45 unchanged sentences
• Bold Restaurant Development:
−Removed: Drive market and franchise expansion with strong economics and value
+Added: Drive market and franchise unit expansion with strong economics and value
Information about Operating Segments
9 unchanged sentences
The Company has franchise relationships that are particularly important to our business, such as our relationship with Yum China (defined below) and our relationships with certain other large franchisees.
−Removed: The Company has successfully increased franchise restaurant ownership in recent years, and currently has approximately 1,500 franchisees with whom we have franchise contracts.
+Added: The Company currently has approximately 1,500 franchisees with whom we have franchise contracts.
The Company utilizes both store-level franchise and master franchise programs to grow our businesses.
−Removed: Of our over 54,000 franchised units at December 31, 2022, approximately 35% operate under our master franchise programs, including nearly 12,100 units in mainland China.
+Added: Of our over 57,000 franchised units at December 31, 2023, approximately 35% operate under our master franchise programs, including over 13,700 units in mainland China.
The remainder of our franchise units operate under store-level franchise agreements.
5 unchanged sentences
Master franchisees are typically responsible for overseeing development within their territories and performing certain other administrative duties with regard to the oversight of sub-franchisees.
−Removed: In exchange, master franchisees retain a certain percentage of fees payable by the sub-franchisees under their franchise agreements and typically pay lower fees for the restaurants they operate.
+Added: In exchange, master franchisees retain a certain percentage of fees payable by the sub-franchisees under their franchise agreements and often pay lower fees for the restaurants they operate.
On October 31, 2016, we completed the spin-off of our China business into an independent, publicly-traded company under the name of Yum China Holdings, Inc.
8 unchanged sentences
Non-traditional units include express units that have a more limited menu, usually generate lower sales volumes and operate in non-traditional locations like malls, airports, gasoline service stations, train stations, subways, convenience stores, stadiums, amusement parks and colleges, where a full-scale traditional outlet would not be practical or efficient.
−Removed: Most restaurants in each Concept offer consumers the ability to dine in, carryout and/or have the Concepts’ food delivered either through store-level or third-party delivery services.
−Removed: In addition, Taco Bell and KFC offer a drive-thru option in many stores.
−Removed: Pizza Hut and Habit Burger Grill offer a drive-thru option on a much more limited basis.
+Added: Most restaurants in each Concept offer consumers the ability to dine in, carryout and/or have the Concepts’ food delivered either by store-level personnel or third-party delivery services such as aggregators.
+Added: In addition, Taco Bell, KFC and Habit Burger Grill offer a drive-thru option in many stores.
+Added: Pizza Hut offers a drive-thru option on a much more limited basis.
Restaurant management structure varies by Concept, unit size and franchise organization.
2 unchanged sentences
These manuals set forth standards and requirements for restaurant operations, including food safety and quality, food handling and product preparation procedures, equipment maintenance, facility standards and accounting control procedures.
−Removed: Each franchise organization and their respective restaurant management teams are responsible for the day-to-day operation of each unit, including all matters related to employment of restaurant staff, and for ensuring compliance with operating standards.
−Removed: We have accelerated our deployment of digital and technology initiatives to enhance the customer experience and our off-premise capabilities.
−Removed: This includes increasing our focus on driving digital sales where customers utilize ordering interaction that is primarily facilitated by automated technology.
−Removed: In 2022, our system restaurants generated digital sales of $24 billion and over 47,000 restaurants now offer delivery, which represents approximately 85% of our global system.
−Removed: Delivery can be provided through either a delivery system owned and operated by our restaurants or through third-party delivery companies such as aggregators.
+Added: Each franchise organization and their respective restaurant management teams are responsible for the day-to-day operation of their units, including all matters related to employment of restaurant staff, and for ensuring compliance with operating standards.
+Added: Digital and technology are at the core of our Recipe for Good Growth.
+Added: In recent years the Company has focused on building and acquiring a distinctive set of solutions with next-generation capabilities tailored for our brands and scaling these common digital and technology platforms across the globe.
+Added: The Company's technology initiatives are aligned with the “Easy” element of its Relevant, Easy and Distinctive Brands growth driver:
+Added: easy experiences for our customers, easy operations for our team members and franchisees and easy insights from our data.
+Added: Together, our technological initiatives are designed to simultaneously enhance the experience for our customers and restaurant-level employees while driving profitable sales growth.
+Added: Digital sales include transactions where consumers at system restaurants utilize ordering interaction that is primarily facilitated by automated technology.
+Added: In 2023, our system restaurants generated digital sales of $29 billion, representing over 45% of overall system sales.
The Company and its Concepts own numerous registered trademarks.
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Additionally, The Habit Burger Grill entered into a purchasing agreement with RSCS effective July 31, 2020.
−Removed: The core mission of RSCS is to provide the lowest possible sustainable store-delivered prices for
−Removed: restaurant products and equipment.
+Added: The core mission of RSCS is to provide the lowest possible sustainable store-delivered prices for restaurant products and equipment.
This arrangement combines the purchasing power of the Company-owned and franchisee restaurants, which the Company believes leverages the system’s scale to drive cost savings and effectiveness in the purchasing function.
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Human Capital Management
−Removed: As of December 31, 2022, the Company and its subsidiaries employed approximately 36,000 persons, including approximately 23,000 employees in the U.S.
+Added: As of December 31, 2023, the Company and its subsidiaries employed approximately 35,000 persons (collectively referred to throughout this filing as "our employees" or "YUM employees"), including approximately 25,000 employees in the U.S.
and approximately 10,000 employees outside the U.S.
17 unchanged sentences
• Providing YUM employees with training and development that builds world-class leaders and drives business results.
−Removed: We promote these efforts through initiatives such as our leadership development program (Heartstyles), our unconscious bias program (Inclusive Leadership) and training programs with respect to our compliance polices,
−Removed: including our Code of Conduct.
+Added: We promote these efforts through initiatives such as our leadership development program (Heartstyles), our unconscious bias program (Inclusive Leadership) and training programs with respect to our compliance polices, including our Code of Conduct.
Our Heartstyles program is also available to our franchisees so that their employees may benefit as well.
7 unchanged sentences
In 2022, approximately 43% of our global corporate leadership roles were held by women and approximately 52% of our global workforce were women.
−Removed: • Increasing representation of underrepresented U.S.
−Removed: associates among our executive and management ranks, franchisees and suppliers over the next 10 years to achieve our aspirational goals to be representative of our customers and communities.
−Removed: Through our membership with the OneTen coalition, we are partnering with a group of U.S.
−Removed: businesses to create career mobility and advancement opportunities for underrepresented people and communities.
• Continuing to make Inclusive Leadership training and anti-racism training available across our system.
6 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.