<SUBMISSION>
<ACCESSION-NUMBER>0001157523-02-000674
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>4
<PERIOD>20020615
<FILING-DATE>20020729
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>YUM BRANDS INC
<CIK>0001041061
<ASSIGNED-SIC>5812
<IRS-NUMBER>133951308
<STATE-OF-INCORPORATION>NC
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-13163
<FILM-NUMBER>02713310
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1441 GARDINER LANE
<CITY>LOUISVILLE
<STATE>KY
<ZIP>40213
<PHONE>5028748300
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1900 COLONEL SANDERS LANE
<CITY>LOUISVILLE
<STATE>KY
<ZIP>40213
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>GREAT AMERICAN RESTAURANT CO
<DATE-CHANGED>19970618
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>TRICON GLOBAL RESTAURANTS INC
<DATE-CHANGED>19970627
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d51163_10-q.htm
<DESCRIPTION>YUM! BRANDS 10-Q
<TEXT>
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     <!-- Control Number: 02-51163                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Business Wire                                                    -->
     <!-- Project Name:   Form: 10-Q                                                       -->
     <!-- Firm Name:      Yum! Brands, Inc.                                                -->
     <TITLE>Form 10-Q</TITLE>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D. C. 20549</FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM 10-Q</FONT></H1>





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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(Mark One)</FONT></H2>


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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>|X|</B></FONT></FONT> </TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B></B></FONT></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the
quarterly period ended June 15, 2002</B></FONT></FONT> </TD>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OR</FONT></H1>

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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>|&nbsp; |</B></FONT></FONT> </TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B></B></FONT></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></FONT></FONT> </TD>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2"><B>For the transition
period from ____________ to _________________</B></FONT></FONT> </P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2"><B>Commission file number
1-13163</B></FONT></FONT> </P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2"><B>YUM! BRANDS, INC.</B><BR>(Exact
name of registrant as specified in its charter)</FONT></FONT> </P>

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    <th><font face="Times New Roman, Times, Serif" size="1"></font></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign="BOTTOM">
    <td align="center">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2"><U>North
      Carolina</U></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align="center"><font face="Times New Roman, Times, Serif" size="2"><U>13-3951308</U></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
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  <tr valign="BOTTOM">
    <td align="center">&nbsp;</td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">(State
      or other jurisdiction of</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="center"><font face="Times New Roman, Times, Serif" size="2">(I.R.S.
      Employer</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="center">&nbsp;</td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">incorporation
      or organization)</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="center"><font face="Times New Roman, Times, Serif" size="2">Identification
      No.)</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
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     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
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     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="44%" ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1441 Gardiner Lane, Louisville, Kentucky</FONT></TD>
     <TD WIDTH="18%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="21%" ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">40213</FONT></TD>
     <TD WIDTH="8%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Address of principal executive offices)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Zip Code)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Registrant&#146;s telephone
number, including area code: (502) 874-8300  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>TRICON GLOBAL
RESTAURANTS, INC. <BR>(Former name, former address and former fiscal year, <BR>if changed since
last report)  </FONT></P>


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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or<BR>15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days. Yes |X| No |&nbsp; | </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
number of shares outstanding of the Registrant&#146;s Common Stock as of July 23, 2002
was 296,975,176 shares.  </FONT></P>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>YUM! BRANDS,
INC.</FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INDEX</FONT></H1>

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    <th height="22">&nbsp;</th>
    <th nowrap height="22" align="center"><font face="Times New Roman, Times, Serif" size="1">Page
      No. </font></th>
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    <td align="LEFT">&nbsp;</td>
    <td align="LEFT">&nbsp;</td>
    <td align="RIGHT">
      <hr size="1" noshade>
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  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Part
      I. Financial Information</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"></font></td>
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    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
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    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
      Statements</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <A HREF="#income">Condensed
      Consolidated Statements of Income - 12 and 24 weeks ended June 15, 2002,
      and</A><br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#income">June
      16, 2001</A> </font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">3</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <A HREF="#cash_flows">Condensed
      Consolidated Statements of Cash Flows - 24 weeks ended June 15, 2002 and</A><br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#cash_flows">June
      16, 2001</A> </font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">4</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <A HREF="#balance_sheets">Condensed
      Consolidated Balance Sheets - June 15, 2002 and December 29, 2001</A></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">5</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <A HREF="#notes">Notes
      to Condensed Consolidated Financial Statements</A></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">6</font></td>
  </tr>
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    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#management">Management&#146;s
      Discussion and Analysis of Financial Condition and Results of</A> <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <A HREF="#management">Operations</A></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">20</font></td>
  </tr>
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    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#quantitative">Quantitative
      and Qualitative Disclosures About Market Risk</A></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">33</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#report">Independent
      Accountants&#146; Review Report</A></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">36</font></td>
  </tr>
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    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Part
      II. Other Information and Signatures</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#legal_proceeding">Item
      1 - Legal Proceedings</A></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">37</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#submission">Item
      4 - Submission of Matters to a Vote of Security Holders</A></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">37</font></td>
  </tr>
    <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
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    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#exhibits">Item
      6 - Exhibits and Reports on Form 8-K</A></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">37</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#signatures">Signatures</A></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">39</font></td>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>2</FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>PART I &#151;
FINANCIAL INFORMATION</FONT></H2>

<A NAME="income"></A>
<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>CONDENSED CONSOLIDATED
STATEMENTS OF INCOME</B> <BR>YUM! BRANDS, INC. AND SUBSIDIARIES <BR>
(in millions, except per share data - unaudited) </FONT></FONT> </P>

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  <tr valign="BOTTOM">
    <th colspan="2">&nbsp;</th>
    <th colspan="5"><b><font size="1" face="Times New Roman, Times, serif">12
      Weeks Ended</font></b></th>
    <th><b><font size="1" face="Times New Roman, Times, serif"></font></b></th>
    <th colspan="5"><b><font size="1" face="Times New Roman, Times, serif">24
      Weeks Ended</font></b></th>
    <th>&nbsp;</th>
  </tr>
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    <th colspan="2">&nbsp;</th>
    <th colspan="5" align="center">
      <hr NOSHADE color="Black" size="1">
    </th>
    <th align="center">&nbsp;</th>
    <th colspan="5" align="center">
      <hr NOSHADE color="Black" size="1">
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    <th>&nbsp;</th>
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    <th colspan="2"><font face="Times New Roman, Times, Serif" size="1"></font></th>
    <th colspan="2" align="center"><font face="Times New Roman, Times, Serif" size="1">
      6/15/02 </font></th>
    <th align="center">&nbsp;</th>
    <th colspan="2" align="center"><font face="Times New Roman, Times, Serif" size="1">6/16/01
      </font></th>
    <th align="center">&nbsp;</th>
    <th colspan="2" align="center"><font face="Times New Roman, Times, Serif" size="1">6/15/02
      </font></th>
    <th align="center">&nbsp;</th>
    <th colspan="2" align="center"><font face="Times New Roman, Times, Serif" size="1">6/16/01</font></th>
    <th>&nbsp;</th>
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    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2"><b>Revenues</b></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Company
      sales</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 1,571</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 1,416</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 2,997</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 2,742</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Franchise
      and license fees</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">196</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">189</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">384</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">369</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">1,767</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">1,605</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">3,381</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">3,111</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2"><b>Costs
      and Expenses, net</b></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Company
      restaurants</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;Food
      and paper</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">482</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">442</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">921</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">852</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;Payroll
      and employee benefits</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">422</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">390</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">817</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">761</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;Occupancy
      and other operating expenses</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">405</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">378</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">774</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">737</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">1,309</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">1,210</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">2,512</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">2,350</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">General
      and administrative expenses</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">215</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">190</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">397</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">363</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Franchise
      and license expenses</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">9</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">17</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">19</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">34</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Other
      (income) expense</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(8</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(5</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(13</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(9</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Facility
      actions net loss (gain)</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">10</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(18</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">19</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(16</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Unusual
      items (income) expense</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(9</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(4</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(20</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(2</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Total
      costs and expenses, net</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">1,526</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">1,390</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">2,914</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">2,720</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2"><b>Operating
      Profit</b></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">241</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">215</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">467</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">391</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Interest
      expense, net</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">33</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">37</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">67</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">76</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2"><b>Income
      Before Income Taxes</b></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">208</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">178</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">400</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">315</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Income
      tax provision</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">68</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">62</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">136</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">111</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">Net
      Income</font></b></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 140</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 116</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 264</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 204</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"><b></b></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">Basic
      Earnings Per Common Share</font></b></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 0.47</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 0.40</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 0.89</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 0.70</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"><b></b></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">Diluted
      Earnings Per Common Share</font></b></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 0.45</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 0.38</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 0.85</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 0.68</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
  </tr>
</table>
<BR>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>See
accompanying Notes to Condensed Consolidated Financial Statements. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>3</FONT></P>

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</TD>
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<BR>

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<BR>


<A NAME="cash_flows"></A>
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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS</B> <BR>YUM! BRANDS, INC. AND SUBSIDIARIES <BR>
(in millions - unaudited) </FONT></FONT> </P>

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</TD>
</TR>
</TABLE>
<BR>

<table cellpadding="0" cellspacing="0" border="0" width="600">
  <tr valign="BOTTOM">
    <th colspan="2">&nbsp;</th>
    <th colspan="5"><b><font face="Times New Roman, Times, serif" size="1">24
      Weeks Ended</font></b></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign="BOTTOM">
    <th colspan="2">&nbsp;</th>
    <th colspan="5">
      <hr NOSHADE color="Black" size="1">
    </th>
    <th>&nbsp;</th>
  </tr>
  <tr valign="BOTTOM">
    <th colspan="2"><font face="Times New Roman, Times, Serif" size="1"></font></th>
    <th colspan="2"><font face="Times New Roman, Times, Serif" size="1">6/15/02
      </font></th>
    <th>&nbsp;</th>
    <th colspan="2"><font face="Times New Roman, Times, Serif" size="1">6/16/01</font></th>
    <th>&nbsp;</th>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td width="81%" align="LEFT"><font face="Times New Roman, Times, Serif" size="2"><b>Cash
      Flows - Operating Activities</b></font></td>
    <td width="2%" align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td width="1%" align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td width="4%" align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"></font></td>
    <td width="4%" align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td width="1%" align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td width="4%" align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"></font></td>
    <td width="2%" align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Net Income</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 264</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 204</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Adjustments
      to reconcile net income to net cash provided by operating</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;activities:</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Depreciation
      and amortization</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">158</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">158</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Facility
      actions net loss (gain)</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">19</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(16</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Unusual
      items (income) expense</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(1</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(6</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Other
      liabilities and deferred credits</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">21</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(40</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Deferred
      income taxes</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(1</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(24</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Other
      non-cash charges and credits, net</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">19</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">13</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Changes
      in operating working capital, excluding effects of acquisitions and</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;dispositions:</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Accounts
      and notes receivable</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">10</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">60</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Inventories</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(3</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(5</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Prepaid
      expenses and other current assets</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">19</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(12</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Accounts
      payable and other current liabilities</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(78</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(94</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Income
      taxes payable</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">71</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">64</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;Net
      change in operating working capital</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">19</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">13</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2"><b>Net
      Cash Provided by Operating Activities</b></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">498</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">302</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2"><b>Cash
      Flows - Investing Activities</b></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Capital
      spending</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(273</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(203</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Proceeds
      from refranchising of restaurants</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">24</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">62</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Acquisition
      of Yorkshire Global Restaurants, Inc.</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(271</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&#151;</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Acquisition
      of restaurants from franchisees</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(11</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(102</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Short-term
      investments</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">5</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(11</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Sales
      of property, plant and equipment</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">19</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">16</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Other,
      net</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(22</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">28</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2"><b>Net
      Cash Used In Investing Activities</b></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(529</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(210</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2"><b>Cash
      Flows - Financing Activities</b></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Proceeds
      from Senior Unsecured Notes</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&#151;</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">842</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Revolving
      Credit Facility activity, by original maturity</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;Three
      months or less, net</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">126</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(682</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Proceeds
      from long-term debt</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&#151;</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">1</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Repayments
      of long-term debt</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(74</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(252</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Short-term
      borrowings-three months or less, net</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">6</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">60</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Repurchase
      shares of common stock</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(68</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(21</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Employee
      stock option proceeds</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">99</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">20</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Other,
      net</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(2</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(10</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">Net
      Cash Provided by (Used In) Financing Activities</font></b></td>
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></b></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">87</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(42</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr>
    <td colspan="2"><b></b></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">Effect
      of Exchange Rate on Cash and Cash Equivalents</font></b></td>
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></b></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">3</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&#151;</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"><b></b></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">Net
      Increase in Cash and Cash Equivalents</font></b></td>
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></b></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">59</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">50</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">Cash
      and Cash Equivalents - Beginning of Period</font></b></td>
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></b></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">110</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">133</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"><b></b></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">Cash
      and Cash Equivalents - End of Period</font></b></td>
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></b></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 169</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 183</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"><b></b></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
  </tr>
</table>
<BR>

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<TD>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>See
accompanying Notes to Condensed Consolidated Financial Statements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>4</FONT></P>

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<BR>

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<BR>

<A NAME="balance_sheets"></A>
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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>CONDENSED CONSOLIDATED
BALANCE SHEETS</B> <BR>YUM! BRANDS, INC. AND SUBSIDIARIES <BR>
(in millions) </FONT></FONT> </P>

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</TD>
</TR>
</TABLE>
<BR>

<table cellpadding="0" cellspacing="0" border="0" width="600">
  <tr valign="BOTTOM">
    <th><b><font face="Times New Roman, Times, serif" size="1"></font></b></th>
    <th><b><font face="Times New Roman, Times, serif" size="1"></font></b></th>
    <th colspan="2" align="center"><b><font face="Times New Roman, Times, serif" size="1">6/15/02</font></b></th>
    <th align="center"><b><font face="Times New Roman, Times, serif" size="1"></font></b></th>
    <th colspan="2" align="center"><b><font face="Times New Roman, Times, serif" size="1">12/29/01</font></b></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign="top">
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <th><font face="Times New Roman, Times, Serif" size="1"></font></th>
    <th>&nbsp;</th>
    <th colspan="2" align="center" valign="top"><font face="Times New Roman, Times, Serif" size="1">(unaudited)</font></th>
    <th align="center">&nbsp;</th>
    <th colspan="2" align="center"><font face="Times New Roman, Times, Serif" size="1"></font></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign="BOTTOM">
    <td width="77%" align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">ASSETS</font></b></td>
    <td width="2%" align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td width="1%" align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td width="6%" align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"></font></td>
    <td width="4%" align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td width="1%" align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td width="6%" align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"></font></td>
    <td width="2%" align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">Current
      Assets</font></b></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Cash
      and cash equivalents</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 169</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 110</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Short-term
      investments, at cost</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">31</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">35</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Accounts
      and notes receivable, less allowance: $47 in 2002 and $77 in 2001</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">188</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">175</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Inventories</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">77</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">56</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Prepaid
      expenses and other current assets</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">82</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">92</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Deferred
      income taxes</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">83</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">79</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total
      Current Assets</b></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">630</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">547</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Property,
      plant and equipment, net</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">2,824</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">2,737</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Goodwill,
      net</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">298</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">59</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Intangible
      assets, net</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">105</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">399</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Investments
      in unconsolidated affiliates</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">213</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">213</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Assets
      classified as held for sale</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">44</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">44</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Other
      assets</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">959</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">389</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total
      Assets</b></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 5,073</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 4,388</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">LIABILITIES
      AND SHAREHOLDERS&#146; EQUITY</font></b></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">Current
      Liabilities</font></b></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Accounts
      payable and other current liabilities</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 994</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 995</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Income
      taxes payable</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">286</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">114</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Short-term
      borrowings</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">168</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">696</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;Total
      Current Liabilities</b></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">1,448</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">1,805</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Long-term
      debt</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">2,367</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">1,552</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Other
      liabilities and deferred credits</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">862</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">927</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;Total
      Liabilities</b></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">4,677</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">4,284</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2"><b>Shareholders&#146;
      Equity</b></font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Preferred
      stock, no par value, 250 shares authorized; no shares issued</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&#151;</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&#151;</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Common
      stock, no par value, 750 shares authorized; 298 shares and 293 shares</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;issued
      in 2002 and 2001, respectively</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">1,132</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">1,097</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Accumulated
      deficit</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(522</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(786</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Accumulated
      other comprehensive income (loss)</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(214</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(207</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      Shareholders&#146; Equity</font></b></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">396</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">104</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><b></b></td>
    <td>&nbsp;</td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><b><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      Liabilities and Shareholders&#146; Equity</font></b></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 5,073</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 4,388</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
  </tr>
</table>
<BR>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>See
accompanying Notes to Condensed Consolidated Financial Statements. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>5</FONT></P>

