Investor / Analyst Day

May 31, 2006

Investor / Analyst Day

May 31, 2006

Tim JerzykVice President, Investor Relations

Tim JerzykVice President, Investor Relations

Thoughts About . . . Thoughts About . . .

Information herein is as of April 24, 2006Information herein is as of April 24, 2006

This presentation includes forward-looking statements that reflect management’s expectations based on currently available data. However, actual results are subject to future events and uncertainties. The information in the presentation related to projections or other forward-looking statements may be relied on subject to the safe harbor statement posted on our Web site: www.yum.com.

This presentation includes forward-looking statements that reflect management’s expectations based on currently available data. However, actual results are subject to future events and uncertainties. The information in the presentation related to projections or other forward-looking statements may be relied on subject to the safe harbor statement posted on our safe harbor statement posted on our Web site: Web site: www.yum.comwww.yum.com..

YRI DivisionYRI DivisionGeographic and Brand Diversity

Global infrastructure in place

Consistent unit growth…7 straight years of +3%

Consistent profit growth

Mega markets…just beginning to develop

India, Continental Europe and Russia

Investing for sustained long term growth…beyond 5+ years

Taco Bell International

Strong operating margin, ROIC and Free cash flow

A highly valuable business

Geographic and Brand Diversity

Global infrastructure in place

Consistent unit growth…7 straight years of +3%

Consistent profit growth

Mega markets…just beginning to develop

India, Continental Europe and Russia

Investing for sustained long term growth…beyond 5+ years

Taco Bell International

Strong operating margin, ROIC and Free cash flow

A highly valuable business

YRI Division’s Top 6 CurrenciesYRI Division’s Top 6 Currencies

Korean Won

Japanese Yen

Canadian Dollar

Mexican Peso

Australian Dollar

British Pound ± 10% GBP = ~$10 millionYRI Op Profit

± 10% GBP = ~$10 millionYRI Op Profit

YRI Overview

Graham Allan President, Yum! Restaurants International

YRI Overview

Graham Allan President, Yum! Restaurants International

Yum! Key StrategiesYum! Key Strategies

Build Dominant CHINA Brands

Build Dominant CHINA Brands

Drive PROFITABLE International Expansion

Drive PROFITABLE International Expansion

Run GREAT

Restaurants

Run GREAT

Restaurants

MultibrandGREATBrands

MultibrandGREATBrands

Drive Profitable International ExpansionDrive Profitable International ExpansionProfitably expand KFC as leading chicken QSR

Profitably expand Pizza Hut as leader in affordable casual / family dining

Drive differentiated Pizza Hut delivery-unit expansion

Franchise-led development in most markets

Equity ownership in markets offering significant scale, growth and returns

Drive world class operations

Profitably expand KFC as leading chicken QSR

Profitably expand Pizza Hut as leader in affordable casual / family dining

Drive differentiated Pizza Hut delivery-unit expansion

Franchise-led development in most markets

Equity ownership in markets offering significant scale, growth and returns

Drive world class operations

Our Success FactorsOur Success Factors

Brands which work all over the world

Strong local capability in 17 offices around the world

Over $275 million G&A Invested

Demonstrated marketing excellence, product innovation ability -global best-practice sharing

Strong supply-chain infrastructure: Global product strategies, local sourcing

700+ franchisees

Brands which work all over the world

Strong local capability in 17 offices around the world

Over $275 million G&A Invested

Demonstrated marketing excellence, product innovation ability -global best-practice sharing

Strong supply-chain infrastructure: Global product strategies, local sourcing

700+ franchisees

Two Global BrandsTwo Global Brands

Where we are today

Over 11,500 units across 111 countries / territories

88% operated by franchisees & unconsolidated affiliates

$8.5Bn in franchise sales

Revenues over $2Bn

Where we are today

Over 11,500 units across 111 countries / territories

88% operated by franchisees & unconsolidated affiliates

$8.5Bn in franchise sales

Revenues over $2Bn

6,307

4,701

TB / LJS / A&W 506

By BRAND

YRI System Units

Consistent Profitable ExpansionConsistent Profitable Expansion

Number of Restaurants

Company

Franchise

9,3969,827

10,418 10,76211,093 11,514

’00 ’01 ’02 ’03 ’04 ’05

Note: Includes license units

Strong Track Record of Profit GrowthStrong Track Record of Profit Growth

Operating Profit($ million)

