide 4alue menu in2r$ducin5 Kuali2y 0$$d a2 l$1 -rices. (i88a 'u2 success0ully res-$nded 2$ c$m-e2i2i$n 6y $00erin5 G10 -i88as, 13ic3 3a4e since 6ec$me a s2andard 0$r in-s2$re and deli4ery -i88as. Yum! Brands. 5$al 2$ decrease c$m-any $1ners3i- 6y 0ranc3isin5 i2s 6rands m$re 3as already -r$4en 2$ 6e an e00ec2i4e me23$d $0 increasin5 -r$0i2 mar5ins, 1i23 -lans 2$ decrease c$m-any $1ners3i- 2$ >Y 0$r eac3 ?F+ and (i88a 'u2, d$1n 0r$m 21Y and 1FY, res-ec2i4ely./4ii T6&2'-* In0la2i$n in +3ina +3ina.s ra-id ec$n$mic 5r$123 raises c$ncern a6$u2 in0la2i$n in +3ina. On A-ril 1H23, 2011, +3ina.s cen2ral 6an7 $rdered 23e 6i55es2 6an7s 2$ se2 aside lar5e cas3 reser4es, 23e 0$ur23 2ime 23is year. +3inese in0la2i$n 1ill cause 0$$d -rices 2$ s$ar, as +3inese +(I r$se 2$ >.OY in "arc3, i2s s3ar-es2 increase in 23e -as2 23ree years.

!ROFITABLITY RATIOS AND CASH FLO4 STATEMENT

F,('(+,'0 S#$$'&/ %3e c$m-any.s 2$2al re4enue $0 GD>E milli$n $r G0.HO -er s3are 0$r 23e 0$ur23 Kuar2er $0 2011, 13ic3 1as a DDY increase c$m-ared 2$ i2s re4enue $0 23e same Kuar2er las2 year.I %3e increased re4enue 1as mainly dri4en 6y 23e su6s2an2ial 5r$123 in i2s +3ina di4isi$n. !&.)#+-* '() M'&52-* Yum Brands is 23e $ne $0 23e lar5es2 Kuic7 ser4ice res2auran2s in 23e 1$rld. I2 mainly ser4es c3ic7en, mas3ed -$2a2$es, -i88as, 2ac$s, salads, 6ur5ers, 3$2 d$5s

and many $23ers 23r$u53 23e i2s 23ree 6rands ?F+, (i88a 'u2 and %ac$ Bell. %3e c$m-any is $-era2in5 in $4er 110 c$un2ries all $4er 23e 1$rld. As 23e da2a indica2es, Asia is 23e lar5es2 mar7e2 0$r 23e c$m-any, and 23is is mainly dri4en 6y 23e -r$0i2 5enera2ed in +3ina.

S$urce @.(. "$r5an Es2ima2es By 23e end $0 2011, Yum Brands s2ill $1ns 2H.2Y $0 23e +3ina 6ased 3$2 -$2 c$nce-2 res2auran2 *i22le S3ee-, and i2 3as $62ained a--r$4al 0r$m 23e minis2er $0 c$mmerce $0 +3ina 2$ acKuire an$23er EEY $0 23e s3ares $0 23is c$m-any.10 *i22le S3ee- is a 0am$us res2auran2 in +3ina. And 1e e/-ec2 23a2 $nce 23e acKuisi2i$n is c$m-le2e, Yum Brands can -r$duce e4en 3i53er re4enue 5r$123.

!&.)#+-,.( '() D,*-&,1#-,.(: %3e 6rands 1i23in 23e !.S s3are $ne -urc3asin5 uni2 called !ni0ied F$$dser4ice (urc3asin5 +$-$-, **+, 13ic3 1as s$lely crea2ed 2$ l$ca2e 23e l$1es2 -rice su--ly 0$r 23$se c$m-anies. %3e 6rands $-era2in5 $u2side 23e !.S. use decen2rali8ed dis2ri6u2i$n sys2ems, and Yum Brands 3as $4er >00 dis2ri6u2i$n cen2ers in +3ina al$ne. %3is c$uld -$se a -$2en2ial 23rea2 2$ 23e su--ly $0 0$$ds since i2 is 3arder 2$ mana5e.