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<A NAME="notes"></A>
<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS </B><BR>(Tabular amounts in millions, except per
share data) <BR>(Unaudited) </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>1. Financial Statement
Presentation </FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have prepared our
accompanying unaudited Condensed Consolidated Financial Statements
(&#147;Financial Statements&#148;) in accordance with the rules and regulations
of the Securities and Exchange Commission for interim financial information.
Accordingly, they do not include all of the information and footnotes required
by accounting principles generally accepted in the United States of America for
complete financial statements. Therefore, we suggest that the accompanying
Financial Statements be read in conjunction with the Consolidated Financial
Statements and notes thereto included in our annual report on Form 10-K for the
fiscal year ended December 29, 2001 (&#147;2001 Form 10-K&#148;). Except as
disclosed herein, there has been no material change in the information disclosed
in the notes to our Consolidated Financial Statements included in the 2001 Form
10-K. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 16, 2002, Tricon Global
Restaurants, Inc. changed its name to YUM! Brands, Inc. in order to better reflect our
expanding portfolio of brands. In addition, on the same day Tricon Restaurants
International changed its name to YUM! Restaurants International. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our Financial Statements
include YUM! Brands, Inc. and its wholly owned subsidiaries (collectively
referred to as &#147;YUM&#148; or the &#147;Company&#148;). The Financial
Statements include our worldwide operations of KFC, Pizza Hut, Taco Bell and,
since May 7, 2002, Long John Silver&#146;s (&#147;LJS&#148;) and A&amp;W
All-American Food Restaurants (&#147;A&amp;W&#148;), which we added when we
acquired Yorkshire Global Restaurants, Inc. (&#147;YGR&#148;). References to YUM
throughout these notes to Financial Statements are made using the first person
notations of &#147;we,&#148; &#147;us&#148; or &#147;our.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our preparation of the
accompanying Financial Statements in conformity with accounting principles
generally accepted in the United States of America requires us to make estimates
and assumptions that affect reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the Financial
Statements, and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from the estimates. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In our opinion, the
accompanying Financial Statements include all adjustments considered necessary
to present fairly, when read in conjunction with our 2001 Form 10-K, our
financial position as of June 15, 2002, and the results of our operations for
the 12 and 24 weeks ended June 15, 2002 and June 16, 2001 and cash flows for the
24 weeks ended June 15, 2002 and June 16, 2001. Our results of operations for
these interim periods are not necessarily indicative of the results to be
expected for the full year. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have reclassified
certain items in the accompanying Financial Statements and Notes to the
Financial Statements in order to be comparable with the current classifications.
These reclassifications had no effect on previously reported net income. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>2. Acquisition of YGR </FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 7, 2002, YUM
completed its acquisition of YGR, the parent company of LJS and A&amp;W. As of
the date of the acquisition, YGR consisted of 742 and 496 company and franchise
LJS units, respectively, and 127 and 742 company and franchise A&amp;W units,
respectively. In addition, 133 multibranded LJS/A&amp;W restaurants were
included in the LJS unit totals. This acquisition was made to facilitate meeting
our strategic objective of achieving growth through multi-branding, where two or
more of our Concepts are operated in a single restaurant unit. </FONT></P>

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<TR VALIGN=TOP>
<TD>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>6</FONT></P>

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<BR>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We paid approximately $271
million in cash and assumed approximately $48 million of bank indebtedness in
connection with the acquisition of YGR. The bank indebtedness was paid off prior
to June 15, 2002. We also assumed approximately $160 million in future rent
obligations related to sale-leaseback agreements entered into by YGR prior to
2001 involving approximately 350 LJS units. As a result of liens held by the
buyer/lessor on certain personal property within the units, the agreements have
been accounted for as financings and are reflected as debt in our Financial
Statements. Accordingly, the assets subject to the agreements remain on our
balance sheet. This obligation plus approximately $11 million in capital lease
obligations assumed have been reflected on our Condensed Consolidated Balance
Sheet as of June 15, 2002 as Short-term borrowings ($2 million) and Long-term
debt ($169 million). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have retained a third
party valuation expert to assist us in the valuation of assets acquired. We
anticipate completion of this valuation and a preliminary purchase price
allocation prior to September 7, 2002, the end of our third quarter. As of June
15, 2002, approximately $515 million to be allocated is included in Other assets
on the Condensed Consolidated Balance Sheet. We have estimated the effects of
the allocation on earnings in the Condensed Consolidated Statements of Income
for the 12 and 24 weeks ended June 15, 2002. We do not believe that completion
of the allocation will result in significant differences from the estimates
included in our Condensed Consolidated Statements of Income. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If the acquisition had been
completed as of the beginning of the periods indicated on below, pro forma
company sales and franchise and license fees for the 12 and 24 weeks ended June
15, 2002 and June 16, 2001 would have been as follows: </FONT></P>

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<BR>

<table cellpadding="0" cellspacing="0" border="0" width="600">
  <tr valign="BOTTOM">
    <th colspan="3"><font face="Times New Roman, Times, Serif" size="1"></font></th>
    <th colspan="3" nowrap><font face="Times New Roman, Times, Serif" size="1">
      12 Weeks<br>
      Ended<br>
      6/15/02 </font></th>
    <th colspan="3" nowrap><font face="Times New Roman, Times, Serif" size="1">
      <br>
      12 Weeks<br>
      Ended<br>
      6/16/01</font></th>
    <th colspan="3" nowrap><font face="Times New Roman, Times, Serif" size="1">
      24 Weeks<br>
      Ended<br>
      6/15/02 </font></th>
    <th colspan="2" nowrap><font face="Times New Roman, Times, Serif" size="1">
      24 Weeks<br>
      Ended<br>
      6/16/01</font></th>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;</td>
    <td align="LEFT">&nbsp;</td>
    <td align="LEFT">&nbsp;</td>
    <td align="RIGHT" colspan="2">
      <hr size="1">
    </td>
    <td align="LEFT">&nbsp;</td>
    <td align="RIGHT" colspan="2">
      <hr size="1">
    </td>
    <td align="LEFT">&nbsp;</td>
    <td align="RIGHT" colspan="2">
      <hr size="1">
    </td>
    <td align="LEFT">&nbsp;</td>
    <td align="RIGHT" colspan="2">
      <hr size="1">
    </td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Company
      Sales</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 1,654</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 1,543</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 3,206</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 3,000</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Franchise
      and License Fees</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">199</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">195</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">392</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">379</font></td>
  </tr>
</table>
<BR>

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<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The impact of the
acquisition on net income and diluted earnings per share for these periods would
not have been significant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The pro forma information
is not necessarily indicative of the results of operations had the acquisition
actually occurred at the beginning of each of these periods nor is it
necessarily indicative of future results. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>3. Recently
Adopted Accounting Pronouncements</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Goodwill and Intangible Assets</U></FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company has adopted
Statement of Financial Accounting Standards (&#147;SFAS&#148;) No. 141,
&#147;Business Combinations&#148; (&#147;SFAS 141&#148;). SFAS 141 requires the
use of the purchase method of accounting for all business combinations and
modifies the application of the purchase accounting method. SFAS 141 also
specifies criteria to be used in determining whether intangible assets acquired
in a purchase method business combination must be recognized and reported
separately from goodwill. Prior to the adoption of SFAS 141, the Company&#146;s
business combinations have primarily consisted of acquiring restaurants from our
franchisees and have been accounted for using the purchase method of accounting.
The primary intangible asset to which we generally allocated value in these
business combinations was reacquired franchise rights. We have determined that
reacquired franchise rights do not meet the criteria of SFAS 141 to be
recognized as an asset apart from goodwill. Accordingly, on December 30, 2001 we
reclassified reacquired franchise rights to goodwill in the amount of $241
million, net of related deferred tax liabilities of $53 million. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>7</FONT></P>

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<BR>

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<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company has also
adopted SFAS No. 142, &#147;Goodwill and Other Intangible Assets&#148;
(&#147;SFAS 142&#148;). SFAS 142 eliminates the requirement to amortize goodwill
and indefinite-lived intangible assets, addresses the amortization of intangible
assets with a defined life, and addresses impairment testing and recognition for
goodwill and indefinite-lived intangible assets. SFAS 142 applies to goodwill
and intangible assets arising from transactions completed before and after its
effective date. As a result of adopting SFAS 142, we ceased amortization of
goodwill and indefinite-lived intangible assets beginning December 30, 2001.
Additionally, in accordance with the requirements of SFAS 142, we completed
separate transitional impairment tests of goodwill and indefinite-lived
intangible assets, as of December 30, 2001, which indicated that there was no
impairment. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table
provides a reconciliation of reported net income to net income for the 12 and 24
weeks ended June 16, 2001 adjusted as though SFAS 142 had been effective: </FONT></P>

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</TR>
</TABLE>
<BR>

<table cellpadding="0" cellspacing="0" border="0" width="600">
  <tr valign="BOTTOM">
    <th>&nbsp;</th>
    <th nowrap>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan="8" align="center"><font face="Times New Roman, Times, serif" size="1"><b>12
      Weeks Ended 6/16/01</b></font></th>
  </tr>
  <tr valign="BOTTOM">
    <th>&nbsp;</th>
    <th nowrap>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan="8" nowrap align="center">
      <hr NOSHADE color="Black" size="1">
    </th>
  </tr>
  <tr valign="BOTTOM">
    <th>&nbsp;</th>
    <th nowrap><font face="Times New Roman, Times, Serif" size="1"></font></th>
    <th>&nbsp;</th>
    <th colspan="2" nowrap align="center"><font face="Times New Roman, Times, serif" size="1">Amount</font></th>
    <th nowrap align="center"><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2" nowrap align="center"><font face="Times New Roman, Times, serif" size="1">Basic
      EPS </font></th>
    <th nowrap align="center"><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2" nowrap align="center"><font face="Times New Roman, Times, serif" size="1">Diluted
      EPS </font></th>
  </tr>
  <tr>
    <td></td>
    <td nowrap></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Reported
      net income</font></td>
    <td align="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 116</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 0.40</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 0.38</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;</td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Add back
      amortization expense (net of tax):</font></td>
    <td align="LEFT">&nbsp;</td>
    <td align="RIGHT">&nbsp;</td>
    <td align="RIGHT">&nbsp;</td>
    <td align="LEFT">&nbsp;</td>
    <td align="RIGHT">&nbsp;</td>
    <td align="RIGHT">&nbsp;</td>
    <td align="LEFT">&nbsp;</td>
    <td align="RIGHT">&nbsp;</td>
    <td align="RIGHT">&nbsp;</td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;</td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;Goodwill</font></td>
    <td align="LEFT">&nbsp;</td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">6</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">0.02</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">0.02</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;</td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Adjusted
      net income</font></td>
    <td align="LEFT">&nbsp;</td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 122</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 0.42</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 0.40</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
  </tr>
</table>
<BR>


<table cellpadding="0" cellspacing="0" border="0" width="600">
  <tr valign="BOTTOM">
    <th>&nbsp;</th>
    <th>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan="8" nowrap align="center"><font face="Times New Roman, Times, serif" size="1"><b>24
      Weeks Ended 6/16/01</b></font></th>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td align="RIGHT">&nbsp; </td>
    <td align="RIGHT" colspan="8">
      <hr NOSHADE color="Black" size="1">
    </td>
  </tr>
  <tr valign="BOTTOM">
    <th>&nbsp;</th>
    <th><font face="Times New Roman, Times, Serif" size="1"></font></th>
    <th><font face="Times New Roman, Times, Serif" size="1"></font></th>
    <th colspan="2" nowrap align="center"><b><font face="Times New Roman, Times, serif" size="1">Amount</font></b></th>
    <th nowrap align="center"><b><font face="Times New Roman, Times, serif" size="1"></font></b></th>
    <th colspan="2" nowrap align="center"><b><font face="Times New Roman, Times, serif" size="1">Basic
      EPS </font></b></th>
    <th nowrap align="center"><b><font face="Times New Roman, Times, serif" size="1"></font></b></th>
    <th colspan="2" nowrap align="center"><b><font face="Times New Roman, Times, serif" size="1">Diluted
      EPS </font></b></th>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td align="RIGHT">&nbsp; </td>
    <td align="RIGHT" colspan="2">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Reported
      net income</font></td>
    <td align="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align="left" nowrap><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT" nowrap><font face="Times New Roman, Times, Serif" size="2">
      204</font></td>
    <td align="LEFT" nowrap><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td align="left" nowrap><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT" nowrap><font face="Times New Roman, Times, Serif" size="2">
      0.70</font></td>
    <td align="LEFT" nowrap><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td align="left" nowrap><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT" nowrap><font face="Times New Roman, Times, Serif" size="2">
      0.68</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;</td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Add back
      amortization expense (net of tax):</font></td>
    <td align="RIGHT">&nbsp;</td>
    <td align="RIGHT">&nbsp;</td>
    <td align="RIGHT">&nbsp;</td>
    <td align="LEFT">&nbsp;</td>
    <td align="RIGHT">&nbsp;</td>
    <td align="RIGHT">&nbsp;</td>
    <td align="LEFT">&nbsp;</td>
    <td align="RIGHT">&nbsp;</td>
    <td align="RIGHT">&nbsp;</td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;</td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;Goodwill</font></td>
    <td align="RIGHT">&nbsp;</td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">11</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">0.04</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">0.04</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td align="RIGHT">&nbsp; </td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;</td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Adjusted
      net income</font></td>
    <td align="RIGHT">&nbsp;</td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 215</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 0.74</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 0.72</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td align="RIGHT">&nbsp;</td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
  </tr>
</table>

