With over 29,000 Pizza Hut, Taco Bell and KFC units, PepsiCo's system has more restaurants than any other in the world. Our brands each lead their categories, generating annual retail sales of more than $20 billion.

While 1996 U.S. profits declined in a lackluster industry, KFC bucked the trend, with same store sales surging 6%. Our brands were particularly strong in the high-potential international market, where we posted double-digit sales and profit growth. To enable our businesses to achieve their full potential, in 1997 PepsiCo will spin off its re staurants from its snack and beverage businesses. That will create a powerful new restaurant company with expected annual revenues of $10 billion a nd a vast global opportunity.

PepsiCo's restaurant business ranks second largest in the world in system sales. Worldwide quick service restaurant industry sales are about $160 billion.	The quick service restaurant industry continues to expand, with sales growing about 5% in 1996.
Our restauants are busy at different times of the day. By combining two concepts in one unit we've boosted sales and returns.	More than half of the food we sell is eaten off-premises.
We're truly global. Our restaurants are popular around the world and growth is strong.	PepsiCo's system includes more restaurants than any other in the world. Our brands are in nearly 100 countries and territories.

[1996 Annual Report]
[Beverages] [Snack Foods] [Restaurants]