B'0'(+2 S622- .; Y#$% B&'()* >I( ?@ !ERIOD ENDING A**2-* +urren2 Asse2s +as3 And +as3 EKui4alen2s S3$r2 %erm In4es2men2s Ne2 )ecei4a6les In4en2$ry O23er +urren2 Asse2s T.-'0 C#&&2(- A**2-* D>D,000 21E,000 HFI,000 D20,000 D10,000 D>0,000 2A-D2+-BC 2D-D2+-BE 2C-D2+-BD

122,000 1OD,000 12F,000 O1D,000 2F2,000 21O,000 1,2BE,BBB CF1,BBB 1,"E1,BBB

*$n5 %erm In4es2men2s 1OO,000 E>,000 1>D,000 (r$-er2y (lan2 and EKui-men2 D,FII,000 D,H10,000 D,FOI,000 9$$d1ill EO0,000 E0>,000 EH2,000 In2an5i6le Asse2s OE2,000 DD>,000 DDD,000 Accumula2ed Am$r2i8a2i$n O23er Asse2s >OO,000 >E1,000 OEO,000 &e0erred *$n5 %erm Asse2 +3ar5es 2>1,000 D00,000 2I0,000 T.-'0 A**2-* D,1"E,BBB A,F2D,BBB D,2"2,BBB

L,'1,0,-,2* +urren2 *ia6ili2ies Acc$un2s (aya6le 1,1DF,000 2>,000 L,'1,0,-,2* *$n5 %erm &e62 2,I2O,000 1,1HO,000 L,'1,0,-,2*

1,>IO,000 1,0F>,000 S3$r2J+urren2 *$n5 %erm &e62 >I,000 2FF,000 O23er +urren2 *ia6ili2ies E12,000 EDE,000 T.-'0 C#&&2(1,AF3,BBB 1,D22,BBB 2,BA2,BBB D,20H,000 D,>EO,000 O23er *ia6ili2ies 1,DOI,000 1,11H,000 "in$ri2y In2eres2 FI,000 T.-'0 A,123,BBB A,A3F,BBB A,1B3,BBB

A('0/*,* .; B'0'(+2 S622-

By 23is 6alance s3ee2 i2 can 6e in0erred 23a2 in 200F c$m-any.s curren2 asse2s 1ere less 23an 200H 6u2 c$m-any 1as c$ncerned a6$u2 i2s re-u2a2i$n and all 23in5s s$ curren2 asse2s increased in 200I a5ain.

%3is same 23in5 1as 1i23 i2s 2$2al asse2s, s$ c$m-any 1$r7ed 3ard and a5ain i2 increases i2s 2$2al curren2 asse2s. S$ i2 is a 4ery 5$$d si5n 0$r any 2y-e $0 $r5ani8a2i$n.

Bu2 as -er 1e 2al7 a6$u2 23e analysis $0 i2s lia6ili2ies, i2 is 3a4in5 4ery 5$$d si5n. Because i2s lia6ili2ies 1ere m$re in 200H as c$m-are 2$ 200F and 200I. I0 any c$m-any ($r5ani8a2i$n# is 3a4in5 0e1er lia6ili2ies as c$m-are 2$ i2s asse2s, s$ i2 is c$nsider as a 4ery 5$$d si5n 0$r 23e c$m-any.

S$ i2 is 4ery 5$$d 0$r Yum! Brands 23a2 i2 is 3a4in5 5$$d 0inancial -$si2i$n in 23e mar7e2.