10% 5-Year CAGR

/1

/1 Includes op profit benefit of 53rd Week: $4MM in 2000 and $6MM in 2005/2 Excluding Stock Options expense of $12.3MM; reported op profit was $372MM

$243 $242 $241$280

$337

$385

‘00 ‘01 ‘02 ‘03 ‘04 ‘05/1

/2

While Investing for Continued Long-Term Expansion

While Investing for Continued Long-Term Expansion

$(15) million loss vs. $(27) million loss in 2004

55 new-restaurant openings in ’05

KFC France: Already profitable

India: Already profitable with huge potential

$(15) million loss vs. $(27) million loss in 2004

55 new-restaurant openings in ’05

KFC France: Already profitable

India: Already profitable with huge potential

Emerging MarketsOperating Profit ($ Millions)

(5)(9)

(17)

(31)(27)

(15)

‘00 ‘01 ‘02 ‘03 ‘04 ‘05

Strong Progress in KFC FranceStrong Progress in KFC France

Huge potential market — 60+ million people, McD with 1,000+units

41 KFC units currently, primarily company (78%)

7 units added in ’05

Highest Per Store Average (PSA) Sales in the world

System sales growth of 42% in ’05, 40% 5-yr CAGR

Securing sites is biggest challenge… making progress

Huge potential market — 60+ million people, McD with 1,000+units

41 KFC units currently, primarily company (78%)

7 units added in ’05

Highest Per Store Average (PSA) Sales in the world

System sales growth of 42% in ’05, 40% 5-yr CAGR

Securing sites is biggest challenge… making progress

Why We Are So Optimistic about IndiaWhy We Are So Optimistic about India

Tremendous long-term GDP growth potential

Large middle class, growing rapidly

Open landscape for well-executed brands

118 Pizza Hut units and 11 KFC units

Yum! success factors

Infrastructure in place - local team, supply chain established

Pizza Hut, a highly trusted brand

Well-resourced franchisees

Full speed ahead on development

Tremendous long-term GDP growth potential

Large middle class, growing rapidly

Open landscape for well-executed brands

118 Pizza Hut units and 11 KFC units

Yum! success factors

Infrastructure in place - local team, supply chain established

Pizza Hut, a highly trusted brand

Well-resourced franchisees

Full speed ahead on development

Partnering in Russia to Pursue Exciting Opportunity

Partnering in Russia to Pursue Exciting Opportunity

140+ million people

Acquired trademarks of popular local chicken brand, Rostik’s

Strong market reputation and consumer acceptance

Provide immediate presence and local market expertise in a key potential growth market

Starting to convert 100+ Rostik’s locations to co-brand with KFC

140+ million people

Acquired trademarks of popular local chicken brand, Rostik’s

Strong market reputation and consumer acceptance

Provide immediate presence and local market expertise in a key potential growth market

Starting to convert 100+ Rostik’s locations to co-brand with KFC

Even More Long-Term Expansion Opportunities

Even More Long-Term Expansion Opportunities

Solid growth achievable from KFC and PH Dine-In

Taco Bell International

Investing behind capability now

Just starting to tap into . . .

Latin America

Eastern Europe & Russia

Solid growth achievable from KFC and PH Dine-In

Taco Bell International

Investing behind capability now

Just starting to tap into . . .

Latin America

Eastern Europe & Russia

Creating a High-Return, Steady Growth Company

Harmit SinghSVP & CFO, Yum! Restaurants International

Creating a High-Return, Steady Growth Company

Harmit SinghSVP & CFO, Yum! Restaurants International

Business Trends in 2006Business Trends in 2006

Franchise market strength continues… healthy SSS growth and rapid development

1st half softness in our UK and PH Korea company markets

Expect stronger results in 2nd half due to improving trends and easier lap

Company markets — Mexico, Australia and Canada — positive SSS growth and higher op profits

Emerging Markets continue to improve led by KFC France

Franchise market strength continues… healthy SSS growth and rapid development

1st half softness in our UK and PH Korea company markets

Expect stronger results in 2nd half due to improving trends and easier lap

Company markets — Mexico, Australia and Canada — positive SSS growth and higher op profits

