UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
August 19, 1998
TRICON GLOBAL RESTAURANTS, INC.
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(Exact name of registrant as specified in its charter)
North Carolina 1-13163 13-3951308
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1441 Gardiner Lane, Louisville, Kentucky 40213
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(Address of principal executive offices) (Zip Code)
(502) 874-8300
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(Registrant's telephone number, including area code)
N/A
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(Former name or former address, if changed since last report)
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Item 5. OTHER EVENTS
On August 19, 1998 TRICON Global Restaurants, Inc. issued a press
release announcing anticipated third quarter operating and financial
trends. A copy of such press release is attached hereto as Exhibit
99 and incorporated herein by reference.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99 Press release dated August 19, 1998 from TRICON Global
Restaurants, Inc.
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<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TRICON GLOBAL RESTAURANTS, INC.
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(Registrant)
Date: August 19, 1998 /s/ Robert L. Carleton
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Robert L. Carleton
Senior Vice President and
Controller and Chief Accounting
Officer
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Exhibit 99
TRICON ANNOUNCES STRONG THIRD QUARTER OPERATING
AND FINANCIAL TRENDS
LOUISVILLE, KY (August 18, 1998) - Tricon Global Restaurants, Inc. (NYSE:YUM)
announces strong operating and financial trends in the third quarter scheduled
to end September 5, 1998.
Andrall Pearson, Chairman and CEO said: "We're experiencing
stronger-than-expected operating profit growth in our business driven by vigor
in each of our domestic brands, excellent performance in our international
business considering Asia, and lower G&A. Our operating performance has been so
strong that we believe that we can achieve at least a 150 basis point
improvement in store level margin in the quarter. As we expected, improvement in
our base operations is contributing importantly to our overall margin
improvement.
In the U.S., for the first time in over five years, all three of our brands are
simultaneously trending in the low-to-mid single digit range in same store sales
growth. Pizza Hut has demonstrated sustained sales and significant margin
improvement in the quarter, while sales at KFC have set record levels after the
relaunch of Extra Tasty Crispy chicken earlier this month. Taco Bell continued
to upgrade the quality of their products by introducing a new all white meat
chicken line in a number of products, including their popular flatbread taco,
Gorditas. Internationally, countries such as Mexico and the U.K. continue to put
in solid performances while our operations in Asia continue to tackle the
economic crisis well.
Our operating performance in the quarter coupled with continued high levels of
refranchising and the benefits of strong cash flow, has increased our confidence
in our third quarter and full-year outlook. In the quarter, we expect operating
profit to be up about 30 percent, operating EPS to be up over 70 percent while
reported EPS, which includes facility action net gains, should be up over 50
percent. The increase in our expectations for the third quarter should also
benefit our full-year performance."
This announcement contains forward-looking statements that estimate future
results from strategic actions. These "forward-looking" statements reflect
management's expectations and are based upon currently available data; however,
actual results are subject to future events and uncertainties, which could cause
actual results to differ from those projected in these statements. Factors that
can cause actual results to differ include economic and political conditions in
the countries and territories where Tricon operates, the impact of such
conditions on consumer spending and currency exchange rates, pricing pressures
resulting from competitive discounting, new product and concept development by
Tricon and other food industry competitors, the success of our refranchising
strategy, and fluctuations in commodity prices. Further information on factors
that could affect Tricon's financial and other results are included in the
company's Forms 10-Q and 10-K, filed with the Securities and Exchange
Commission.
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