================================================================================
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)
September 23, 1999
Commission file number 1-13163
-----------
TRICON GLOBAL RESTAURANTS, INC.
(Exact name of registrant as specified in its charter)
North Carolina 13-3951308
- ---------------------------------- ----------------------
(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
================================================================================
<PAGE>
Item 5. OTHER EVENTS
------------
On September 23, 1999, TRICON Global Restaurants, Inc.
issued a press release announcing a $350 million share
repurchase program and anticipated third quarter and full
year 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 September 23, 1999 from TRICON
Global Restaurants, Inc.
2
<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.
------------------------------------------
(Registrant)
Date: September 23, 1999 /s/ Robert L. Carleton
--------------------- ------------------------------------------
Robert L. Carleton
Senior Vice President and Controller
(Principal Accounting Officer)
3
<PAGE>
EXHIBIT 99
TRICON GLOBAL RESTAURANTS ANNOUNCES
$350MM SHARE REPURCHASE PROGRAM
LOUISVILLE, KY (September 23, 1999) -- Tricon Global Restaurants, Inc.
(NYSE:YUM) announced that its Board of Directors today authorized the repurchase
of up to $350 million of the company's outstanding common stock.
Andrall Pearson, Chairman and CEO said: "The Board's action is the strongest
statement we can make affirming our outlook for the company's potential for
significant profit growth and cash flow in the years ahead. This assessment of
the company's long-term investment potential is based on, among other things,
our confidence in Tricon's operating performance and fundamental growth
prospects. For example, we now expect to exceed analysts expectations in the
third quarter, largely as a result of improved operating performance at Pizza
Hut and Tricon Restaurants International, lower G&A and reduced interest
expense. We estimate that our operating EPS will be up about 20 percent in the
third quarter and up around 35 percent for the full year, representing another
outstanding year for the company."
"This year we expect to generate over $1 billion of free cash flow through a
combination of operating cash flow and proceeds from selling stores to our
franchise partners." Mr. Pearson continued, "We have the liquidity to reinvest
in our businesses, exceed our debt repayment targets, and invest in our own
stock. All of these actions are consistent with our objective to continue to
enhance value for our stakeholders."
Tricon expects to report third quarter results on October 12, 1999.
Repurchases of common stock may be made from time to time in open market and/or
privately negotiated transactions, and will be subject to market conditions and
other factors.
1
<PAGE>
Tricon is the world's largest restaurant company in terms of system units, with
nearly 30,000 restaurants around the world in over 100 countries and
territories. Tricon's three brands, KFC, Pizza Hut and Taco Bell are the global
leaders of the chicken, pizza and Mexican restaurant categories, respectively.
Total worldwide system retail sales for the brands were more than $20 billion in
1998.
These statements contained in this release that are not historical facts are
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
materially from those projected in these statements. Factors that can cause
actual results to differ are discussed in the Company's Form 10-K for the year
ended December 26, 1998, and subsequent filings with the Securities and Exchange
Commission.
Contact: Lynn A. Tyson
Vice President, Investor Relations
502-874-8617
2
