half year results, page-16

It is a good point to not be too optimistic in relation to renewing of the agreements. There is risk there and investors should factor this risk in when investing by adjusting their terminal value calculation of the company. However, even in a worse case scenario it should be remembered that Collins Food does have the sizzler business and even if Yum didn’t renew the agreements (very unlikely in my opinion), they would still pay Collins Food some compensation.

In relation to Jack Cowin, he brought into Domino’s Pizza chain even though he agreed not to compete with Pizza Hut, a chain owned by Yum. This is the likely cause for Yum wanting to terminate their relationship. Yum gave Jack Cowin 8 years notice that the agreements would not be renewed, plenty of time to complete a sales process with a buyer Yum would consent to, however, he chose not to sell.