N29* &20'-2) 9,-6 -62 C.$3'(/ >Y#$% B&'()*@ N29 ,( Y#$ Yum! Brands 3as a--$in2ed 9re55 &edric7 2$ 23e -$s2 $0 -residen2 $0 i2s ?F+ !.S. di4isi$n. &edric7 3as 1$r7ed 1i23 Yum! F$r 10 years, m$s2 recen2ly ser4in5 as e/ecu2i4e 4ice -residen2 $0 -e$-le and s3ared ser4ices. 'e re-laces +3eryl Bac3elder, 13$ 3as resi5ned P2$ -ursue $23er in2eres2s. Yum! 'as als$ ann$unced i2s sales 0$r 23e 0$ur 1ee7s 23a2 ended $n Se-2. E, ?F+ re-$r2ed a EY decline in same-s2$re sales c$m-ared 2$ a year a5$. (i88a 'u2 same-s2$re sales 5re1 OY, 13ile %ac$ Bell re-$r2ed a 2Y increase. O4erall, Yum.s !.S. same-s2$re sales 0$r 23e -eri$d 1ere e4en c$m-ared 2$ a year a5$.

Y#$ 30'(* (29 3&.)#+-*, 3&.$.-,.(* !,::' H#-, T'+. B200, KFC -. #(82,0 (29 ;0'8.&*, $2(# 0,(2*

B/ S#*'( S3,2012&7 *O!IS,I**E, ?.Y. N Yum! Brand Inc., 13ic3 23is m$n23 re-$r2ed 0la2 !.S. re4enues $0 G1.H 6illi$n 0$r 23e O23 Kuar2er, -lans 2$ dri4e d$mes2ic sales a2 i2s (i88a 'u2, ?F+ and %ac$ Bell c3ains 1i23 ne1 -r$duc2s in 200>, includin5 a 3i53ly s-iced ne1 4arie2y 0$r i2s s2ru55lin5 c3ic7en c3ain. ;3ile Yum is 0$cusin5 $n menu inn$4a2i$ns 0$r 23e E,D00 d$mes2ic uni2s $0 (i88a 'u2, -r$duc2 u-5rades als$ are -lanned 0$r 23e >,0D0 !.S. 6ranc3es $0 %ac$ Bell, 13ic3 6e5an 23e year 1i23 a ne1 c3ic7en enc3ilada 6urri2$ i2em. %3e em-3asis $n P3i53ly 0la4$red 0ried c3ic7en a2 ?F+.s >,O>0 d$mes2ic 6ranc3es 1ill c$me as 23e c3ain launc3es a 2es2 $0 a P3i53-Kuali2y, l$1er--eri$d -r$duc2 in "arc3.

Our a--r$ac3 2$ 6uildin5 a 2alen2ed, di4erse 1$r70$rce is 6uil2 $n $ur maM$r 6usiness -rinci-les. %3ese -rinci-les em-3asi8e 23e im-$r2ance $0 in4es2in5 in ass$cia2e recrui2men2 and ad4ancemen2, 6$23 0$r indi4idual de4el$-men2 and 0$r $ur $4erall success as a 6usiness. As a 5l$6al c$m-any 1i23 a di4erse and e4er-c3an5in5 1$r70$rce, 1e 0ace si5ni0ican2 c3allen5es. F$r e/am-le, $ur ra-id 5r$123 in emer5in5 mar7e2s li7e India and )ussia reKuires us 2$ ada-2 $ur -$licies 2$ 23ese mar7e2s, and 2$ learn 0r$m $ur ne1 -ar2ners. Buildin5 a di4erse 0$unda2i$n a2 all $0 $ur 6rands 5i4es us a c$m-e2i2i4e ed5e and 3el-s us $-era2e as a l$cal 6usiness in in2erna2i$nal mar7e2s.

(ar2 $0 $ur 5r$123 s2ra2e5y 1ill 6e 2$ ensure 23a2 $ur leaders3i- 2eam, c$m-any 1$r70$rce and cul2ure are as di4erse as $ur cus2$mers ar$und 23e 1$rld.