<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The changes in the carrying
amount of goodwill on a quarter-to-date and year-to-date basis in 2002 are as
follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>


<table cellpadding="0" cellspacing="0" border="0" width="600">
  <tr valign="BOTTOM">
    <th>&nbsp;</th>
    <th><font face="Times New Roman, Times, Serif" size="1"></font></th>
    <th>&nbsp;</th>
    <th colspan="2" nowrap><b><font face="Times New Roman, Times, serif" size="1">United
      States</font></b></th>
    <th nowrap><b><font face="Times New Roman, Times, serif" size="1"></font></b></th>
    <th colspan="2" nowrap><b><font face="Times New Roman, Times, serif" size="1">International</font></b></th>
    <th nowrap><b><font face="Times New Roman, Times, serif" size="1"></font></b></th>
    <th colspan="2" nowrap><b><font face="Times New Roman, Times, serif" size="1">Worldwide</font></b></th>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="100%" align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Balance
      as of March 24, 2002</font></td>
    <td align="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 165</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 126</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 291</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;</td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Acquisitions,
      disposals and other, net</font></td>
    <td align="LEFT">&nbsp;</td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">4</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">3</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">7</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;</td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Balance
      as of June 15, 2002</font></td>
    <td align="LEFT">&nbsp;</td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 169</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 129</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 298</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
  </tr>
</table>
<BR>


<table cellpadding="0" cellspacing="0" border="0" width="600">
  <tr valign="BOTTOM">
    <th>&nbsp;</th>
    <th><font face="Times New Roman, Times, Serif" size="1"></font></th>
    <th>&nbsp;</th>
    <td colspan="2" nowrap align="center"><font face="Times New Roman, Times, Serif" size="1"><b><font face="Times New Roman, Times, serif" size="1">United
      States</font></b></font></td>
    <td nowrap align="center">&nbsp;</td>
    <td colspan="2" nowrap align="center"><font face="Times New Roman, Times, Serif" size="1"><b><font face="Times New Roman, Times, serif" size="1">International</font></b></font></td>
    <td nowrap align="center">&nbsp;</td>
    <td colspan="2" nowrap align="center"><font face="Times New Roman, Times, Serif" size="1"><b><font face="Times New Roman, Times, serif" size="1">Worldwide</font></b></font></td>
    <th>&nbsp;</th>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="100%" align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Balance
      as of December 29, 2001</font></td>
    <td align="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 21</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 38</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 59</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;</td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Reclassification
      of reacquired franchise rights(a)</font></td>
    <td align="LEFT">&nbsp;</td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">145</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">96</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">241</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;</td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Acquisitions,
      disposals and other, net</font></td>
    <td align="LEFT">&nbsp;</td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">3</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(5</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2">(2</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">)</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="1">
    </td>
    <td></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;</td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">Balance
      as of June 15, 2002</font></td>
    <td align="LEFT">&nbsp;</td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 169</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 129</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
    <td align="left"><font face="Times New Roman, Times, Serif" size="2">$</font></td>
    <td align="RIGHT"><font face="Times New Roman, Times, Serif" size="2"> 298</font></td>
    <td align="LEFT"><font face="Times New Roman, Times, Serif" size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
    <td colspan="2" align="RIGHT">
      <hr NOSHADE color="Black" size="2">
    </td>
    <td></td>
  </tr>
</table>
<BR>

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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>These
balances are reported net of deferred tax liabilities of $27 million for the U.S. and $26
million for International. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>8</FONT></P>

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</TR>
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<BR>





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<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indefinite-lived intangible assets
as of June 15, 2002 totaled $31 million and consisted of acquired trademarks. Amortizable
intangible assets at June 15, 2002 totaled $74 million, net of accumulated amortization
of $74 million, and consisted primarily of franchise contract rights. Amortization
expense for the 12 and 24 weeks ended June 15, 2002 was approximately $1 million and $2
million, respectively. On an annual basis, amortization expense will approximate $4
million for each of the next five years. This amount excludes amortization of any
intangibles that might be established in connection with the acquisition of YGR. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Impairment or Disposal
of Long-Lived Assets</U></FONT></FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effective December 30, 2001, the
Company adopted SFAS No. 144, &#147;Accounting for the Impairment or Disposal of Long-Lived
Assets&#148; (&#147;SFAS 144&#148;). SFAS 144 retained many of the fundamental provisions of SFAS No.
121, &#147;Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be
Disposed Of&#148; (&#147;SFAS 121&#148;), but resolved certain implementation issues associated with
that Statement. The adoption of SFAS 144 did not have a material impact on the Company&#146;s
consolidated results of operations. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SFAS 144 also requires the results
of operations of a component entity that is classified as held for sale or has been
disposed of be reported as discontinued operations in the Condensed Consolidated
Statements of Income if certain conditions are met. These conditions include elimination
of the operations and cash flows of the component entity from the ongoing operations of
the Company and no significant continuing involvement by the Company in the operations of
the component entity after the disposal transaction. The results of operations of stores
meeting both these conditions that were disposed of in the 12 and 24 weeks ended June 15,
2002 or classified as held for sale at June 15, 2002 were not material for the 12 and 24
weeks ended June 15, 2002 or June 16, 2001. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>4.&nbsp;&nbsp;New Accounting
Pronouncement Not Yet Adopted</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In August 2001, the FASB issued SFAS
No. 143, &#147;Accounting for Asset Retirement Obligations&#148; (&#147;SFAS 143&#148;), which will be
effective for the Company beginning fiscal year 2003. SFAS 143 addresses the financial
accounting and reporting for obligations associated with the retirement of tangible
long-lived assets and the associated asset retirement costs. We have not yet determined
the impact of adopting SFAS 143 on the Company&#146;s Financial Statements. </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>5.&nbsp;&nbsp;Two-for-One Common
Stock Split</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 7, 2002, the Company
announced that its Board of Directors approved a two-for-one split of the Company&#146;s
outstanding shares of common stock. The stock split was effected in the form of a stock
dividend and entitled each shareholder of record at the close of business on June 6, 2002
to receive one share for every outstanding share of common stock held on the record date.
The stock dividend was distributed on June 17, 2002, with approximately 149 million
shares of common stock distributed. All per share and share amounts in the accompanying
Financial Statements and Notes to the Financial Statements have been adjusted to reflect
the stock split. </FONT></P>
<BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>9 </FONT></P>

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<TD><HR SIZE=5 NOSHADE>
<BR>


<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>6.&nbsp;&nbsp;Earnings Per Common
Share (&#147;EPS&#148;)</FONT></H2>
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</TD>
</TR>
</TABLE>
<BR>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="54%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Net income</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;140</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;116</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;264</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;204</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Basic EPS</U></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Weighted-average common shares outstanding</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">297</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">294</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">296</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">294</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Basic EPS</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;0.47</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;0.40</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;0.89</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;0.70</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Diluted EPS</U></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Weighted-average common shares outstanding</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">297</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">294</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">296</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">294</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Shares assumed issued on exercise of dilutive share</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;equivalents</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">57</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">54</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">59</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">54</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Shares assumed purchased with proceeds of dilutive share</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;equivalents</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(40</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(44</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(43</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(45</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Shares applicable to diluted earnings</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">314</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">304</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">312</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">303</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Diluted EPS</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;0.45</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;0.38</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;0.85</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;0.68</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>


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<TD>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unexercised employee stock
options to purchase approximately 0.8 million shares of our Common Stock for
both the 12 and 24 weeks ended June 15, 2002, were not included in the
computation of diluted EPS because their exercise prices were greater than the
average market price of our Common Stock during the 12 and 24 weeks ended June
15, 2002. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unexercised employee stock
options to purchase approximately 6.5 million and 7.4 million shares of our
Common Stock for the 12 and 24 weeks ended June 16, 2001, respectively, were not
included in the computation of diluted EPS because their exercise prices were
greater than the average market price for our Common Stock during the 12 and 24
weeks ended June 16, 2001. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During the 24 weeks ended
June 15, 2002, we granted employee stock options to purchase approximately 6.4
million shares of our Common Stock at an exercise price equal to the average
market price on the date of grant. The weighted-average exercise price of these
options was approximately $25 per share. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>7.
&nbsp;&nbsp;Comprehensive Income</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Comprehensive income was as follows: </FONT></P>
<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="54%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Net income</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;140</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;116</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;264</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;204</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Foreign currency translation adjustment arising</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;during the period</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(14</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Reclassification of foreign currency translation</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;adjustment</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Changes in fair value of derivatives</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(14</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Reclassification of derivative gains to net income</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Total comprehensive income</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;144</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;100</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;257</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;202</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>


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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>10 </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>8.&nbsp;&nbsp;Items
Affecting Comparability of Net Income</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Facility Actions Net
Loss (Gain)</U></FONT></FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Facility actions net loss
(gain) consists of the following three components: </FONT></P>
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<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Refranchising (gains) losses; </FONT></TD>
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<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Store closure costs; and </FONT></TD>
</TR>
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<BR>

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<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Impairment
of long-lived assets for restaurants we intend to continue to use in the business and
restaurants we intend to close.  </FONT></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table
summarizes the impact of facility actions net loss (gain): </FONT></P>
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</TR>
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<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended 6/15/02</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">U.S.</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">International</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Worldwide</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="54%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Refranchising net (gains) losses (a)</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(3</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&#151;</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(3</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Store closure costs</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Store impairment charges</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Facility actions net loss (gain)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;10</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended 6/16/01</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">U.S.</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">International</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Worldwide</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="54%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Refranchising net (gains) losses (a)</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(29</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(2</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(31</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Store closure costs</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Store impairment charges</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Facility actions net loss (gain)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(24</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(18</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended 6/15/02</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">U.S.</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">International</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Worldwide</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="54%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Refranchising net (gains) losses (a)</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(4</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(2</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(6</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Store closure costs</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">13</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Store impairment charges</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">12</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Facility actions net loss (gain)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;13</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;19</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended 6/16/01</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">U.S.</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">International</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Worldwide</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="54%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Refranchising net (gains) losses (a)</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(29</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(6</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(35</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Store closure costs</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Store impairment charges</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">13</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Facility actions net loss (gain)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(16</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(16</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
initial franchise fees of less than $1 million and $1 million for the 12 weeks ended June
15, 2002 and June 16, 2001, respectively, and $1 million and $3 million for the 24 weeks
ended June 15, 2002 and June 16, 2001, respectively. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table summarizes the
carrying values of the major classes of assets held for sale at June 15, 2002 and
December 29, 2001. The carrying values of liabilities held for sale at June 15, 2002 and
December 29,</FONT></P>
<BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>11 </FONT></P>

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</TD>
</TR>
</TABLE>
<BR>





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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
2001 were not significant. The carrying values in International relate
primarily to our Singapore business. U.S.<BR>amounts primarily represent land on which we
previously operated restaurants. Subsequent to the end of the<BR>quarter we sold the
Singapore business at a price approximately equal to its carrying value.</FONT></P></TD></TR></TABLE>
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>
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</TD>
</TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">June 15, 2002</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">U.S.</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">International</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Worldwide</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="54%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Property, plant and equipment, net</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$8</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$32</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$40</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Other assets</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;Assets classified as held for sale</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$36</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$44</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">December 29, 2001</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">U.S.</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">International</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Worldwide</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="54%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Property, plant and equipment, net</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$8</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$32</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$40</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Other assets</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;Assets classified as held for sale</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$36</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$44</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table summarizes
Company sales and restaurant profit related to stores held for sale at June 15, 2002 or
disposed of through refranchising or closure during 2002 and 2001. As discussed in Note
3, the operations of such stores classified as held for sale as of June 15, 2002 or
disposed of in the 12 and 24 weeks ended June 15, 2002 which meet the conditions of SFAS
144 for reporting as discontinued operations were not material. Restaurant profit
represents Company sales less the cost of food and paper, payroll and employee benefits
and occupancy and other operating expenses. </FONT></P>
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</TD>
</TR>
</TABLE>
<BR>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="46%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Stores held for sale at June 15, 2002:</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Sales</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$25</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$32</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$42</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;52</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Restaurant profit</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Stores disposed of in 2002 and 2001:</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Sales</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$61</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$17</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$137</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Restaurant profit</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">13</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Unusual Items</U></FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unusual items income of $9
million and $20 million for the second quarter and year-to-date of 2002 was
primarily comprised of recoveries related to the AmeriServe bankruptcy
reorganization process. See Note 14 for a discussion of the AmeriServe
bankruptcy reorganization process. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unusual items income of $4
million and $2 million for the second quarter and year-to-date of 2001 primarily
included settlement of certain wage and hour litigation for amounts less than
previously estimated, net of costs to defend this litigation. </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>9.&nbsp;&nbsp;Debt</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At June 15, 2002, our
primary bank credit agreement, as amended, was comprised of a senior unsecured
Term Loan Facility and a $1.75 billion senior unsecured Revolving Credit
Facility (collectively referred to as the &#147;Existing Credit
Facilities&#148;). The Existing Credit Facilities were scheduled to mature on
October 2, 2002. </FONT></P>
<BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>12 </FONT></P>

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</TD>
</TR>
</TABLE>
<BR>





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<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At June 15, 2002, we had
unused Revolving Credit Facilities aggregating $1.3 billion, net of outstanding
letters of credit of $0.2 billion. Interest on amounts borrowed was payable at
least quarterly at variable rates, based principally on the London Interbank
Offered Rate (&#147;LIBOR&#148;) plus a variable margin factor. At June 15,
2002, the weighted average interest rate on the Existing Credit Facilities was
2.95%, which included the effects of associated interest rate swaps. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Existing Credit
Facilities were amended on February 22, 2002. This amendment provided for, among
other things, additional flexibility with respect to acquisitions and other
investments. In addition, we voluntarily reduced our maximum borrowings under
the Revolving Credit Facility from $3.0 billion to $1.75 billion. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On June 25, 2002, we closed
on a new $1.4 billion senior unsecured Revolving Credit Facility (the &#147;New
Credit Facility&#148;) which replaces the Existing Credit Facilities. The New
Credit Facility matures on June 25, 2005. We used the initial borrowings under
the New Credit Facility to repay the indebtedness under the Existing Credit
Facilities. Accordingly, we have classified amounts due under the Existing
Credit Facilities as long-term debt in our Condensed Consolidated Balance Sheet
as of June 15, 2002. The interest rate for borrowings under the New Credit
Facility will range from 1.00% to 2.00% over LIBOR or 0.00% to 0.65% over an
Alternate Base Rate, which is the greater of the Prime Rate or the Federal Funds
Effective Rate plus 1%. The exact spread over LIBOR or the Alternate Base Rate,
as applicable, will depend upon our performance under specified financial
criteria. Interest is payable at least quarterly. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The New Credit Facility is
unconditionally guaranteed by our principal domestic subsidiaries and contains
other terms and provisions (including representations, warranties, covenants,
conditions and events of default) similar to those set forth in the Existing
Credit Facilities. Specifically, the New Credit Facility contains financial
covenants, relating to maintenance of leverage and fixed charge coverage ratios.
Likewise, the New Credit Facility contains affirmative and negative covenants
including, among other things, limitations on certain additional indebtedness,
guarantees of indebtedness, cash dividends, aggregate non-U.S. investment and
certain other transactions. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As discussed in Note 2, we
assumed approximately $160 million in future rent obligations upon the
acquisition of YGR related to certain sale-leaseback agreements entered into by
YGR prior to 2001 involving approximately 350 LJS units. As a result of liens
held by the buyer/lessor on certain personal property within the units, the
agreements have been accounted for as financings and are reflected as debt in
our Financial Statements. Rental payments made under these agreements will be
made on a monthly basis through 2019 with an effective interest rate of
approximately 11%. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The annual maturities of long-term
debt as of June 15, 2002, excluding capital lease obligations of $80 million and
a $37 million fair value adjustment included in long-term debt as a result of accounting
for interest rate swaps, are as follows: </FONT></P>
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</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="300">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Period ended<BR>&nbsp;&nbsp;&nbsp;&nbsp;June 15: </FONT><HR WIDTH=30% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="52%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2003</FONT></TD>
     <TD WIDTH="15%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="31%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2004</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2005</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">352</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2006</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">845</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2007</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Thereafter</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,050</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Total</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$2,255</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Subsequent to June 15,
2002, we capitalized debt costs of approximately $8 million related to the New
Credit Facility. These costs will be amortized into interest expense over the
life of the New Credit Facility. </FONT></P>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>13 </FONT></P>

