Industry News | November 2, 2000

Tricon Takes a Hit

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Tricon Global Restaurants, Inc. (NYSE:YUM) today reported that U.S. blended same-store sales at company restaurants were down 2% for the four-week period ended October 28, 2000. Tricon's International operations reported system sales growth of 7% for the year-to-date. These results were in line with company expectations.

For the period, same store sales were up 9% at Pizza Hut, but at KFC sales were down 4%. Taco Bell's suffered a sales decline of 12%.

Taco Bell's same store sales declined as it lapped the launch of Chalupas, one of its most successful new products, and was impacted by a recall of taco shells sold in supermarkets by Kraft Foods licensed under the Taco Bell name. For the full fourth quarter, Tricon continues to hold to its prior guidance for Taco Bell which is a decline of 5% to 7% in same store sales. This includes an anticipated double-digit decline for period 12 (November) sales. In period 12, 1999, Taco Bell's same store sales benefited from the Chalupa introduction as well, and a 3% point boost from the sale of plush dog toys, which have been discontinued.

The four-week period ended October 28, 2000 represents Tricon's period 11.