LETTER TO SHAREHOLDERS

October 7, 1997 - Founders Day for the people and shareholders of Tricon Global Restaurants.  The day we declared our independence from PepsiCo and made our commitment to be the highest performing restaurant company in the world - and
one of your best investments.
While we couldn't imaging being in a more fun business, we couldn't be more serious about delivering on this promise.  And there's no question in our minds we'll be able to do just that by being a focuses restaurant company, led and operated by people who love the restaurant business - people who put their people first (train them, recognize them, reward them.  In turn, they'll satisfy more customers, and guess what, you'll take more money to the bank than anyone else.  That's the real key to our business.
A NEW KIND OF COMPANY

This is our first Annual Report.  It will give you a sense of the enthusiasm we all have for our tremendous opportunity to grow
Pizza Hut, Taco Bell and KFC around the world.  We have been endowed with three of the globe's most recognized icons,
and we're certain we have barely begun to scratch the surface of growth potential at hand.  So what's going to be different? 
That's a fair question that deserves an answer.  While we've just begun our new company, we've made much progress these
last three months, and we'd like to share that with you.   We're focuses on five key growth strategies:

 

First, we're dramatically improving our operations execution by recognizing the Restaurant General
Manager is our number one leader. 
While our executive teams set strategy and allocate resources,
it's the RGM who builds the team at the restaurant that satisfies our customers.  We learned an
undeniable truth as we completely turned around KFC these last four years:  when we have great RGMs,
we have well-run restaurants that make lots of money.  And the exact opposite happens when we don't. 
So we plan to do the very best job helping our number one leaders be better coaches and master the key
operating processes.

From our training programs, to renaming our headquarters buildings "Restaurant Support Centers" and uniquely placing our
RGMs' picture on our stock certificates, everything we do is geared to help our RGMs better serve our customers and have fun
recognizing those who are doing it very well.  Importantly, we're paying for performance.  We've launched YUMBUCKS, an
innovative program that grants each RGM an initial $20,000 in stock options, with the likelihood of more based on the annual
performance of his or her restaurant.

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