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</TD>
</TR>
</TABLE>
<BR>





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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On June 25, 2002, we also
issued $400 million of 7.70% Senior Unsecured Notes due July 1, 2012 (referred
to as the &#147;Notes&#148;) under a shelf registration statement previously
filed with the Securities and Exchange Commission which is more fully discussed
in the 2001 Form 10-K. The net proceeds from the issuance of the Notes of
approximately $391 million were used to repay indebtedness under the New Credit
Facility. Interest is payable January 1 and July 1 of each year, commencing on
January 1, 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest expense on
short-term borrowings and long-term debt was $35 million and $42 million for the
12 weeks ended June 15, 2002 and June 16, 2001, respectively, and $70 million
and $84 million for the 24 weeks ended June 15, 2002 and June 16, 2001,
respectively. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>10.&nbsp;&nbsp;Reportable
Operating Segments</FONT></H2>
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</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="8"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Revenues  </FONT><HR WIDTH=95% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended  </FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended </FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="41%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">United States</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1,200</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1,124</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$2,334</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$2,194</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">International</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">567</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">481</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,047</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">917</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1,767</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1,605</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$3,381</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$3,111</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="8"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating Profit; Interest Expense, Net;<BR>and Income Before Income Taxes  </FONT><HR WIDTH=95% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended  </FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended </FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="41%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">United States</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;199</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;172</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;374</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;312</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">International</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">86</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">58</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">168</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">132</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Unallocated and corporate expenses</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(43</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(36</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(76</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(69</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Foreign exchange net (loss)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Facility actions net (loss) gain</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(10</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">18</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(19</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Unusual items income</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Total operating profit</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">241</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">215</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">467</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">391</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Interest expense, net</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(33</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(37</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(67</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(76</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Income before income taxes</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;208</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;178</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;400</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;315</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH=600>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Identifiable Assets</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12/29/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="41%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">United States</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$3,096</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$2,489</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">International</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,637</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,593</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Corporate(a)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">340</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">306</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
   <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$5,073</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$4,388</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
   <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

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<TD>


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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>14 </FONT></P>

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</TD>
</TR>
</TABLE>
<BR>





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<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
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</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Long-Lived Assets(b)</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12/29/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="41%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">United States</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$2,233</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$2,203</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
    <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">International</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,011</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">987</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Corporate</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">23</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">45</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$3,267</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$3,235</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Primarily includes deferred tax assets, Property, Plant and Equipment, net,
(principally related to our office facilities) and fair value of derivative
instruments. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Includes Property, Plant and Equipment, net; Goodwill, net; and Intangible
Assets, net. Also includes<br>$40 million of Assets Classified as Held for Sale at
June 15, 2002 and December 29, 2001. Excludes long-lived assets that will be
recorded upon completion of the allocation of the purchase price in connection
with the YGR acquisition as discussed in Note 2. </FONT></TD>
</TR>
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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>11.&nbsp;&nbsp; Share
Repurchase Program</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In February 2001, our Board
of Directors authorized a share repurchase program. This program authorizes us
to repurchase, through February 14, 2003, up to $300 million (excluding
applicable transaction fees) of our outstanding Common Stock. During the 24
weeks ended June 15, 2002, we repurchased approximately 2.2 million shares for
approximately $68 million at an average price per share of approximately $31.
During the 24 weeks ended June 16, 2001, we repurchased approximately 1.1
million shares for approximately $21 million at an average share price of
approximately $19. Based on market conditions and other factors, additional
repurchases may be made from time to time in the open market or through
privately negotiated transactions, at the discretion of the Company. </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>12.
&nbsp;&nbsp;Supplemental Cash Flow Data</FONT></H2>
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<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="72%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Cash Paid for:</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Interest</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;67</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$78</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Income taxes</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">66</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">40</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Significant Non-Cash Investing and Financing Activities:</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Assumption of debt and capital leases related to the acquisition of YGR</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$219</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Contribution of non-cash net assets to an unconsolidated affiliate</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">21</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Capital lease obligations incurred to acquire assets</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Assumption of liabilities in connection with an acquisition</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">36</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Fair market value of assets received in connection with a non-cash</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;acquisition</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>13. Commitments
and Contingencies</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Contingent
Liabilities</U></FONT></FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We were directly or indirectly
contingently liable in the amounts of $364 million and $353 million at June 15,
2002 and December 29, 2001, respectively, for certain lease assignments and
guarantees. At June 15, 2002, $289 million represented contingent liabilities to
lessors arising from assigning our interest in and obligations under real estate
leases as a condition to the refranchising of certain Company restaurants,
contributing certain Company restaurants to unconsolidated affiliates and
guaranteeing certain other leases. The $289 million</FONT></P>
<BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>15 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>represented the present
value of the minimum payments of the assigned leases, excluding any renewal
option periods, discounted at our pre-tax cost of debt. On a nominal basis, the
contingent liability resulting from the assigned leases is $418 million.</FONT></P>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The contingent liabilities
also include guarantees of approximately $32.4 million to support financial
arrangements of certain franchisees, including partial guarantees of franchisee
loan pools related primarily to the Company&#146;s refranchising programs. The
total loans outstanding under these loan pools were approximately $163 million
at June 15, 2002. In support of these guarantees, we have posted $32.4 million
of letters of credit. We also provide a standby letter of credit under which we
could potentially be required to fund a portion (up to $25 million) of one of
the franchisee loan pools. Any funding under the guarantees or letters of credit
would be secured by franchisee loan collateral. We believe that we have
appropriately provided for our estimated probable exposures under these
contingent liabilities. These provisions were primarily charged to refranchising
(gains) losses. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The remaining contingent
liabilities of $43 million represent the outstanding balance of financial
arrangements of certain unconsolidated affiliates and third parties for which we
have provided guarantees. These financial arrangements primarily include lines
of credit, loans and letters of credit. If all lines of credit and letters of
credit were fully drawn down, the maximum contingent liability under these
arrangements would be approximately $68 million as of June 15, 2002. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Insurance
Programs</U></FONT></FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We are currently
self-insured for a portion of our current and prior years&#146; losses related
to workers&#146; compensation, general liability and automobile liability
insurance programs (collectively, &#147;casualty losses&#148;) as well as
property losses and certain other insurable risks. To mitigate the cost of our
exposures for certain property and casualty losses, we make annual decisions to
either retain the risks of loss up to certain maximum per occurrence or
aggregate loss limits negotiated with our insurance carriers or to fully insure
those risks. Since the October 6, 1997 Spin-off from PepsiCo, Inc.
(&#147;PepsiCo&#148;) (the &#147;Spin-off&#148;), we have elected to retain the
risks subject to certain insured limitations. Since August 1999, we have bundled
our risks for casualty losses, property losses and various other insurable risks
into one pool with a single self-insured retention and have purchased
reinsurance coverage up to a specified limit that is significantly above our
actuarially determined probable losses. We are self-insured for losses in excess
of the reinsurance limit. We believe the likelihood of losses exceeding the
reinsurance limit is remote. We are also self-insured for healthcare claims for
eligible participating employees subject to certain deductibles and limitations.
We have accounted for our retained liabilities for property and casualty losses
and healthcare claims, including reported and incurred but not reported claims,
based on information provided by our independent actuaries. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Due to the inherent
volatility of our actuarially determined property and casualty loss estimates,
it is reasonably possible that we could experience changes in estimated losses
which could be material to our growth in quarterly and annual net income. We
believe that we have recorded our reserves for property and casualty losses at a
level which has substantially mitigated the potential negative impact of adverse
developments and/or volatility. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Change of
Control Severance Agreements</U></FONT></FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In September 2000, the
Compensation Committee of the Board of Directors approved renewing severance
agreements with certain key executives (the &#147;Agreements&#148;). These
Agreements are triggered by a termination, under certain conditions, of the
executive&#146;s employment following a change in control of the Company, as
defined in the Agreements. If triggered, the affected executives would generally
receive twice the amount of both their annual base salary and their annual
incentive in a lump sum, outplacement services and a tax gross-up for any excise
taxes. These Agreements have a three-year term and automatically renew each
January 1 for another three-year term unless the Company elects not to renew the
Agreements. Since the timing of any </FONT></P>
<BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>16 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>payments under these
Agreements cannot be anticipated, the amounts are not estimable. However, these
payments, if made, could be substantial. In the event of a change of control,
rabbi trusts would be established and used to provide payouts under existing
deferred and incentive compensation plans.</FONT></P>
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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Litigation
</U></FONT></FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On August 29, 1997, a class
action lawsuit against Taco Bell Corp., entitled <U>Bravo, et al. v. Taco Bell
Corp.</U> (&#147;Bravo&#148;), was filed in the Circuit Court of the State of Oregon
of the County of Multnomah. The lawsuit was filed by two former Taco Bell shift
managers purporting to represent approximately 17,000 current and former hourly
employees statewide. The lawsuit alleges violations of state wage and hour laws,
principally involving unpaid wages including overtime, and rest and meal period
violations, and seeks an unspecified amount in damages. Under Oregon class
action procedures, Taco Bell was allowed an opportunity to &#147;cure&#148; the
unpaid wage and hour allegations by opening a claims process to all putative
class members prior to certification of the class. In this cure process, Taco
Bell has paid out less than $1 million. On January 26, 1999, the Court certified
a class of all current and former shift managers and crew members who claim one
or more of the alleged violations. A trial date of November 2, 1999 was set.
However, on November 1, 1999, the Court issued a proposed order postponing the
trial and establishing a pre-trial claims process. The final order regarding the
claims process was entered on January 14, 2000. Taco Bell moved for
certification of an immediate appeal of the Court-ordered claims process and
requested a stay of the proceedings. This motion was denied on February 8, 2000.
Taco Bell appealed this decision to the Supreme Court of Oregon and the Court
denied Taco Bell&#146;s Writ of Mandamus on March 21, 2000. A Court-approved
notice and claim form was mailed to approximately 14,500 class members on
January 31, 2000. The Court ordered pre-trial claims process went forward, and
hearings to determine potential damages were held for claimants employed or
previously employed in four selected Taco Bell units. After the initial hearings
relating to these four units, the damage claims hearings were discontinued.
Trial began on January 4, 2001. On March 9, 2001, the jury reached verdicts on
the substantive issues in this matter. A number of these verdicts were in favor
of the Taco Bell position; however, certain issues were decided in favor of the
plaintiffs. The Court reduced the number of potential claimants to 1,100. In
April 2002, a jury trial to determine the damages of 93 of those claimants found
that Taco Bell failed to pay for certain meal breaks and/or off-the-clock work
for 86 of the 93 claimants. However, the total amount of hours awarded by the
jury was substantially less than that sought by the claimants. Nonetheless, Taco
Bell intends to appeal this jury verdict, as well as the verdict in the related
liability trial held in 2001. The Court has not yet determined the dollar amount
of the jury award, or whether the Court will allow an interlocutory appeal at
this point or proceed with one or more additional damages trials for the
remaining claimants. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have provided for the
estimated costs of the Bravo litigation, based on a projection of eligible
claims (including claims filed to date, where applicable), the cost of each
eligible claim, including the estimated legal fees incurred by plaintiffs, and
the results of settlement negotiations in this and other wage and hour
litigation matters. Although the outcome of this case cannot be determined at
this time, we believe the ultimate cost of this case in excess of the amounts
already provided will not be material to our annual results of operations,
financial condition or cash flows. Any provisions have been recorded as unusual
items. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">On January 16, 1998, a
lawsuit against Taco Bell Corp., entitled <U>Wrench LLC, Joseph Shields and Thomas
Rinks v. Taco Bell Corp.</U> (&#147;Wrench&#148;) was filed in the United States
District Court for the Western District of Michigan. The lawsuit alleges that
Taco Bell Corp. misappropriated certain ideas and concepts used in its
advertising featuring a Chihuahua. Plaintiffs seek to recover damages under
several theories, including breach of implied-in-fact contract, idea
misappropriation, conversion and unfair competition. On June 10, 1999, the
District Court granted summary judgment in favor of Taco Bell Corp. Plaintiffs
filed an appeal with the U.S. Court of Appeals for the Sixth Circuit (the
&#147;Court of Appeals&#148;), and oral arguments were held on September 20,
2000. On July 6, 2001, the Court of Appeals reversed the District Court&#146;s
judgment in favor of Taco Bell Corp. and remanded the case to the District
Court. Taco Bell Corp. unsuccessfully petitioned the Court of Appeals for
rehearing en banc, and its petition for writ of certiorari to the United States
Supreme Court was </FONT></FONT> </P>
<BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>17 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>denied on January 21, 2002.
The case has now officially been returned to the District Court, where the
Wrench plaintiffs will be allowed to bring their claims to trial. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We believe that the Wrench
plaintiffs&#146; claims are without merit and are vigorously defending the case.
However, in view of the inherent uncertainties of litigation, the outcome of the
case cannot be predicted at this time. Likewise, the amount of any potential
loss cannot be reasonably estimated. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Obligations to PepsiCo,
Inc. After Spin-off</U></FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In connection with the
Spin-off, we entered into separation and other related agreements (the
&#147;Separation Agreements&#148;) governing the Spin-off transaction and our
subsequent relationship with PepsiCo. These agreements provide certain
indemnities to PepsiCo. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Separation Agreements
provided for, among other things, our assumption of all liabilities relating to
the restaurant businesses, including California Pizza Kitchen, Chevys Mexican
Restaurant, D&#146;Angelo&#146;s Sandwich Shops, East Side Mario&#146;s and Hot
&#146;n Now (collectively the &#147;Non-core Businesses&#148;), and our
indemnification of PepsiCo with respect to these liabilities. We have included
our best estimates of these liabilities in the accompanying Financial
Statements. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In addition, we have
indemnified PepsiCo for any costs or losses it incurs with respect to all
letters of credit, guarantees and contingent liabilities relating to our
businesses under which PepsiCo remains liable. As of June 15, 2002, PepsiCo
remains liable for approximately $85 million on a nominal basis related to these
contingencies. This obligation ends at the time PepsiCo is released, terminated
or replaced by a qualified letter of credit. We have not been required to make
any payments under this indemnity. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Under the Separation
Agreements, PepsiCo maintains full control and absolute discretion with regard
to any combined or consolidated tax filings for periods through October 6, 1997.
PepsiCo also maintains full control and absolute discretion regarding any common
tax audit issues. Although PepsiCo has contractually agreed to, in good faith,
use its best efforts to settle all joint interests in any common audit issue on
a basis consistent with prior practice, there can be no assurance that
determinations made by PepsiCo would be the same as we would reach, acting on
our own behalf. Through June 15, 2002, there have not been any determinations
made by PepsiCo where we would have reached a different determination. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We also agreed to certain
restrictions on our actions to help ensure that the Spin-off maintained its
tax-free status. These restrictions, which were generally applicable to the
two-year period following October 6, 1997, included among other things,
limitations on any liquidation, merger or consolidation with another company,
certain issuances and redemptions of our Common Stock, our granting of stock
options and our sale, refranchising, distribution or other disposition of
assets. If we failed to abide by these restrictions or to obtain waivers from
PepsiCo and, as a result, the Spin-off fails to qualify as a tax-free
reorganization, we may be obligated to indemnify PepsiCo for any resulting tax
liability, which could be substantial. No payments under these indemnities have
been required or are expected to be required. Additionally, PepsiCo is entitled
to the federal income tax benefits related to the exercise after the Spin-off of
vested PepsiCo options held by our employees. We expense the payroll taxes
related to the exercise of these options as incurred. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>14.&nbsp;&nbsp;AmeriServe
Bankruptcy Reorganization Process</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AmeriServe Food
Distribution Inc. (&#147;AmeriServe&#148;) was the principal distributor of food
and paper supplies to our stores when it filed for protection under Chapter 11
of the U.S. Bankruptcy Code on January 31, 2000. A plan of reorganization for
AmeriServe (the &#147;POR&#148;) was approved on November 28, 2000, which
resulted in, among other things, the assumption of our distribution agreement,
subject to certain amendments, by McLane Company, Inc. </FONT></P>
<BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>18 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During the AmeriServe
bankruptcy reorganization process, we took a number of actions to ensure
continued supply to our system. Those actions resulted in a cumulative net
unusual items expense of $149 million through December 29, 2001, which was
principally recorded in the year ended December 30, 2000. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Under the POR we are
entitled to the proceeds from certain residual assets and preference claims of
the estate which are generally recorded as unusual items income when they are
realized. For the 12 and 24 weeks ended June 15, 2002, we recorded an additional
$12 million and $24 million of net recoveries under the POR as unusual items
income. </FONT></P>


