Tricon Global Restaurants, Inc. (NYSE:YUM) yesterday announced three executive appointments to strengthen the Company’s focus on new unit expansion and KFC‘s sales growth and operations. Separately, the Company also reconfirmed full-year 2000 earnings expectations of at least $2.95 in ongoing operating earnings per share.
Chuck Rawley, 50, was appointed Chief Development Officer of Tricon, leading all restaurant expansion in the U.S. for KFC, Taco Bell, Pizza Hut and multi-branded units. Rawley will also be charged with identifying and developing new business opportunities for Tricon. A 15-year veteran of Tricon and PepsiCo Restaurants, Rawley has served in a number of executive capacities, most recently as KFC’s President and Chief Operating Officer. He will report to Tricon CEO David Novak, and transition into his new assignment over the next few months.
Tricon has also announced that Cheryl Bachelder, 44, has been named KFC’s President and Chief Concept Officer. Bachelder joins KFC from Domino’s Pizza, LLC, where she served as an Executive Vice President, responsible for planning, marketing, R&D and concept development. During the past five years, she has been credited as the chief architect of turning around the Domino’s brand and establishing programs that have driven same store sales at a compound rate exceeding 4%. Bachelder previously served in senior general management positions at RJR Nabisco, and product management at Gillette and Procter & Gamble. Bachelder will join the Company in mid-February and report to Novak.
“New unit expansion, including multi-branding, a concept that uniquely places two or three Tricon brands under one roof, is one of Tricon’s greatest growth vehicles going forward,” said David Novak. “We remain on plan to open nearly 4,000 new U.S. restaurants over the next ten years, 45% of which will be multi-branded restaurants. At the same time, we expect the Tricon system to convert nearly 3,000 single branded restaurants into higher-return multi-branded units from a base of 1,100 multi-branded restaurants today. Chuck Rawley is a seasoned restaurant operator and franchise leader who has positioned KFC well for the future. He’s the best possible person to lead our new unit development and serve as my strategic partner in identifying new business opportunities.
“We identified Cheryl Bachelder as a leader in our industry at driving same store sales growth and I’m delighted we successfully recruited her to do the same for KFC. She has a proven track record of building brands, working with franchisees, and aligning an entire system around product quality and customer focus. Cheryl’s skills are ideally suited to tap the obvious sales potential of the KFC brand. I’m confident she will energize the system and drive KFC’s sales and profits. Chuck Rawley will work closely with Cheryl to ensure the smoothest possible transition over the next few months.”
Tricon also announced that Mark Cosby, 41, has been named KFC’s Chief Operating Officer, assuming operations leadership of all 5,600 company-owned and franchised KFC restaurants in the U.S. Cosby will report jointly to Bachelder and Aylwin Lewis, Tricon’s Chief Operating Officer.
Cosby has been with the Company for 11 years, most recently leading Tricon’s development and multi-branding functions. Prior to that, Cosby served in a number of senior capacities at KFC, including operations, development, strategic planning and purchasing. “We know that running great restaurants as one system is our number one business growth opportunity. Mark Cosby’s passion for restaurant excellence and his `customer mania’ attitude will make KFC’s operations best in class,” said Aylwin Lewis.
KFC’s company operations had been led by Bill Eubanks, SVP, who will become a franchisee of 40 KFC and Pizza Hut restaurants currently owned by Tricon. “As Mark transitions into his new role, we also want to wish our newest franchisee, Bill Eubanks, continued success. Bill’s extraordinary ability as a restaurant operator will make him a superb KFC and Pizza Hut franchisee,” Lewis added.
In conclusion, Novak said, “these executive changes will strengthen the Tricon and KFC management teams with experienced leaders who get results. I am confident these changes will enable Tricon to achieve its growth and earnings goals over both the short- and long-term.”
Tricon is the world’s largest restaurant company in terms of system units, with over 30,000 restaurants around the world in over 100 countries and territories. Tricon’s three brands, KFC, Pizza Hut and Taco Bell are the global leaders of the chicken, pizza and Mexican categories, respectively. Total worldwide system sales were nearly $22 billion in 1999.
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These “forward-looking” statements reflect management’s expectations and are based upon currently available data; however, actual results are subject to future events and uncertainties, which could cause actual results to differ from those, projected in these statements. Factors that can cause actual results to differ materially include economic and political conditions in the countries and territories where Tricon operates, the impact of such conditions on consumer spending and currency exchange rates, pricing pressures resulting from competitive discounting, new product and concept development by Tricon and other food industry competitors, the success of our refranchising strategy, fluctuations in commodity prices, supplier contracts, business viability of our key distributor and franchise operators, and actuarially determined casualty loss estimates. Further information on factors that could affect Tricon’s financial and other results are included in the company’s Forms 10-Q and 10-K, filed with the Securities and Exchange Commission.