Emerging Markets continue to improve led by KFC France

System Units2005

YRI is a Diverse Franchise BusinessYRI is a Diverse Franchise Business

By GEOGRAPHY

Asia36% Americas

23%

Europe22%

Australia / New Zealand 9%

Mid East/S Africa 10%

By OWNERSHIP

Franchise & Unconsolidated Affiliates

88%

Company12%

Franchise Business has Grown Consistently

Franchise Business has Grown Consistently

Robust, growing franchise business

700+ franchise partners

Constitutes nearly 70% of YRI profits before G&A

Driving 90% of YRI development

Consistent growth

Robust, growing franchise business

700+ franchise partners

Constitutes nearly 70% of YRI profits before G&A

Driving 90% of YRI development

Consistent growth

Franchise & License Fees($ million)

13% 5-Year CAGR

240

335

448

‘00 ‘03 ‘05

Both Brands GrowingBoth Brands GrowingSystem Units

4,9145,179

5,4655,698

5,944 6,0846,307

’99 ’00 ’01 ’02 ’03 ’04 '05

3,8113,968

4,1234,249 4,357

4,5284,701

’99 ’00 ’01 ’02 ’03 ’04 '05

+4% CAGR +4% CAGR

Note: Includes license units

Though Capital Needs are LowerThough Capital Needs are Lower

137 12896 ~100

178

* Excludes Stock Options expensing. With Stock Options expense $470MM and $495MM+ in ’05 and ’06 respectively** Operating Profit before Net Facility Action, with Depreciations & Amortization added back

‘02 ‘03 ‘04 ’05* ’06F*

330372

441482*

505+*

Capital Spending

EBITDA**

EBITDA & Capital Spending($ million)

Returns at Record LevelReturns at Record Level

16%18%

17%19% 19%+

ROIC

‘02 ‘03 ‘04 ‘05 ’06F

Strong Operating Margin …and ImprovingStrong Operating Margin …and Improving

Note: Operating Profit as % of Revenue, excludes stock option expenses; including stock option expense: 2005 operating margin was 17.5% and 2006F operating margin is estimated to be 18%+

Operating Margin

14%15%

16%18% 18%+

‘02 ‘03 ‘04 ‘05 ’06F

We Follow an ‘Earn the Right to Own’ MentalityWe Follow an ‘Earn the Right to Own’ Mentality

Refranchising

10+87751045Net Proceeds($ million)

RussiaPH CanadaAcquisition

PH CanadaPH AustraliaPH France

PH CanadaPH FrancePH AustraliaCanada RE

PH CanadaPH FrancePH Australia

KFC UKPH France

Targeted Activity

US VIPoland/1Puerto RicoKFC Venezuela

PH GermanyKFC Spain

SingaporeKFC S. Africa

Entire Market’06F’05’04’03’02

/1 IPO of the 50% Yum! stake in JV company

Significant Room to Grow…Significant Room to Grow…

McDonald's Yum! Starbucks Burger King Domino's Brinker

~$2,000

$583China

YRI $86 $37 $5

2005 International Profits Estimates($ million)

$60

… Whichever Way We Look… Whichever Way We Look

People / Restaurant (KFC & PH)

in ’000s

US 23

UK 44

Mexico 208

SE Asia 301

Europe 336

Russia 4,500

India 8,400

People / Restaurant (KFC & PH)

in ’000s

US 23

UK 44

Mexico 208

SE Asia 301

Europe 336

Russia 4,500

India 8,400

Estimated Restaurant Count

McD KFC PH

Europe 5,200 360 720

Asia/1 5,200 2,250 1,500

Americas/2 3,000 1,500 1,000

UK 1,250 700 700

/1 Excludes China Division /2 For International business, therefore excludes U.S.A.

Global Brands

Micky Pant CMO, Yum! Restaurants International

Global Brands

Micky Pant CMO, Yum! Restaurants International

“Marketing is too important to leave to the Marketing Department”

- Bill Hewlett

“Marketing is too important to leave to the Marketing Department”

- Bill Hewlett

At YRI, Strengthening the Brand is a At YRI, Strengthening the Brand is a Comprehensive Exercise involving all functionsComprehensive Exercise involving all functions

KFC & Pizza Hut – World’s Top 100 BrandsKFC & Pizza Hut – World’s Top 100 Brands

Source: InterbrandSurvey of Top 100 Brands

July 2005

KFC Has Towering StrengthsKFC Has Towering Strengths

Pizza Hut has towering strengths and heritagePizza Hut has towering strengths and heritage

Source: Qualitative Research

Restaurant BasedRestaurant BasedEven where restaurant

base is in decline(Aus, Mexico, Can)

imagery is rootedin dine-in

InclusiveInclusiveA place TEENS can feel grown up in,

could take their first date to.A treat TWEENS look

forward to.

