020110 Back Yard Burgers in Development Deal With TriconJanuary 7, 2002Memphis, TN. - Back Yard Burgers, Inc. that the company entered a Development Agreement with Tricon Global Restaurants, Inc. Under the terms of the Development Agreement, Back Yard Burgers granted Tricon the right to use the Back Yard Burgers trademarks in the United States in connection with the establishment and operation of up to ten Back Yard Burgers outlets as part of multi-brand units with Taco Bell, Pizza Hut and/or KFC operations. It is anticipated that the first ten outlets will be constructed and opened by 2003. The Development Agreement also grants to Tricon an option to co-brand up to 500 additional restaurants within certain geographic areas if the development schedule for the initial ten outlets is being met. A limited menu has been developed for these co-branded outlets, and the outlets are to be constructed and operated consistent with Back Yard Burgers' standards. The Taco Bell, Pizza Hut and/or KFC signage and imaging at the multi-brand outlets is to be predominant, although brand imaging will be reasonably obvious and balanced. As of January 7, 2002, Back Yard Burgers' restaurant system comprised 104 units, including 37 company-operated stores and 67 franchised stores. Expansion plans for 2002 include seven company-operated stores and eight or more franchised stores as well as six or more co-branded outlets. Back Yard Burgers operates and franchises quick-service restaurants in Memphis, Little Rock, Nashville and other markets across 17 states. The restaurants specialize in charbroiled, freshly prepared, great-tasting food. As its name implies, Back Yard Burgers strives to offer the same high-quality ingredients and special care typified by outdoor grilling in the backyard. Its menu features made-to-order gourmet Black Angus hamburgers and chicken sandwiches - charbroiled over an open flame, fresh salads, chili and other specialty items, including hand-dipped milkshakes, fresh-made lemonade and fresh-baked cobblers. Tricon is the world's largest restaurant company in terms of system restaurants with over 30,000 restaurants around the world in over 100 countries and territories. Tricon's three brands, KFC, Pizza Hut and Taco Bell, are the global leaders of the chicken, pizza and Mexican restaurant categories, respectively. Total worldwide system sales were over $22 billion in 2000. This press release contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the number of company-operated, franchised and co-branded restaurants the company anticipates opening during 2002. There are certain important factors that could cause actual results to differ materially from those anticipated by the statements made herein. Among the factors that could cause actual results to differ from predicted or expected results are: failure to meet the development schedule provided for in the Development Agreement with Tricon; delays in opening new stores because of weather, local permitting or other reasons; increased competition; cost increases or shortages in raw food products; and the possibility of unforeseen events affecting the industry generally. The forward-looking statements reflect management's current expectations. The company undertakes no obligation to publicly release revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required to be reported under the rules and regulations of the Securities and Exchange Commission.
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