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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)
November 15, 1999
Commission file number 1-13163
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TRICON GLOBAL RESTAURANTS, INC.
(Exact name of registrant as specified in its charter)
North Carolina 13-3951308
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(State or other jurisdiction of (IRS Employer
of incorporation or organization) Identification No.)
1441 Gardiner Lane, Louisville, Kentucky 40213
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (502) 874-8300
Former name or former address, if changed since last report: N/A
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Item 5. OTHER EVENTS
On November 15, 1999, TRICON Global Restaurants, Inc. issued a press
release, a copy of the 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 November 15, 1999 from TRICON Global
Restaurants, Inc.
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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: November 15, 1999 /s/ Robert L. Carleton
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Robert L. Carleton
Senior Vice President and Controller
(Principal Accounting Officer)
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EXHIBIT 99
TRICON GLOBAL RESTAURANTS PROMOTES NOVAK TO CEO AND DENO TO CFO AFFIRMS FOURTH
QUARTER AND FULL YEAR EARNINGS OUTLOOK; RAISES 2000 OPERATING EARNINGS GROWTH
TARGET
LOUISVILLE, KY (November 15, 1999) -- Tricon Global Restaurants, Inc.,
(NYSE:YUM) today announced that David C. Novak, 47, will become Chief Executive
Officer on January 1, 2000, succeeding Andrall E. Pearson, 74, who will continue
to serve as Chairman of the Board through the end of 2000. Novak has been
Vice-Chairman and President of the Company since it was spun-off from PepsiCo in
October, 1997. The company also announced that David Deno, 42, has been promoted
to Chief Financial Officer. He most recently served as Chief Financial Officer
of the Company's successful international business.
"Since Tricon became public, David Novak has been my full partner in developing
our strategies to drive growth and shareholder return. The results speak for
themselves. By virtually every yardstick, we are a very different and better
company from the one we inherited from PepsiCo," said Pearson. "David is an
outstanding leader who knows the business cold and gets top results. He is fully
devoted to our goal of building sustained growth in value for our shareholders.
We are fortunate to have such an accomplished leader become Tricon's CEO into
the next millennium. This transition will be seamless."
"I'm delighted Andy Pearson will be our Chairman through the end of 2000," said
Mr. Novak. "His experience and talent have been instrumental to the successful
formation of Tricon. His passion for our business is almost as amazing as his
energy level and uncanny ability to define reality in a manner that has inspired
us all to achieve higher levels of performance."
"Throughout our business, we are meeting or exceeding the goals we established
for ourselves by implementing our proven operating, asset and financial
strategies. Accordingly, we are pleased today to reaffirm that we expect to meet
our 1999 earnings goal, and are now in a position to raise our 2000 earnings
growth goal. Our fourth quarter performance is on track and we continue to
expect to achieve a 33-35 percent increase in 'ongoing operating earnings per
share' for the full fiscal year, from $1.83 last year. In addition, our strong
momentum is enabling us to now raise our 2000 goal for 'ongoing operating
earnings per share' to 23-27 percent growth, from our prior guidance of mid-teen
growth," said Novak. This increased estimate includes 2-3 points of growth from
the effect of a 53rd week in 2000, versus 52 weeks this year. "The Company has
repurchased about 2.5 million of its shares since announcing a share repurchase
program in September, reflecting our belief that Tricon's shares are undervalued
and represent an outstanding long-term investment," Novak added.
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"I'm very pleased to announce David Deno will be our Chief Financial Officer,"
said Mr. Novak. "One of our key strengths at Tricon is depth of management
talent and experience, and David Deno is an excellent example. He brings a
wealth of both financial and operating experience, having spent seventeen years
in the restaurant business. Most recently, as CFO of Tricon Restaurants
International, David led the financial restructuring that has dramatically
improved the Company's profitability. He has spearheaded our international
refranchising efforts, formed joint ventures and partnered with operators around
the world. As a result of its focused growth strategy, our international
business is well poised for the future. Clearly, selecting a CFO is of the
utmost importance to any company, and so we approached this decision as
thoroughly and carefully as possible. After full and careful consideration, it
became quite clear to us and to our Board that David is exactly the right choice
to be CFO of Tricon."
"We also want to thank Sandra Wijnberg for the excellent job she has done as our
interim CFO. She removed herself from consideration for the CFO position given
that she was unable to make a long-term commitment to Louisville. Sandra, along
with Bob Carleton, Tricon's SVP and Controller, and the entire finance team,
have worked tirelessly for the benefit of our shareholders," said Novak.
Prior to assuming his leadership position at Tricon, Mr. Novak established an
exceptional record of building both restaurant operations and top consumer
brands, having been associated with PepsiCo for 20 years as an executive of the
corporation in several senior capacities.
Before heading Tricon, Mr. Novak served as President and CEO of KFC and Pizza
Hut, and is credited with overhauling product quality and turned around sales
and profits at both brands. Prior to that, he served as Chief Operating Officer
of Pepsi-Cola North America, Executive VP of Marketing and Sales at Pepsi-Cola
North America, and Senior Vice President of Marketing at Pizza Hut.
Mr. Deno joined Pizza Hut from Burger King in 1991 where he held various
finance, real estate and business development positions for eight years. At
Pizza Hut, Deno excelled as VP/Controller and was promoted to Divison VP
responsible for operating 600 stores, leading the way in improved profits and
customer satisfaction, establishing himself as a great restaurant operator. In
1996, Deno became Pizza Hut's CFO, and contributed to the brand's turnaround by
reengineering the business to improve product quality. He was promoted to CFO of
Tricon Restaurants International in 1997, Tricon's most complex and challenging
line operating financial job.
Tricon Global Restaurants, Inc. is the world's largest restaurant operator, with
over 30,000 company-owned and franchised restaurants in over 100 countries and
territories. The company's brands -- KFC, Pizza Hut and Taco Bell -- are the
global leaders of the pizza, chicken and Mexican-style restaurant categories,
respectively. Total worldwide system retail sales for the chains was more than
$20 billion in 1998.
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This announcement contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. 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 materially 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, fluctuations in commodity prices, supplier
contracts, and actuarially determined casualty loss estimates. 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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