Informal EatingInformal EatingGenerally a step above

fast food but still fun, socialrelaxed, not too formal,

friendly service, stress free.

QualityQualityGreat taste, good for dinner,

wholesome,pizza innovation.

Great for FamiliesGreat for Families(and large groups!)

Place where you can relax,feel at home, not worry abouthow the kids behave, eat and be together, act like a family

Our Strength in Dine-in+

Growth of Delivery Market =

Two Opportunities of a Lifetime

Our Strength in DineOur Strength in Dine--inin+ +

Growth of Delivery Market Growth of Delivery Market = =

Two Opportunities of a LifetimeTwo Opportunities of a Lifetime

Now we are setting our sights higherNow we are setting our sights higher

Note: The non-Yum! logos above are registered trademarks of Nike, McDonald’s and Apple.

At Yum we have a codified, disciplined marketing process

At Yum we have a codified, disciplined marketing process

We use the Aaker Model for Brand Identity.Our organizing principles are based on Consumer Insights.We have clear process for product development and testing.We have a disciplined process for advertising development and testing.We are rigorous about Calendar Planning.Our Mantra is “Ready – Aim – Fire”, we do not believe in flying blind or replacing process by gut feel.This is the only way we can operate in over 80 markets with consistency.

We use the Aaker Model for Brand Identity.Our organizing principles are based on Consumer Insights.We have clear process for product development and testing.We have a disciplined process for advertising development and testing.We are rigorous about Calendar Planning.Our Mantra is “Ready – Aim – Fire”, we do not believe in flying blind or replacing process by gut feel.This is the only way we can operate in over 80 markets with consistency.

MarketingModelMarketingModel

We use The Aaker model for Brand Identity Definition

We use The Aaker model for Brand Identity Definition

1 Core IdentityBrand Associations

Example: Aaker Brand Identity System for KFC

Example: Aaker Brand Identity System for KFC

CredibilityPermission to Claim

Value PropositionBrand Benefit

2 3

Brand As ProductBrand As Product

•• ““WowWow”” flavorsflavors•• Signature recipesSignature recipes•• Freshly prepared using real chickenFreshly prepared using real chicken•• Contrasting textures or flavorsContrasting textures or flavors•• Leadership QualityLeadership Quality

Brand as PlaceBrand as Place•• Freshly cooked FoodFreshly cooked Food•• Informal and InvitingInformal and Inviting•• Energetic and YouthfulEnergetic and Youthful

Brand as SymbolBrand as Symbol

The Colonel

The Bucket

Red and White

“Finger Lickin’ Good”

Colonel Sanders himself!Colonel Sanders himself!

Always young at heartAlways young at heart, he had a , he had a keen interest in what young people keen interest in what young people and young families enjoyed and and young families enjoyed and wantedwanted

He He loved Cookingloved Cooking, and coming up , and coming up with innovative new recipes. He was with innovative new recipes. He was relentless about Qualityrelentless about Quality

He had a He had a great sense of fungreat sense of fun

““Colonel Sanders was the most Colonel Sanders was the most exciting man I have ever knownexciting man I have ever known”” ––Dave Thomas, founder of WendyDave Thomas, founder of Wendy’’ss

Brand as PersonBrand as Person

Brand as OrganizationBrand as Organization

Customer ManiacsCustomer Maniacs•• Genuine and FriendlyGenuine and Friendly•• Attentive and PromptAttentive and Prompt•• Dedicated to QualityDedicated to Quality

of the brand.

