Yum! 2010 Annual Report

Financial Highlights
(In millions, except for per share amounts)
Year-end 2010 2009 % B/(W) change
Company sales $ 9,783 $ 9,413 4
Franchise and license fees and income 1,560 1,423 10
Total revenues $ 11,343 $ 10,836 5
Operating Profit $ 1,769 $ 1,590 11
Net Income – Yum! Brands, Inc. $ 1,158 $ 1,071 8
Diluted Earnings Per Common Share before Special Items (a) $ 2.53 $ 2.17 17
Special Items Earnings Per Common Share (a) (0.15) 0.05 NM
Reported Diluted Earnings Per Common Share $ 2.38 $ 2.22 7
Cash Flows Provided by Operating Activities $ 1,968 $ 1,404 40
(a) See page 29 of our 2010 Form 10-K for further discussion of Special Items.
Average US Sales per System Unit (a)
(In thousands)
Year-end 2010 2009 2008 2007 2006 5-year growth (b)
KFC $ 933 $ 960 $ 967 $ 994 $ 977 –
Pizza Hut 855 786 854 825 794 1%
Taco Bell 1,288 1,255 1,265 1,147 1,178 2%
(a) Excludes license units.
(b) Compounded annual growth rate.
Contents
Dear Partners ............................................................................1
Winning Big in China! ............................................................. 4–5
Building Strong Brands Everywhere ..................................... 6–7
Improving US Brand Positions ..................................................8–9
Driving Long-Term Shareholder Value........................................ 10
ABouT The pApeR useD foR This RepoRT
The inks used in the printing of this report contain an average of 25% - 35% vegetable oils from plant
derivatives, a renewable resource. They replace petroleum based inks as an effort to also reduce
volatile organic compounds (VOCs).
The cover and first 14 pages of this report were printed using FSC-certified paper made with 50%
recycled content including 24% post-consumer waste.