Yum Brands 2nd Qtr 2008 Beats The Street

Yum! Brands Inc. Reports Second-Quarter 2008 EPS of $0.45 per share,
16% Growth Excluding Special Items;
Raises Full-Year EPS Growth Forecast to 12% from 11%, Excluding Special Items
Louisville, Ky. (July 16, 2008) — Yum! Brands Inc. (NYSE: YUM) today reported results for the second quarter ended June 14, 2008.

SECOND-QUARTER HIGHLIGHTS
• Very strong system-sales growth of +43% in mainland China and +15% in Yum! Restaurants
International (YRI), fueled by broad-based unit development, same-store-sales growth, and favorable
foreign currency translation.
• Worldwide same-store-sales growth of +4%, including +14% in mainland China, +4% in YRI, and +2% in the U.S. (all figures are system-wide).
• Operating profit growth of +38% in China Division and +18% in YRI, with a 12% decline in the U.S.
• Lower effective tax rate versus prior year.
• Increased quarterly dividend by 27% with our yield now about 2%.


• EPS results as outlined below:
-------------------------------------Second Quarter----------------- Year-to-Date
-------------------------------2008---- 2007---- % Change-- 2008---- 2007---- % Change
EPS Excluding Special Items---- $0.45--- $0.39----- +16%----- $0.87---- $0.74 -----+17%
Special Items1--------------- ($0.00)--- – NM---------------- $0.08--- – NM
EPS--------------------------- $0.45--- $0.39----- +15%----- $0.95---- $0.74----- +28%

1 In the second quarter, special items totaled less than a $0.01 negative impact to EPS and included $4 million of pre-tax charges
related to U.S. restructuring partially offset by $1 million of pre-tax U.S. refranchising gains.

FULL-YEAR OUTLOOK
The Company, for the second time, raised its full-year 2008 EPS forecast. We expect to generate $1.89 per share or 12% growth, a $0.02 increase from our previous guidance in our first-quarter earnings release. This is prior to full-year net gains from special items of up to $0.06 per share as previously announced in the Company’s full-year 2007 earnings release on February 4, 2008. Full-year reported EPS, including all items, is expected to total up to $1.95, or 16% growth.