<BR><BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>19 </FONT></P>

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<A NAME="management"></A>
<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Management&#146;s
Discussion and Analysis of <BR>Financial Condition and Results of Operations</FONT></H2>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Introduction</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May, 16 2002, Tricon Global
Restaurants, Inc. changed its name to YUM! Brands, Inc. in order to better reflect our
expanding portfolio of brands. In addition, on the same day Tricon Restaurants
International changed its name to YUM! Restaurants International. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>YUM! Brands, Inc. and
Subsidiaries (collectively referred to as &#147;YUM,&#148; or the
&#147;Company&#148;) is comprised of the worldwide operations of A&amp;W All
American-Food Restaurants (&#147;A&amp;W&#148;), KFC, Long John Silver&#146;s
(&#147;LJS&#148;), Pizza Hut and Taco Bell (the &#147;Concepts&#148;). LJS and
A&amp;W were added when we acquired Yorkshire Global Restaurants, Inc.
(&#147;YGR&#148;) on May 7, 2002. We are the world&#146;s largest quick service
restaurant (&#147;QSR&#148;) company based on the number of system units. The
following Management&#146;s Discussion and Analysis (&#147;MD&amp;A&#148;)
should be read in conjunction with the unaudited Condensed Consolidated
Financial Statements (&#147;Financial Statements&#148;), the Cautionary
Statements and our annual report on Form 10-K for the fiscal year ended December
29, 2001 (&#147;2001 Form 10-K&#148;). All Note references herein refer to the
accompanying notes to the Financial Statements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Throughout MD&amp;A, we
make reference to ongoing operating profit which represents operating profit
excluding the impact of facility actions net loss (gain) and unusual items
(income) expense. See Note 8 for a discussion of these exclusions. We use
ongoing operating profit as a key performance measure of our results of
operations for purposes of evaluating performance internally and as the base to
forecast future performance. Ongoing operating profit is not a measure defined
by accounting principles generally accepted in the United States of America and
should not be considered in isolation or as a substitute for measures of
performance in accordance with accounting principles generally accepted in the
United States of America. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All references to per share
and share amounts in the following MD&amp;A, unless otherwise noted, have been
adjusted to reflect the two-for-one common stock split distributed on June 17,
2002 to shareholders of record as of June 6, 2002. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>New Accounting
Pronouncement Not Yet Adopted</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>See Note 4. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Significant Known
Events, Trends or Uncertainties Expected to Impact 2002 Comparisons with 2001</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following factors
impacted comparability of operating performance for the quarter and year-to-date
ended June 15, 2002 to the quarter and year-to-date ended June 16, 2001 or could
impact comparisons for the remainder of 2002. Certain of these factors were
previously discussed in our 2001 Form 10-K. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Acquisition</U></FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 7, 2002, the Company
completed its acquisition of YGR, the parent company of LJS and A&amp;W. See
Note 2 for a discussion of the acquisition. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At the time the acquisition
was completed, YGR consisted of 742 and 496 LJS company and franchise units,
respectively, and 127 and 742 A&amp;W company and franchise units, respectively.
In addition, 133 multibranded LJS/A&amp;W restaurants were included in the LJS
unit totals. For the remainder of 2002 we expect the acquisition of YGR to
increase worldwide revenues by approximately 5% and ongoing operating profit by
approximately </FONT></P>
<BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>20 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
2%. Except as discussed in certain sections of MD&amp;A, the
impact of the acquisition on our results of operations in the quarter and
year-to-date was not significant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Unusual Items</U></FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We had unusual items income
of $9 million and $4 million in the second quarter of 2002 and 2001,
respectively, and unusual items income of $20 million and $2 million
year-to-date for 2002 and 2001, respectively. See Note 8 for a discussion of our
unusual items (income) expense. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Store
Portfolio Strategy</U></FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Since 1995, we have been
strategically reducing our share of total system units by selling Company
restaurants to existing and new franchisees where their expertise can generally
be leveraged to improve our overall operating performance, while retaining
Company ownership of key U.S. and International markets. This
portfolio-balancing activity reduces our reported revenues and restaurant
profits, increasing the importance of system sales as a key performance measure.
We substantially completed our U.S. refranchising program in 2001. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table
summarizes our refranchising activities: </FONT></P>
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</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Number of units refranchised</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">99</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">47</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">156</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Refranchising proceeds, pre-tax</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$48</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$24</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;62</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Refranchising gains (losses), pre-tax</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$31</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;35</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In addition to our
refranchising program, we have been closing restaurants over the past several
years. Restaurants closed include poor performing restaurants, restaurants that
are relocated to a new site within the same trade area or U.S. Pizza Hut
delivery units consolidated with a new or existing dine-in traditional store
within the same trade area. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table
summarizes Company store closure activities: </FONT></P>
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</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Number of units closed</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">48</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">40</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">85</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">101</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Store closure costs</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$13</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Impairment charges for stores to be closed</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR>
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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The impact on ongoing
operating profit arising from our refranchising and Company store closures is
the net of (a) the estimated reduction in Company sales, restaurant profit and
general and administrative expenses and (b) the estimated increase in franchise
fees from the stores refranchised. The amounts presented below reflect the
estimated impact from stores that were operated by us for all or some portion of
the comparable period in 2001 and are no longer operated by us as of June 15,
2002. </FONT></P>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>21 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>





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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table summarizes the
estimated impact on revenue of refranchising and Company store closures: </FONT></P>
<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended 6/15/02</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">U.S.</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">International</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Worldwide</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="54%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Reduced sales</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(56</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(9</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(65</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Increased franchise fees</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Reduction in total revenues</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(55</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(64</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended 6/15/02 </FONT><HR WIDTH=90% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">U.S.</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">International</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Worldwide</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="54%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Reduced sales</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(114</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(24</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(138</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Increased franchise fees</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Reduction in total revenues</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(112</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(23</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(135</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD>


<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table summarizes the
estimated impact on ongoing operating profit of refranchising and Company store closures: </FONT></P>
<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended 6/15/02 </FONT><HR WIDTH=90% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">U.S.</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">International</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Worldwide</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="54%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Decreased restaurant margin</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(5</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&#151;</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(5</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Increased franchise fees</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Decreased G&amp;A</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Decrease in ongoing operating profit</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended 6/15/02 </FONT><HR WIDTH=90% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">U.S.</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">International</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Worldwide</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="54%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Decreased restaurant margin</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(12</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(1</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(13</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Increased franchise fees</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Decreased G&amp;A</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Decrease in ongoing operating profit</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Franchisee Financial
Condition</U></FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Like others in the QSR industry,
from time to time, some of our franchise operators experience financial difficulties with
respect to their franchise operations. Since 2000, certain of our franchise operators,
principally in the Taco Bell system, have experienced varying degrees of financial
problems. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Depending upon the facts and
circumstances of each situation, and in the absence of an improvement in the franchisee&#146;s
business trends, there are a number of potential resolutions of these financial issues.
These include a sale of some or all of the operator&#146;s restaurants to us or a third party,
a restructuring of the operator&#146;s business and/or finances, or, in the more unusual
cases, bankruptcy of the operator. It is our practice to proactively work with
financially troubled franchise operators in an attempt to positively resolve their issues. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Through July 15, 2002,
restructurings have been completed for approximately 1,450 Taco Bell franchise
restaurants. In connection with these restructurings, Taco Bell has acquired 144
restaurants for approximately $73 million. In addition to these acquisitions, Taco Bell
has purchased 43 restaurants from franchisees for approximately $23 million and
simultaneously leased the restaurants back to these franchisees under long-term leases.
As part of the restructurings, Taco Bell has committed to fund approximately $30 million
of future franchise capital expenditures, principally through leasing arrangements. The
majority of these restructurings were completed in fiscal 2001. </FONT></P>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>22 </FONT></P>

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</TD>
</TR>
</TABLE>
<BR>





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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the fourth quarter of 2000, Taco
Bell also established a $15 million loan program to assist certain franchisees. All
fundings had been advanced by the end of the first quarter of 2001, and the resulting
notes receivable are primarily included in Other assets. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We believe that the general
improvement in business trends at Taco Bell has helped alleviate financial problems in
the Taco Bell franchise system which were due to past downturns in sales. Accordingly,
though we continue to monitor this situation, we expect future restructurings of
remaining Taco Bell franchise restaurants with financial issues to be less in number and
costs than in 2001. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company charged expenses of $1
million and $5 million in the second quarter of 2002 and 2001, respectively, and $2
million and $12 million year-to-date in 2002 and 2001, respectively, to ongoing operating
profit related to allowances for doubtful Taco Bell franchise and license fee
receivables. These costs are reported as franchise and license expenses. On an ongoing
basis, we assess our exposure from franchise-related risks, which include estimated
uncollectibility of franchise and license receivables, contingent lease liabilities,
guarantees to support certain third party financial arrangements of franchisees and
potential claims by franchisees. The contingent lease liabilities and guarantees are more
fully discussed in the Contingent Liabilities section of Note 13. Although the ultimate
impact of these franchise financial issues cannot be predicted with certainty at this
time, we have provided for our current estimate of the probable exposure as of June 15,
2002. It is reasonably possible that there will be additional costs; however, these costs
are not expected to be material to quarterly or annual results of operations, financial
condition or cash flows. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>AmeriServe Bankruptcy
Reorganization Process</U></FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>See Note 14 and our 2001 Form 10-K
for a discussion of the impact of the AmeriServe Food Distribution, Inc. (&#147;AmeriServe&#148;)
bankruptcy reorganization process on the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Worldwide Results of
Operations</FONT></H2>
<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">% B(W)</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">% B(W)</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="40%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">System sales(a)</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;5,458</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$5,114</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;10,701</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$10,093</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Revenues</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Company sales</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;1,571</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1,416</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;2,997</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;2,742</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Franchise and license fees</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">196</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">189</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">384</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">369</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Total revenues</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;1,767</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1,605</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;3,381</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;3,111</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Company restaurant margin</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;262</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;206</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">28</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;485</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;392</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">24</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;% of Company sales</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16.7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14.5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2.2 ppts</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">.</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16.2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14.3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.9 ppts</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">.</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Ongoing operating profit</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;242</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;193</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">26</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;466</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;373</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">25</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Facility actions net (loss) gain</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(10</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">18</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NM</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(19</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NM</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Unusual items income</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NM</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NM</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Operating profit</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">241</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">215</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">13</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">467</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">391</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Interest expense, net</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">33</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">37</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">67</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">76</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Income tax provision</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">68</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">62</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">136</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">111</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(23</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Net income</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;140</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;116</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">21</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;264</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;204</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">29</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Diluted earnings per share</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;0.45</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;0.38</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">17</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.85</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;0.68</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">25</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Represents
combined sales of Company, unconsolidated affiliate, franchise and license restaurants. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>23 </FONT></P>

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</TD>
</TR>
</TABLE>
<BR>





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<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Worldwide Restaurant
Unit Activity</FONT></H2>
<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Company</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Unconsolidated<BR>Affiliates </FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Franchisees</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Licensees</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Total</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="42%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Balance at December 29, 2001</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6,435</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,000</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">19,263</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,791</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30,489</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">New Builds</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">195</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">57</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">254</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">57</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">563</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Acquisitions(a)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">892</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">38</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,177</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,107</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Refranchising</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(47</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">55</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Closures</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(85</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(14</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(270</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(165</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(534</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Other</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Balance at June 15, 2002</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7,382</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,073</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20,479</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,683</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">32,617</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">% of Total</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">23%</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6%</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">63%</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8%</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100%</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
units existing at the date of the acquisition of YGR on May 7, 2002. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Worldwide System Sales</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>System sales increased $344 million
or 7% in the quarter and $608 million or 6% year-to-date, after a 1% unfavorable impact
from foreign currency translation in the quarter and year-to-date. Excluding the impact
of foreign currency translation and the favorable impact of the YGR acquisition, system
sales increased 6% in the quarter and year-to-date. The increases resulted from new unit
development and same store sales growth, partially offset by store closures. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Worldwide Revenues</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Company sales increased $155 million
or 11% in the quarter. The impact from foreign currency translation was not significant.
Excluding the favorable impact of the YGR acquisition, Company sales increased 8%. The
increase was primarily driven by new unit development and same store sales growth. The
increase was partially offset by store closures and refranchising. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Franchise and license fees increased
$7 million or 3% in the quarter, after a 1% unfavorable impact from foreign currency
translation. Excluding the unfavorable impact of foreign currency translation and the
favorable impact of the YGR acquisition, franchise and license fees increased 3%. The
increase was driven by new unit development and same store sales growth, partially offset
by store closures. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Company sales increased $255 million
or 9% year-to-date, after a 1% unfavorable impact from foreign currency translation.
Excluding the unfavorable impact of foreign currency translation and the favorable impact
of the YGR acquisition, Company sales increased 8%. The increase was driven by new unit
development, same store sales growth and acquisitions of restaurants from franchisees.
The increase was partially offset by store closures and refranchising. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Franchise and license fees increased
$15 million or 4% year-to-date, after a 1% unfavorable impact from foreign currency
translation. The increase was driven by same store sales growth and new unit development,
partially offset by store closures. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>24 </FONT></P>
<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>





