Pizza Hut - Yum!

Having a YUMMY

Jianzhong Tang was turning five. He told
his mom he wanted only one gift – to spend
his birthday at KFC with Chicky – the lovable,
colorful KFC mascot. Chicky has put a YUM
on millions of kids’ faces around the globe,
celebrating hundreds of birthday parties at
each of our KFC international restaurants
every year.
birthday!

Last year, Tricon
International opened
a record 929 new
traditional restaurants
around the
world, and we plan
to open about the
same number of
stores in 2001.
International System
Sales by Brand
KFC 67%
Taco Bell 2%
Pizza Hut 31%
International
“2000 was a year of growth,
growth, growth for our interna-
tional business! We opened 929
traditional restaurants around
the world, grew operating profit
to $309 million, up 16% from
1999, and improved interna-
tional system sales by 6%. And
we did it while achieving solid G&A reduction
and margin improvement.
“Our big international winners were Greater
China, which increased profits a whopping 47%,
and our KFC United Kingdom and Pizza Hut Korea
businesses, which each increased profits by 25%.
“We also boosted the global popularity of our
food, scoring big wins with the debut of Pizza Hut’s
Stuffed Crust pizza in Malaysia and the Philippines,
and the continuing success of KFC’s Twister in Australia
and Korea. In Asia, we launched two delicious
new product variants, Honey Mustard
Twister and Spicy Twister, which are helping
to drive strong sales growth in the region.
Pete Bassi
President
Peter Hearl
Executive Vice President
Pizza Hut and KFC
are world leaders in
the pizza and
chicken categories,
and we believe we’ll
drive consistent
profit growth from
here on out, as seen
by a 47% increase in
Greater China and
25% profit growth in
the United Kingdom.

“We’ve been focused on growing our business globally, develop-
ing the KFC brand in Germany and in other European markets,
and exploiting the power of our Pizza Hut brand through home
delivery service to strengthen our category leadership.
“What’s ahead? We’ll continue to boost profits by growing sys-
tem sales, attacking margin improvement, leveraging the benefits of
CHAMPS to strengthen operations and delivering on our strategic
growth opportunities.
“All in all – our international outlook looks terrific. Fueled by
a maniacal customer focus and a great track record of success –
our global growth will continue for years to come!”
First launched in
Korea three years
ago, Twister has
created more daypart
opportunities
and has a broader
appeal to a younger
consumer segment.

Going the extra

mile!
Just about all 10,000 people who live in
La Porte, Ind., know and love Pizza Hut RGM
LuAnne DeVall. That’s because she truly
cares about the customers of her deliveryonly
restaurant. LuAnne is a Customer Maniac
who goes the extra mile to please her customers.
That occasionally means making a
few pizza home delivery trips of her own –
taking along a bag of candy as a surprise
or even picking up a prescription along the
way for an elderly customer in need!

The Insider pizza,
with its six-cheese
blend, was one of
the speciality pizzas
that drove Pizza
Hut’s same store
sales growth – up 1%
during 2000 – on top
of record-setting
9% growth.
Pizza Hut “To those who said Pizza Hut could never
top 1999’s extraordinary growth, we say: We can. We did. After
our record-setting 9% same store sales growth in 1999, this year
Pizza Hut added an additional 1% same store sales growth. And
we did it without sacrificing profitability. In fact, restaurant margins
increased more than a full percentage point.
“How did we drive our third straight year of sales growth and
bolster our category-leading market share? By focusing on three
things: Great people, processes and products.
“Success in our business begins by putting people capability first.
That’s why we train, recognize and reward our people at every oppor-
tunity. In 2000, that led to the lowest
turnover rate in Pizza Hut’s history
in one of the toughest labor
markets ever.

Pizza Hut was
named the #1
national pizza chain
in America according
to the “Restaurants
& Institutions” annual
survey.
“Processes and people pro-
vide the kind of service that
keeps customers coming back.
In 2000, we focused on the
“S” in CHAMPS, Speed of
service, by training managers
throughout the Pizza Hut sys-
tem in delivery fundamentals.
Customers noticed: Pizza Hut
regained its rightful place as the #1 national pizza
chain in America, according to the Restaurants &
Institutions annual survey.
“Product innovation, variety and quality
continued to fuel consumer growth at Pizza Hut, particularly with
The Insider – a pizza inside a pizza, with Pizza Hut’s delicious six-
cheese blend. The Insider increased market share among Echo
Boomers (ages 5-22), especially high school students.
“As we enter a new century, we have new strategies
in place to drive sales, develop new units, build out our
delivery segment and satisfy our customers better than anyone.
But we have the same old-fashioned formula for success: Great
people, processes and products.”
Mike Rawlings
President and
Chief Concept Officer
Mike Miles
Chief Operating Officer
Pizza QSR Sales
Pizza Hut 22%
Domino’s 11%
Papa John’s 7%
Regionals 7%
Little Caesar’s 5%
Independents 48%*
*Highly fragmented
Pizza Hut introduced
a new logo
and new look that
will be showing up
in our restaurants
around the world.