TRICON'S CHAINS FEEL JUNE SWOON IN SALES

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(June 21, 2001) -- Domestic sales for Pizza Hut and Taco Bell felt the impact of a June swoon as Tricon Global Restaurants reported a blended sales gain of 1% for the quarter ended June 16.

Taco Bell posted a 2% quarterly decline, despite rolling out its Grilled Stuft Burrito and tie-in with Paramount Pictures' Tomb Raider film.

Sales for stores open at least a year at Pizza Hut increased 3%, while KFC sales grew 2%, continuing a positive trend for the fried chicken chain, but not as strong as its first-quarter boost of 3% -- KFC's best performance since the fourth quarter 1999.

The chains showed promise in their mid-April to mid-May period when each posted positive sales led by Pizza Hut with a 6% increase. However, Pizza Hut and Taco Bell sales dropped sharply in the following mid-May to mid-June period as Pizza Hut sales were down 1%, and Taco Bell sales fell 4%. KFC sales growth remained positive at 1% for the last four weeks of the quarter, due to a Spicy BBQ promotion. -- Kate MacArthur

Copyright June 2001, Crain Communications Inc.

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