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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Worldwide Company
Restaurant Margin</FONT></H2>
<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Company sales</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100.0</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100.0</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100.0</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100.0</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Food and paper</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30.7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">31.2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30.7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">31.1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Payroll and employee benefits</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">26.9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">27.6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">27.3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">27.7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Occupancy and other operating expenses</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">25.7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">26.7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">25.8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">26.9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Company restaurant margin</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16.7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14.5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16.2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14.3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Restaurant margin as a percentage of
sales increased approximately 220 basis points in the quarter, including the favorable
impact of approximately 50 basis points from the adoption of SFAS No. 142, &#147;Goodwill and
Other Intangible Assets&#148; (&#147;SFAS 142&#148;). U.S. restaurant margin increased approximately 140
basis points and International restaurant margin increased approximately 390 basis points. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Restaurant margin as a percentage of
sales increased approximately 190 basis points year-to-date, including the favorable
impact of approximately 50 basis points from the adoption of SFAS 142. U.S. restaurant
margin increased approximately 170 basis points and International restaurant margin
increased approximately 240 basis points. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Worldwide General and
Administrative Expenses</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Worldwide general and administrative
(&#147;G&amp;A&#148;) expenses increased $25 million or 12% in the quarter and $34 million or 9%
year-to-date. Excluding the unfavorable impact of the YGR acquisition, G&amp;A expenses
increased 10% in the quarter and 8% year-to-date. The increases were primarily driven by
higher compensation-related costs and increased spending on leadership conferences for
domestic restaurant general managers and International leadership teams. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Worldwide Franchise and
License Expenses</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Franchise and license expenses
decreased $8 million or 46% in the quarter and $15 million or 43% year-to-date. The
decreases were primarily attributable to lower provisions for doubtful franchise and
license fee receivables and lower franchise support costs, primarily at Taco Bell. In
addition, the decreases were also due to lapping a biennial International franchise
convention held in 2001. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Worldwide Other (Income)
Expense</FONT></H2>
<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">% B(W)</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">% B(W)</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="40%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Equity income</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(8</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(6</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">24</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(13</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(11</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Foreign exchange net (gain) loss</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NM</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NM</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR><TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Other (income) expense</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">60</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(13</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">43</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR></TABLE>
<BR>

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<TR VALIGN=TOP>
<TD>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Equity income increased $2 million
or 24% in the quarter and $2 million or 14% year-to-date. The increases were primarily
driven by the favorable impact from the adoption of SFAS 142. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Worldwide Facility
Actions Net Loss (Gain)</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We recorded facility actions net
loss of $10 million and $19 million for the 12 and 24 weeks ended June 15, 2002,
respectively, and facility actions net gain of $18 million and $16 million for the 12 and
24 weeks ended </FONT></P>
<BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>25 </FONT></P>

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</TD>
</TR>
</TABLE>
<BR>





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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
June 16, 2001, respectively. See the Store Portfolio Strategy section for
more detail of our refranchising and closure activities and Note 8 for a summary of
facility actions net loss (gain).</FONT></P>
<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Worldwide Ongoing
Operating Profit</FONT></H2>
<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">% B(W)</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">% B(W)</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="40%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">United States</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;199</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;172</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;374</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;312</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">International</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">86</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">58</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">47</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">168</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">132</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">27</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Foreign exchange net gain (loss)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NM</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NM</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Unallocated and corporate expenses</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(43</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(36</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(17</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(76</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(69</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Ongoing operating profit</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;242</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;193</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">26</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;466</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;373</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">25</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Quarter and year-to-date U.S. and
International ongoing operating profit are discussed in the respective sections. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unallocated and corporate expenses
increased $7 million or 17% in the quarter and $7 million or 9% year-to-date. The
increases were primarily due to higher compensation-related costs. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Worldwide Interest
Expense, Net</FONT></H2>
<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">% B(W)</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">% B(W)</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="40%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Interest expense</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;35</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;42</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;70</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;84</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Interest income</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(73</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(63</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Interest expense, net</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;33</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;37</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;67</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;76</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net interest expense decreased $4
million or 8% in the quarter and $9 million or 11% year-to-date. The decreases in our net
interest expense in the quarter and year-to-date were primarily due to a decrease in our
average debt balances. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Worldwide Income Taxes</FONT></H2>
<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="35%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Reported</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="13%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="13%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="13%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;Income taxes</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;68</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;62</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;136</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;111</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;Effective tax rate</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">32.6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">34.8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">34.0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">35.2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Ongoing(a)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;Income taxes</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;66</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;45</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;132</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;98</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;Effective tax rate</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">31.8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">28.8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">33.2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">32.8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Excludes
the effects of facility actions net loss (gain) and unusual items (income) expense. See
Note 8 for a discussion of these items. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Beginning in the first quarter of
2002, we changed the methodology we use in allocating taxes between facility actions net
loss (gain) and ongoing operating profit. We believe that this revised methodology is
more appropriate because of the substantial decline in the magnitude of facility actions
net loss (gain) relative to ongoing operating profit in 2002. This change only affects
intraperiod allocation of income taxes between facility actions net loss (gain) and
ongoing operating profit. Accordingly, it has no effect on net income for the quarter and
year-to-date and will have no effect on either net income or the allocation of income
taxes between </FONT></P>
<BR>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>26 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>





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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
ongoing operating profit and facility actions net loss (gain) for the full
year. The impact of this change on our ongoing effective tax rate for the quarter and
year-to-date was insignificant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The increase in our ongoing
effective tax rate for the quarter was primarily attributable to timing and mix of
earnings in the prior year. The increase in our year-to-date ongoing effective tax rate was
primarily attributable to adjustments related to prior years and timing and mix of
earnings in the prior year partially offset by a favorable change in certain
international tax rates. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Diluted Earnings Per
Share</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The components of diluted earnings
per common share (&#147;EPS&#148;) were as follows: </FONT></P>
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</TD>
</TR>
</TABLE>
<BR>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended(a)</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended(a)</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01(b)</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01(b)</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="57%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Ongoing operating earnings</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;0.45</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$0.36</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;0.86</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$0.66</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Facility actions net (loss) gain</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(0.02</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.01</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(0.05</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.02</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Unusual items income (expense)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.02</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.01</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.04</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Net income</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;0.45</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$0.38</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;0.85</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$0.68</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>See
Note 6 for the number of shares used in this calculation. </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>See
Note 3 for a discussion of the pro-forma impact of SFAS 142 on EPS in 2001. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>U.S. Results of
Operations</FONT></H2>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">% B(W)</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">% B(W)</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="40%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">System sales</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$3,590</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$3,381</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$7,017</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$6,610</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Revenues</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Company sales</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1,069</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;997</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$2,079</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1,949</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Franchise and license fees</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">131</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">127</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">255</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">245</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Total revenues</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1,200</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1,124</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$2,334</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$2,194</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Company restaurant margin</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;181</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;156</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">17</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;340</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;287</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">19</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">% of Company sales</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">17.0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">15.6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.4 </FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;ppts.</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16.4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14.7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.7 </FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;ppts.</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Ongoing operating profit</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;199</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;172</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;374</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;312</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>U.S. Restaurant Unit
Activity</FONT></H2>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Company</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Franchisees</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Licensees</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Total</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="41%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Balance at December 29, 2001</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4,284</FONT></TD>
        <TD WIDTH="6%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">12,733</FONT></TD>
        <TD WIDTH="6%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,545</FONT></TD>
        <TD WIDTH="6%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">19,562</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">New Builds</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">64</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">81</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">55</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">200</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Acquisitions(a)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">892</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,005</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,897</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Refranchising</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(39</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">39</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Closures</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(50</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(148</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(152</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(350</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Other(b)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(30</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(30</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Balance at June 15, 2002</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5,151</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">13,710</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,418</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">21,279</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">% of Total</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">24</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">65</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
units that existed at the date of the acquisition of YGR on May 7, 2002. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Represents
licensee units transferred from U.S. to International. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>27 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>





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<!-- MARKER PAGE="sheet: 21; page: 21" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>U.S. System Sales</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>System sales increased $209 million
or 6% in the quarter and $407 million or 6% year-to-date. Excluding the favorable impact
of the YGR acquisition, system sales increased 4% in the quarter and 5% year-to-date. The
increases were due to same store sales growth and new unit development, partially offset
by store closures. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>U.S. Revenues</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Company sales increased $72 million
or 7% in the quarter. Excluding the favorable impact of the YGR acquisition, Company
sales increased 3%. The increase was driven by new unit development and same store sales
growth at Taco Bell and KFC. The increase was partially offset by refranchising and store
closures. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the quarter, blended Company
same store sales for KFC, Pizza Hut and Taco Bell were up 3% due to an increase in both
transactions and average guest check. Same store sales at Taco Bell increased 8% due to a
4% increase in both transactions and the average guest check. Same store sales at KFC
increased 3%, primarily driven by a 2% increase in the average guest check. Same store
sales at Pizza Hut decreased 3% due to a 5% decrease in transactions partially offset by
an increase in the average guest check. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Franchise and license fees increased
$4 million or 2% in the quarter. Excluding the favorable impact of the YGR acquisition,
franchise and license fees increased 1%. The increase was driven by same store sales
growth and new unit development, partially offset by store closures. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Company sales increased $130 million
or 7% year-to-date. Excluding the favorable impact of the YGR acquisition, Company sales
increased 5%. The increase was driven by new unit development, same store sales growth at
Taco Bell and KFC and acquisitions of restaurants from franchisees. The increase was
partially offset by refranchising and store closures. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Year-to-date, blended Company same
store sales for KFC, Pizza Hut and Taco Bell were up 4% due to an increase in both
transactions and average guest check. Same store sales at Taco Bell increased 8% due to a
4% increase in both transactions and the average guest check. Same store sales at KFC
increased 4%, primarily driven by a 3% increase in the average guest check. Same store
sales at Pizza Hut were flat. A 3% decrease in transactions was offset by an increase in
the average guest check. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Franchise and license fees increased
$10 million or 4% year-to-date. Excluding the favorable impact of the YGR acquisition,
franchise and license fees increased 3%. The increase was driven by same store sales
growth and new unit development, partially offset by store closures. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>U.S. Company Restaurant
Margin</FONT></H2>
<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="53%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Company sales</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100.0</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100.0</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100.0</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100.0</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Food and paper</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">28.0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">28.6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">28.1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">28.6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Payroll and employee benefits</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30.8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30.8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">31.0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30.9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Occupancy and other operating expenses</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">24.2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">25.0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">24.5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">25.8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Restaurant margin</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">17.0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">15.6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16.4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14.7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Restaurant margin as a percentage of
sales increased approximately 140 basis points in the quarter. The increase includes the
favorable impact of approximately 50 basis points from the adoption of SFAS 142. The
remaining increase was primarily driven by same store sales growth. The increase was
partially offset by higher labor costs, primarily wage rates. </FONT></P>
<BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>28 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Restaurant margin as a percentage of
sales increased approximately 170 basis points year-to-date. The increase includes the
favorable impact of approximately 50 basis points from the adoption of SFAS 142. The
remaining increase was primarily driven by same store sales growth. The increase was
partially offset by higher labor costs, primarily wage rates. </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>U.S. Ongoing Operating
Profit</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ongoing operating profit increased
$27 million or 16% in the quarter, including a 3% favorable impact from the adoption of
SFAS 142. Excluding the favorable impact from the adoption of SFAS 142 and the YGR
acquisition, ongoing operating profit increased 11%. The increase was primarily driven by
same store sales growth at Taco Bell and KFC and lower provisions for doubtful franchise
and license receivables. The increase was partially offset by higher labor costs and
higher G&amp;A expenses. The increase in G&amp;A expenses was driven by increased spending on
leadership conferences for restaurant general managers and higher compensation-related
costs. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ongoing operating profit increased
$62 million or 20% year-to-date, including a 4% favorable impact from the adoption of
SFAS 142. Excluding the favorable impact from the adoption of SFAS 142 and the YGR
acquisition, ongoing operating profit increased 15%. The increase was primarily driven by
same store sales growth and lower provisions for doubtful franchise and license
receivables. The increase was partially offset by higher labor costs and higher G&amp;A expenses.
The increase in G&amp;A expenses was driven by higher compensation-related costs and increased
spending on leadership conferences for restaurant general managers. </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>International Results of
Operations</FONT></H2>
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<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">% B(W)</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">% B(W)</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="40%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">System sales</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1,868</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1,733</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$3,684</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$3,483</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Revenues</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Company sales</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;502</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;419</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;918</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;793</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Franchise and license fees</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">65</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">62</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">129</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">124</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Total revenues</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;567</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;481</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">18</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1,047</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;917</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Company restaurant margin</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;81</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">59</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;145</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;105</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">37</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">% of Company sales</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16.0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">12.1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.9 pp</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">ts.</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">15.7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">13.3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2.4 pp</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">ts.</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Ongoing operating profit</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">47</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;168</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;132</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">27</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2"></TD>
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<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>29 </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>International Restaurant
Unit Activity</FONT></H2>
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<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Company</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Unconsolidated<BR>Affiliates </FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Franchisees</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Licensees</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Total</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="42%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Balance at December 29, 2001</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,151</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,000</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6,530</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">246</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10,927</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">New Builds</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">131</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">57</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">173</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">363</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Acquisitions(a)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">38</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">172</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">210</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Refranchising</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Closures</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(35</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(14</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(122</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(13</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(184</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Other(b)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">22</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Balance at June 15, 2002</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,231</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,073</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6,769</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">265</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11,338</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">% of Total</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">18</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">60</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
units that existed at the date of the acquisition of YGR on May 7, 2002. </FONT></TD>
</TR>
</TABLE>
<BR>


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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Primarily
represents licensee units transferred from U.S. to International. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>International System
Sales</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>System sales increased $135 million
or 8% in the quarter, after a 2% unfavorable impact from foreign currency translation.
System sales increased $201 million or 6% year-to-date, after a 4% unfavorable impact
from foreign currency translation. The increases resulted from new unit development and
same store sales growth, partially offset by store closures. </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>International Revenues</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Company sales increased $83 million
or 20% in the quarter. The impact from foreign currency translation was not significant.
Company sales increased $125 million or 16% year-to-date, after a 1% unfavorable impact
from foreign currency translation. The increases were primarily driven by new unit
development. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Franchise and license fees increased
$3 million or 5% in the quarter, after a 3% unfavorable impact from foreign currency
translation. Franchise and license fees increased $5 million or 4% year-to-date, after a
4% unfavorable impact from foreign currency translation. The increases were driven by new
unit development and same store sales growth, partially offset by store closures. </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>International Company
Restaurant Margin</FONT></H2>
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</TD>
</TR>
</TABLE>
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<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended</FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="47%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Company sales</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100.0</FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100.0</FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100.0</FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100.0</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Food and paper</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">36.5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">37.4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">36.6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">37.1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Payroll and employee benefits</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">18.4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">19.9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">18.9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20.0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Occupancy and other operating expenses</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">29.1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30.6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">28.8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">29.6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Restaurant margin</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16.0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">12.1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">15.7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">13.3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>


