Multibranding - Yum!

6.
We are are anything anything but but your your ordinary ordinary restaurant company.
Our goal is to be the
best restaurant operator
in our industry.
DavidC. Novak
Chairman and Chief
Executive Offi cer
Yum! Brands, Inc.
Exciting products are constantly
coming through the pipeline at Yum!’s
individual brands. One such product
is Taco Bell’s Cheesy Gordita Crunch,
delivering the dynamic contrast of a
crunchy taco shell inside a warm, soft
Gordita fl atbread held together with a
melted three-cheese blend.
We obviously have a major opportunity to improve. For example, at Taco Bell where we had
our best U.S. company same-store sales growth of +2% in 2003, only 66% of our restaurants
had sales growth and only 42% of the CHAMPS scores reached 100%. We have uneven performance
like this at every brand in almost every country in the world. This only shows us how
much upside we have to grow by Running Great Restaurants.
We are striving to train 840,000 team members across our system once a quarter on how
to be Customer Maniacs. We began this training this year and turnover is down, complaints
are down, and compliments are up. CHAMPS scores are improving. We’re making progress
but we know we can and must get better. Our goal is to be the best restaurant operator in
our industry.
As we march ahead, our entire organization is focused on building what we call the Yum!
Dynasty, driving consistent results year after year, which is a trademark of truly great companies
and rising shareholder value. On the next page you can see the roadmap we’ve laid out
for dynasty-like performance, along with some of my handwritten comments I always include
in my New Year’s letter to our restaurant teams.
What you can’t see in our numbers, but I hope you can get a sense of in this report, is the power
of the worldwide culture we are building. It’s a high energy, people capability first, customer
mania culture that is centered on spirited recognition that drives performance. If you talk to
our people, you’d hear a universal conviction that the culture we are building is our true secret
weapon. I’m confident we will execute our unique strategies because our outstanding people
and our tremendous franchisees are galvanized around building our business the right way.
In particular, I especially want to thank the Restaurant General Managers who have driven their
same-store sales and achieved 100% CHAMPS scores. You are our number one leaders for a
reason. Only RGMs can build the team of Customer Maniacs that can satisfy our customers.
I appreciate your daily focus to deliver 100% CHAMPS every shift and your passion to build a
team of 100% Customer Maniacs. I tell everyone the basic truth of our business: “Show me a
great RGM and I’ll show you a great restaurant.” That’s because customers see the difference
in the service and we see the difference in our profits.
I’d also like to thank our dedicated Board of Directors, especially Ron Daniel and John Weinberg
who retired this year, for their contributions and passion for helping us build dynasty-like
performance.
We have the power of Yum! and a great future. I hope you agree we are anything but your
ordinary restaurant company.
YUM! TO YOU!
DavidC. Novak
Chairman and Chief Executive Officer
Yum! Brands, Inc.