• Passionate• Genuine• Honest• Proud• Forward thinking

• The Colonel• The Bucket• Red and White• 11 herbs and spices• Finger Lickin’

• Innovative• Dedicated to excellence• Leaders• Rich heritage

CredibilityThe colonel, his expertise, his secret recipes

• Real Chicken & other real foods Freshly prepared

• Leadership Quality• Wow Flavors • Inventive, signature

recipes

• Food Served Fast• Casual and Relaxing• Place to relish good food• Family Friendly• Welcoming, Inviting• Fresh, Bright and

Contemporary • Colorful, vibrant

Complete Aaker Model for KFCComplete Aaker Model for KFC

Value Proposition (Brand Benefit)FUNCTIONAL; home-made quality; unique, inimitable taste; convenient, wholesome meals & snacks. EMOTIONAL; uninhibited enjoyment; total sensory engagement – head, heart & soul; moments to savor; part of my life; an irreplaceable experience

For Clarity we also define a Brand EssenceFor Clarity we also define a Brand Essence

Note: The non-Yum! logos above are registered trademarks of Nike and Apple.

When you add it all up, it’s all about tasty, finger lickin’ good food

and the sheer pleasure of eating it.

TasteTaste

We Are Taking a Holistic Approach We Are Taking a Holistic Approach to Make This Happento Make This Happen

Taste

Implications for MenuImplications for Menu

Flavor Excitement

Enjoy My Family Time

Make Mealtime Easy

Fit my Budget

Busy Lifestyle (Portability)

Satisfy Me

Feel Better About Fast Food

Flavor ExcitementFlavor Excitement

Enjoy My Family TimeEnjoy My Family Time

Make Mealtime EasyMake Mealtime Easy

Fit my Budget Fit my Budget

Busy Lifestyle (Portability)Busy Lifestyle (Portability)

Satisfy MeSatisfy Me

Feel Better About Fast FoodFeel Better About Fast Food

Key Need StatesGroup Meals— Family Meal— Variety BucketIndividual Meals— COB— Crispy StripsPortability— Zinger— Twister— OR FilletValue Menu— Snacker

Menu Solutions

70%Global

30%Localized

Brand Organizing Principles

The New Logo Says “Taste”and is Younger

The New Logo Says “Taste”and is Younger

• Youthful energy, modern flairYouthful energy, modern flair•• Apron, to signal his passion for great tasting foodApron, to signal his passion for great tasting food•• Friendlier, more welcomingFriendlier, more welcoming•• Phased execution approach has been developedPhased execution approach has been developed

To clarify, this approach is not about “Mindless Globalization”

To clarify, this approach is not about “Mindless Globalization”

Fundamental Human value

Core brand benefit / Value proposition

Sub-brands

Brand Personality

Asset and Ad Tenets

Target Occasions & segments

Marketing Programs

Calendar

Advertising

Fundamental Human value

Core brand benefit / Value proposition

Sub-brands

Brand Personality

Asset and Ad Tenets

Target Occasions & segments

Marketing Programs

Calendar

Advertising

Globally Consistent

AdaptableEnduring

Locally Defined

Close

Graham Allan President, Yum! Restaurants International

Close

Graham Allan President, Yum! Restaurants International

Confident of 2006 and BeyondConfident of 2006 and Beyond

Expect continued strength across franchise businesses

More process and discipline around marketing & communication

Strong new product pipeline – global best-practice sharing

Healthy, growing development pipeline… room for more growth in most markets

More good news from our emerging markets – India, France, Netherlands & Russia

Expect continued strength across franchise businesses

More process and discipline around marketing & communication

Strong new product pipeline – global best-practice sharing

Healthy, growing development pipeline… room for more growth in most markets

More good news from our emerging markets – India, France, Netherlands & Russia

Yum! Restaurant International DivisionYum! Restaurant International Division

Strong Organizational CapabilityStrong Organizational CapabilityStrong Organizational Capability

Clear Growth StrategyClear Growth StrategyClear Growth Strategy

Significant, Healthy, Growing Franchise Businesses

Significant, Healthy, Growing Significant, Healthy, Growing Franchise BusinessesFranchise Businesses

High Return ExpansionHigh Return Expansion

Yum! International DivisionYum! International Division

System-sales growth of at least +5% (Local Currency Basis)

Net unit growth of at least +3%

Operating profit growth of +10%

HIGH RETURNS!

System-sales growth of at least +5% (Local Currency Basis)

Net unit growth of at least +3%

Operating profit growth of +10%

HIGH RETURNS!HIGH RETURNS!

What to Expect