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<TD>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Restaurant margin as a percentage of
sales increased approximately 390 basis points in the quarter, including the favorable
impact of approximately 60 basis points from the adoption of SFAS 142. The remaining
increase was driven by lower restaurant operating costs, primarily food and paper, and
same store sales growth. The lower restaurant operating costs also included the favorable
impact of the cessation of depreciation expense of approximately $1 million for the
Singapore business, which is held for sale. </FONT></P>
<BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>30 </FONT></P>

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<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Restaurant margin as a percentage of
sales increased approximately 240 basis points year-to-date, including the favorable
impact of approximately 60 basis points from the adoption of SFAS 142. The remaining
increase was driven by lower restaurant operating costs, primarily food and paper, and
same store sales growth. The lower restaurant operating costs also included the favorable
impact of the cessation of depreciation expense of approximately $2 million for the
Singapore business, which is held for sale. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>International Ongoing
Operating Profit</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ongoing operating profit increased
$28 million or 47% in the quarter, after a 3% unfavorable impact from foreign currency
translation. Excluding the impact of foreign currency translation and the favorable
impact from the adoption of SFAS 142, ongoing operating profit increased 42%. The
increase was primarily driven by new unit development, same store sales growth
and the favorable impact of lower restaurant operating costs. The increase was
partially offset by higher G&amp;A expenses, primarily compensation-related and
conference costs.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ongoing operating profit increased
$36 million or 27% year-to-date, after a 4% unfavorable impact from foreign currency
translation. Excluding the impact of foreign currency translation and the favorable
impact from the adoption of SFAS 142, ongoing operating profit increased 25%. The
increase was primarily driven by new unit development, the favorable impact of lower
restaurant operating costs and same store sales growth. The increase was partially offset
by higher G&amp;A expenses, primarily compensation-related and conference costs. </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Consolidated Cash Flows</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Net cash provided by operating
activities</B> was $498 million compared to $302 million in 2001. Excluding the impact of the
Ameriserve bankruptcy reorganization process, cash provided by operating activities was
$470 million versus $211 million in 2001. This increase was primarily driven by improved
operating profit and timing of receipts and payments. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Net cash used in investing
activities</B> was $529 million versus $210 million in 2001. The increase is primarily due to
the acquisition of YGR and higher capital spending in 2002, partially offset by the
acquisition of fewer restaurants from franchisees versus 2001. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Net cash provided by financing
activities</B> was $87 million versus net cash used by financing activities of $42 million in
2001. The increase in cash provided is primarily due to lower debt repayments and higher
proceeds from stock option exercises versus 2001, partially offset by higher stock
repurchases in 2002. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Financing Activities</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As more fully discussed in Note 9,
at June 15, 2002 our primary bank credit agreement was comprised of a senior unsecured
Term Loan Facility and a $1.75 billion senior unsecured Revolving Credit Facility,
(collectively referred to as the &#147;Existing Credit Facilities&#148;). The Existing Credit
Facilities were scheduled to mature on October 2, 2002. At June 15, 2002, we had unused
Revolving Credit Facility borrowings available aggregating $1.3 billion, net of
outstanding letters of credit of $0.2 billion. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Existing Credit Facilities
subjected us to certain mandatory principal repayment obligations, including prepayment
events as defined in the credit agreement. Interest on the Existing Credit Facilities was
based principally on the London Interbank Offered Rate (&#147;LIBOR&#148;) plus a variable margin
factor; therefore, our borrowing costs fluctuated depending upon the volatility in LIBOR. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On February 22, 2002, we entered
into an agreement to amend certain terms of the Existing Credit Facilities. This
amendment provided for, among other things, additional flexibility with respect to
acquisitions and other </FONT></P>
<BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>31 </FONT></P>

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<BR>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>investments. In addition,
we voluntarily reduced our maximum borrowings under the Revolving Credit Facility
from $3.0 billion to $1.75 billion.</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On June 25, 2002, we closed on a new
$1.4 billion senior unsecured Revolving Credit Facility (the &#147;New Credit Facility&#148;) which
replaces the Existing Credit Facilities. The New Credit Facility matures on June 25,
2005. We used the initial borrowings under the New Credit Facility to repay the
indebtedness under the Existing Credit Facilities. Accordingly, we have classified
amounts due under the Existing Credit Facilities as long-term debt in our Condensed
Consolidated Balance Sheet as of June 15, 2002. The interest rate for borrowings under
the New Credit Facility will range from 1.00% to 2.00% over LIBOR, or 0.00% to 0.65% over
an Alternate Base Rate which is the greater of the Prime Rate or the Federal Funds
Effective Rate plus 1%. The exact spread over LIBOR or the Alternate Base Rate, as
applicable, will depend upon our performance under specified financial criteria. Interest
is payable at least quarterly. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The New Credit Facility is
unconditionally guaranteed by our principal domestic subsidiaries and contains other
terms and provisions (including representations, warranties, covenants, conditions and
events of default) similar to those set forth in our Existing Credit Facilities.
Specifically, the New Credit Facility contains financial covenants, relating to
maintenance of leverage and fixed charge coverage ratios. Likewise, the New Credit
Facility contains affirmative and negative covenants including, among other things,
limitations on certain additional indebtedness, guarantees of indebtedness, cash
dividends, aggregate non-U.S. investment and certain other transactions as defined in the
agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As discussed in Note 2, we assumed
approximately $160 million in future rent obligations upon the acquisition of YGR related
to certain sale-leaseback agreements entered into by YGR prior to 2001 involving
approximately 350 LJS units. As a result of liens held by the buyer/lessor on certain
personal property within the units, the agreements have been accounted for as financings
and reflected as debt in our Financial Statements. Rental payments under these agreements
will be made on a monthly basis through 2019 with an effective interest rate of
approximately 11%. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On June 25, 2002, we also issued
$400 million of 7.70% Senior Unsecured Notes due July 1, 2012 (the &#147;Notes&#148;) under a shelf
registration statement previously filed with the Securities and Exchange Commission,
which is more fully discussed in the 2001 Form 10-K. The net proceeds from the issuance
of the Notes of approximately $391 million were used to repay indebtedness under the New
Credit Facility. Interest is payable January 1 and July 1 of each year, commencing on
January 1, 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We use derivative financial
instruments, including interest rate swaps, to lower interest expense and manage our
exposure to interest rate risk. See our market risk disclosure for further discussion of
our interest rate risk. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Consolidated Financial
Condition</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Assets</B> increased $685 million, or
16%, to $5.1 billion due to the acquisition of YGR. Unallocated purchase price of
approximately $515 million related to this acquisition is recorded in Other Assets at
June 15, 2002. The decrease in the allowance for doubtful accounts from $77 million to
$47 million was primarily the result of recoveries related to the AmeriServe bankruptcy
reorganization process (see Note 14) and the write-off of receivables previously fully
reserved. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Liabilities</B> increased $393 million,
or 9% to $4.7 billion primarily due to additional financing associated with the
acquisition of YGR. As discussed in Note 9, the decrease in short-term borrowings of $528
million is primarily the result of the replacement of our Existing Credit Facilities that
were to expire in October 2002 with the New Credit Facility that will expire in 2005. The
increase in current income taxes payable was primarily the result of a reclassification
from other liabilities and deferred credits for taxes that are now expected to be paid
within the next twelve months. </FONT></P>

<BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>32 </FONT></P>

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<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Liquidity</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating in the QSR industry allows
us to generate substantial cash flows from the operations of our company stores and from
our franchise operations. Franchise operations require us to make a limited investment in
operating assets. Typically, our cash flows include a significant amount of discretionary
capital spending. Though a decline in revenues could adversely impact our cash flows from
operations, we believe our operating cash flows and our ability to adjust discretionary
capital spending and borrow funds will allow us to meet our cash requirements for the
remainder of 2002 and beyond. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Significant contractual obligations
and payments as of June 15, 2002 due by year include: </FONT></P>
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</TD>
</TR>
</TABLE>
<BR>



<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Less than 1<BR>Year </FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1-3 Years</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4-5 Years</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Thereafter</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Total</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="38%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Long-term debt(a)</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;2</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$355</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;848</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1,050</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$2,255</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Short-term borrowings</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">156</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">156</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Debt excluding capital leases</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">158</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">355</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">848</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,050</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,411</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Operating leases(b)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">300</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">517</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">355</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">970</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,142</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Capital leases(b)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">24</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">18</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">82</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">135</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Franchisee financing</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;obligations</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Contractual obligations</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$499</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$896</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1,221</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$2,102</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$4,718</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Excludes
a fair value adjustment of $37 million included in debt as an adjustment related to
interest rate swaps that hedge the fair value of a portion of our debt. </FONT></TD>
</TR>
</TABLE>
<BR>


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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>These
obligations, which are shown on a nominal basis, relate to operating and capital leases
for approximately 4,800 restaurants. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD>

<A NAME="quantitative"></A>
<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Quantitative and
Qualitative Disclosures About Market Risk</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company is exposed to financial
market risks associated with interest rates, foreign currency exchange rates and
commodity prices. In the normal course of business and in accordance with our policies,
we manage these risks through a variety of strategies, which include the use of derivative
financial and commodity instruments to hedge our underlying exposures. Our policies
prohibit the use of derivative instruments for trading purposes, and we have procedures
in place to monitor and control their use. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Interest Rate Risk</U></FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our primary market risk exposure is
to changes in interest rates, principally in the United States. We attempt to minimize
this risk and lower our overall borrowing costs through the utilization of derivative
financial instruments, primarily interest rate swaps. These swaps are entered into with
financial institutions and have reset dates and critical terms that match those of the
underlying debt. Accordingly, any change in market value associated with interest rate
swaps is offset by the opposite market impact on the related debt. The notional amount of
interest rate swaps did not change during the quarter. During the quarter we entered into
treasury locks with notional amounts totaling $250 million. These treasury locks were
entered into to hedge the risk of changes in future interest payments attributable to
changes in the benchmark interest rate prior to issuance of additional fixed-rate debt.
These locks were designated and effective in offsetting the variability in cash flows
associated with the future interest payments on a portion of the Notes issued on June 25,
2002 (see Note 9). Thus, the insignificant loss at which these treasury locks were
settled will be recognized as an increase to interest expense on the debt through 2011. </FONT></P>
<BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>33 </FONT></P>

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<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At June 15, 2002 and December 29,
2001, a hypothetical 100 basis point increase in short-term interest rates would result
in a reduction of $9 million and $4 million, respectively, in annual income before taxes.
The estimated reductions are based upon the unhedged portion of our variable rate debt
and assume no changes in the volume or composition of debt. In addition, the fair value
of our derivative financial instruments at June 15, 2002 and December 29, 2001 would
increase approximately $13 million and decrease approximately $5 million, respectively.
The fair value of our Senior Unsecured Notes at June 15, 2002 and December 29, 2001 would
decrease approximately $68 million and $72 million, respectively. Fair value was
determined by discounting the projected cash flows. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Foreign Currency
Exchange Rate Risk</U></FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>International ongoing operating
profit constitutes approximately 31% of our year-to-date 2002 ongoing operating profit,
excluding unallocated and corporate expenses. In addition, the Company&#146;s net asset
exposure (defined as foreign currency assets less foreign currency liabilities) totaled
approximately $1 billion as of June 15, 2002. Operating in international markets exposes
the Company to movements in foreign currency exchange rates. The Company&#146;s primary
exposures result from our operations in Asia-Pacific and Europe. Changes in foreign
currency exchange rates would impact the translation of our investments in foreign
operations, the fair value of our foreign currency denominated financial instruments and
our reported foreign currency denominated earnings and cash flows. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We attempt to minimize the exposure
related to our investments in foreign operations by financing those investments with
local currency debt when practical. In addition, we attempt to minimize the exposure
related to foreign currency denominated financial instruments by purchasing goods and
services from third parties in local currencies when practical. Foreign currency
denominated financial instruments consist primarily of intercompany short-term
receivables and payables. At times, we utilize forward contracts to reduce our risk
exposure related to these foreign currency denominated financial instruments. The
notional amount and maturity dates of these contracts match those of the underlying
receivables or payables such that our foreign currency exchange risk related to these
instruments is eliminated. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><U>Commodity Price Risk</U></FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We are subject to volatility in food
costs as a result of market risk associated with commodity prices. Our ability to recover
increased costs through higher pricing is, at times, limited by the competitive
environment in which we operate. We manage our exposure to this risk primarily through
pricing agreements as well as, on a limited basis, commodity future and option contracts.
Commodity future and option contracts outstanding at June 15, 2002 were not significant
to the Consolidated Financial Statements. There were no commodity future or option
contracts outstanding at December 29, 2001. </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Cautionary Statements</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>From time to time, in both written
reports and oral statements, we present &#147;forward-looking statements&#148; 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. The statements include those identified by
such words as &#147;may,&#148; &#147;will,&#148; &#147;expect,&#148; &#147;anticipate,&#148; &#147;believe,&#148; &#147;plan&#148; and other similar
terminology. These &#147;forward-looking statements&#148; reflect our current expectations
regarding future events and operating and financial performance and are based upon data
available at the time of the statements. Actual results involve risks and uncertainties,
including both those specific to the Company and those specific to the industry, and
could differ materially from expectations. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Company risks and uncertainties
include, but are not limited to, potentially substantial tax contingencies related to the
Spin-off, which, if they occur, require us to indemnify PepsiCo, Inc.; our substantial
debt leverage and the attendant potential restriction on our ability to borrow in the
future, as well as our substantial interest</FONT></P>
<BR>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>34 </FONT></P>

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</TD>
</TR>
</TABLE>
<BR>





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<BR>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>expense and principal repayment obligations;
potential unfavorable variances between estimated and actual liabilities including the
liabilities related to the sale of the non-core businesses; our ability to secure
alternative distribution of products and equipment to our restaurants and our ability to
ensure adequate supply of restaurant products and equipment in our stores; the ongoing
financial viability of our franchisees and licensees; volatility of actuarially
determined losses and loss estimates and adoption of new or changes in accounting
policies and practices including pronouncements promulgated by standard setting bodies.</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Industry risks and uncertainties
include, but are not limited to, global and local business, economic and political
conditions; legislation and governmental regulation; competition; success of operating
initiatives and advertising and promotional efforts; volatility of commodity costs;
increases in minimum wage and other operating costs; availability and cost of land and
construction; consumer preferences, spending patterns and demographic trends; political
or economic instability in local markets and changes in currency exchange and interest
rates. </FONT></P>
<BR><BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>35 </FONT></P>

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</TD>
</TR>
</TABLE>
<BR>






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<TD><HR SIZE=5 NOSHADE>
<BR>

<A NAME="report"></A>
<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Independent
Accountants&#146; Review Report</U></FONT></H1>


<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board of Directors<BR> YUM! Brands,
Inc.: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have reviewed the accompanying
condensed consolidated balance sheet of YUM! Brands, Inc. and Subsidiaries (&#147;YUM&#148;)
(formerly TRICON Global Restaurants, Inc.) as of June 15, 2002 and the related condensed
consolidated statements of income for the twelve and twenty-four weeks ended June 15,
2002 and June 16, 2001 and the condensed consolidated statements of cash flows for the
twenty-four weeks ended June 15, 2002 and June 16, 2001. These condensed consolidated
financial statements are the responsibility of YUM&#146;s management. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We conducted our review in
accordance with standards established by the American Institute of Certified Public
Accountants. A review of interim financial information consists principally of applying
analytical review procedures to financial data and making inquiries of persons
responsible for financial and accounting matters. It is substantially less in scope than
an audit conducted in accordance with auditing standards generally accepted in the United
States of America, the objective of which is the expression of an opinion regarding the
financial statements taken as a whole. Accordingly, we do not express such an opinion. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Based on our review, we are not
aware of any material modifications that should be made to the condensed consolidated
financial statements referred to above for them to be in conformity with accounting
principles generally accepted in the United States of America. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have previously audited, in
accordance with auditing standards generally accepted in the United States of America,
the consolidated balance sheet of YUM as of December 29, 2001, and the related
consolidated statements of income, cash flows and shareholders&#146;equity (deficit) and
comprehensive income for the year then ended not presented herein; and in our report
dated February 7, 2002, except as to Note 12 which is as of February 22, 2002, we
expressed an unqualified opinion on those consolidated financial statements. In our
opinion, the information set forth in the accompanying condensed consolidated balance
sheet as of December 29, 2001, is fairly presented, in all material respects, in relation
to the consolidated balance sheet from which it has been derived. </FONT></P>
<BR><BR>






<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>KPMG LLP<BR> Louisville, Kentucky<BR> July
19, 2002 </FONT></P>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>36 </FONT></P>

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</TD>
</TR>
</TABLE>
<BR>





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<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>PART II &#150; Other
Information and Signatures</FONT></H2>


<A NAME="legal_proceeding"></A>
<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 1. Legal Proceedings </FONT></P>
<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=8%>&nbsp;</TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Information
regarding legal proceedings is incorporated by reference from Note 13 to the Company&#146;s
Condensed Consolidated Financial Statements set forth in Part I of this report. </FONT></TD>
</TR>
</TABLE>
<BR>


<A NAME="submission"></A>
<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 4. Submission of Matters to a
Vote of Security Holders </FONT></P>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=8%>&nbsp;</TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Our
Annual Meeting of shareholders was held on May 16, 2002. At the meeting, shareholders
elected four directors, ratified the appointment of KPMG LLP as our independent auditors,
ratified the amendment to our Articles of Incorporation and rejected a shareholder
proposal. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=8%>&nbsp;</TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Results
of the voting in connection with each item were as follows: </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="TOP">
     <TD COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(a)</FONT></TD>
     <TH COLSPAN="2" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Election of Directors</FONT><HR WIDTH=45% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">For</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Withheld</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="6%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="34%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">James Dimon</FONT></TD>
     <TD WIDTH="6%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="22%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">126,582,153</FONT></TD>
        <TD WIDTH="6%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="22%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,155,467</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Massimo Ferragamo</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">126,582,621</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,154,999</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Thomas M. Ryan</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">125,682,214</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,055,406</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Robert J. Ulrich</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">126,578,354</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,159,266</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=8%>&nbsp;</TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
following directors were not required to stand for re-election at the meeting (the year
in which each director&#146;s term expires as indicated in parenthesis): </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=8%>&nbsp;</TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
D.
Ronald Daniel (2003), Robert Holland, Jr. (2004), Sidney Kohl (2004), Kenneth G. Langone
(2003), David C. Novak (2004), Andrall E. Pearson (2003), Jackie Trujillo (2004) and John
L. Weinberg (2003). </FONT></TD>
</TR>
</TABLE>
<BR>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">For</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Against</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Abstain</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">No Vote</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(b)</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="40%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Ratification of Independent Auditors</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="13%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">122,498,968</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5,066,687</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">171,965</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(c)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Amended Articles of Incorporation</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">126,353,079</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,098,035</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">286,506</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(d)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Shareholder Proposal</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16,063,437</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">88,526,211</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3,875,199</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">19,272,773</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>



<A NAME="exhibits"></A>
<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 6. Exhibits and Reports on Form
8-K </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit
Index </FONT></TD>
</TR>
</TABLE>
<BR>




<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">EXHIBITS</FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH></TR>
<TR><TD>&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="15%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Exhibit 12</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="75%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Computation of Ratio of Earnings to Fixed Charges</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR><TD>&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Exhibit 15</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Letter from KPMG LLP regarding Unaudited Interim<BR>Financial Information (Accountants&#146; Acknowledgment)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR><TD>&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Exhibit 99</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Impact of SFAS 142 for fiscal years ended 2001, 2000 and 1999.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reports
on Form 8-K </FONT></TD>
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<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We
filed a Current Report on Form 8-K dated May 1, 2002, attaching our first quarter ended
March 23, 2002 earnings release dated April 29, 2002.</FONT></TD>
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<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We
filed a Current Report on Form 8-K dated May 7, 2002, attaching a press release
announcing the completion of the acquisition of Yorkshire Global Restaurants, Inc. In
addition, the Company announced that its Board of Directors approved a two-for-one stock
split on the Company&#146;s outstanding shares of common stock to be effective at the close of
business on June 6, 2002. Furthermore, the Company announced it will change its corporate
name to YUM! Brands, Inc.</FONT></TD>
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<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We
filed a Current Report on Form 8-K dated May 16, 2002, announcing that shareholders had
approved the Registrant&#146;s name change from TRICON Global Restaurants, Inc. to YUM!
Brands, Inc.</FONT></TD>
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<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We
filed a Current Report on Form 8-K dated May 22, 2002, reporting our April/May sales. We
also reaffirmed our second-quarter and recently increased full-year ongoing operating EPS
guidance. We also noted the impact of pending stock split on EPS Guidance.</FONT></TD>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>38 </FONT></P>

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<A NAME="signatures"></A>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES</FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pursuant to the requirement of the
Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, duly authorized officer of the registrant. </FONT></P>

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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=60% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>YUM! BRANDS, INC.
<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
(Registrant)</FONT></TD>
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<TD WIDTH=30% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date:    July 29, 2002</FONT></TD>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=45%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/      Brent A. Woodford <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Vice President and Controller<BR>(Principal Accounting Officer)</FONT></TD>
</TR>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>39 </FONT></P>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12
<SEQUENCE>3
<FILENAME>d51163_ex12.htm
<DESCRIPTION>EXHIBIT 12
<TEXT>
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     <!-- Control Number: 02-51163                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Business Wire                                                    -->
     <!-- Project Name:   Form: 10-Q                                                       -->
     <!-- Firm Name:      Yum! Brands, Inc.                                                -->
     <TITLE>EX-12</TITLE>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 12 </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2> YUM! Brands,
Inc.<BR> Ratio of Earnings to Fixed Charges Years Ended 2001-1997<BR> and 24 Weeks Ended June 15,
2002 and June 16, 2001<BR> (in millions except ratio amounts) </FONT></P>
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     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52<BR> Weeks </FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">53<BR> Weeks </FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52 Weeks </FONT><HR WIDTH=85% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24 Weeks Ended </FONT><HR WIDTH=90% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2001</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2000</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1999</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1998</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1997</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/15/02</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6/16/01</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="43%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><I>Earnings:</I></FONT></FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Pretax income from continuing operations</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;before cumulative effect of accounting</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;changes(a)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;733</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;684</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;1,038</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;756</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$(35</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;400</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;315</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Unconsolidated affiliates&#146; interests,</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;net(a)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(13</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(12</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(10</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Interest expense(a)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">172</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">190</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">218</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">291</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">290</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">70</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">84</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Interest portion of net rent expense(a)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">93</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">87</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">90</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">105</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">118</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">48</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">37</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Earnings available for fixed charges</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;991</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;948</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;1,334</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;1,142</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;370</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;511</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;428</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
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     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Fixed Charges:</I></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Interest expense(a)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;172</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;190</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;218</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;291</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;290</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;70</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;84</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Interest portion of net rent  expense(a)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">93</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">87</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">90</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">105</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">118</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">48</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">37</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Total fixed charges</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;265</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;277</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;308</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;396</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;408</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;118</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;121</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Ratio of earnings to fixed</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;charges(b)(c)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.74x</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.42x</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4.33x</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2.88x</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.91x</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4.33x</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.54x</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR>
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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Included
in earnings for 1997 are certain allocations related to overhead costs and interest
expense from PepsiCo. For purposes of these ratios, earnings are calculated by adding to
(subtracting from) pretax income from continuing operations before income taxes and
cumulative effect of accounting changes the following: fixed charges, excluding
capitalized interest; (equity income (loss) from unconsolidated affiliates); and
distributed income from unconsolidated affiliates. Fixed charges consist of interest on
borrowings, the allocation of PepsiCo&#146;s interest expense for 1997 and that portion of
rental expense that approximates interest. </FONT></TD>
</TR>
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<BR>


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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Included
the impact of unusual items (income) expense of $(20) million and $(2) million for the 24
weeks ended June 15, 2002 and June 16, 2001, respectively. The full year impact was $(3)
million in 2001, $204 million in 2000, $51 million in 1999, $15 million in 1998, and $184
million in 1997. Excluding the impact of these unusual items, the ratio of earnings to
fixed charges would have been 4.16x and 3.52x for the 24 weeks ended June 15, 2002 and
June 16, 2001, respectively and 3.73x, 4.16x, 4.49x, 2.92x, and 1.36x for the fiscal
years ended 2001, 2000, 1999, 1998, and 1997, respectively. </FONT></TD>
</TR>
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<BR>


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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For
the fiscal year ended December 27, 1997, earnings were insufficient to cover fixed
charges by approximately $38 million. Earnings in 1997 included a charge of $530 million
taken in the fourth quarter to refocus our business. </FONT></TD>
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<DOCUMENT>
<TYPE>EX-15
<SEQUENCE>4
<FILENAME>d51163_ex15.htm
<DESCRIPTION>EXHIBIT 15
<TEXT>
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     <!-- Control Number: 02-51163                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Business Wire                                                    -->
     <!-- Project Name:   Form: 10-Q                                                       -->
     <!-- Firm Name:      Yum! Brands, Inc.                                                -->
     <TITLE>EX-15</TITLE>
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<P align=right><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>EXHIBIT 15</B> </FONT></FONT> </P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accountants&#146;
Acknowledgment</FONT></H1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board of Directors<BR> YUM! Brands,
Inc.: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We hereby acknowledge our awareness
of the use of our report dated July 19, 2002 included within the Quarterly Report on Form
10-Q of YUM! Brands, Inc. (formerly TRICON Global Restaurants, Inc.) for the twelve and
twenty-four weeks ended June 15, 2002, and incorporated by reference in the following
Registration Statements: </FONT></P>
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<TR VALIGN="BOTTOM">
     <TH COLSPAN="2" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Description</FONT><HR WIDTH=15% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration Statement Number</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="57%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="1"><B><U>Forms S-3 and S-3/A</U></B></FONT></FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="38%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">YUM! Direct Stock Purchase Program</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">333-46242</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$2,000,000,000 Debt Securities</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">333-42969</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR><TD>&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="1"><B><U>Form S-8s</U></B></FONT></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">YUM! Restaurants Puerto Rico, Inc. Save-Up Plan</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">333-85069</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Restaurant Deferred Compensation Plan</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">333-36877, 333-32050</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Executive Income Deferral Program</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">333-36955</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">YUM! Long-Term Incentive Plan</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">333-36895, 333-85073, 333-32046</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">SharePower Stock Option Plan</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">333-36961</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">YUM! Long-Term Savings Program</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">333-36893, 333-32048</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">YUM! Brands, Inc. Restaurant General Manager</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Stock Option Plan</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">333-64547</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">YUM! Brands, Inc. Long Term Incentive Plan</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">333-32052</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pursuant to Rule 436(c) of the
Securities Act of 1933, such report is not considered a part of a registration statement
prepared or certified by an accountant or a report prepared or certified by an accountant
within the meaning of Sections 7 and 11 of the Act. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>KPMG LLP<BR> Louisville, Kentucky<BR> July
26, 2002 </FONT></P>
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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>5
<FILENAME>d51163_ex99.htm
<DESCRIPTION>EXHIBIT 99
<TEXT>
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     <!-- Control Number: 02-51163                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Business Wire                                                    -->
     <!-- Project Name:   Form: 10-Q                                                       -->
     <!-- Firm Name:      Yum! Brands, Inc.                                                -->
     <TITLE>EX-99</TITLE>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 99 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Impact of SFAS 142 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company has adopted Statement of
Financial Accounting Standards No. 142, &#147;Goodwill and Other Intangible Assets&#148; (&#147;SFAS
142&#148;). As a result of adopting SFAS 142, we ceased amortization of goodwill and
indefinite-lived intangible assets. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table provides a
reconciliation of reported net income for fiscal years 2001, 2000 and 1999 to net income
adjusted as though SFAS 142 had been effective. Per share amounts have been adjusted to
reflect the two-for-one common stock split distributed on June 17, 2002 to
shareholders of record as of June 6, 2002.</FONT></P>
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     <TH COLSPAN="2" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(in millions, except per share data -
      unaudited)</FONT></TH>
     <TH COLSPAN="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2001</FONT></TH></TR>


<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
      <TH COLSPAN="6"><HR WIDTH=90% SIZE=1 NOSHADE></TH></TR>

<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Amount</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Basic EPS</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Diluted EPS</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Reported net income</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$492</FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1.68</FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1.62</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Add back amortization (net of tax):</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Goodwill</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">25</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.09</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.09</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Indefinite-lived intangible assets</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;Adjusted net income</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$518</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1.77</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1.71</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(in millions, except per share data -
      unaudited)</FONT></TH>
     <TH COLSPAN="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2000</FONT></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
      <TH COLSPAN="6"><HR WIDTH=90% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Amount</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Basic EPS</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Diluted EPS</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Reported net income</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$413</FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1.41</FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1.39</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Add back amortization (net of tax):</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Goodwill</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">23</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.08</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.08</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Indefinite-lived intangible assets</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;Adjusted net income</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$437</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1.49</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1.47</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(in millions, except per share data -
      unaudited)</FONT></TH>
     <TH COLSPAN="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1999<br></FONT></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
      <TH COLSPAN="6"><HR WIDTH=90% SIZE=1 NOSHADE></TH></TR>

<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Amount</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Basic EPS</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Diluted EPS</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Reported net income</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$627</FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$2.05</FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$1.96</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Add back amortization (net of tax):</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Goodwill</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">27</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.09</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.09</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;Indefinite-lived intangible assets</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;Adjusted net income</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$655</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$2.14</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$2.05</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>

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