Pizza Hut 2001 Annual Report Download - page 35

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33
INTERNATIONAL RESTAURANT UNIT ACTIVITY
Unconsolidated
Company Affiliates Franchisees Licensees Total
Balance at Dec. 25, 1999 1,997 1,178 6,304 309 9,788
New Builds 227 108 594 21 950
Refranchising (85) (9) 94 — —
Closures (55) (53) (210) (40) (358)
Other(a) (263) 620 (357) — —
Balance at Dec. 30, 2000 1,821 1,844 6,425 290 10,380
New Builds 338 150 553 8 1,049
Acquisitions 225 (28) (195) (2) —
Refranchising (78) (20) 98 — —
Closures (88) (39) (325) (50) (502)
Other(a) (67) 93 (26) — —
Balance at Dec. 29, 2001 2,151 2,000 6,530 246 10,927
% of Total 20% 18% 60% 2% 100%
(a) Primarily includes 320 Company stores and 329 franchisee stores contributed to an unconsolidated affiliate in 2000 and 52 Company stores and 41 franchisee stores con-
tributed to an unconsolidated affiliate in 2001.
INTERNATIONAL SYSTEM SALES
System sales increased approximately $87 million or 1% in 2001,
after a 7% unfavorable impact from foreign currency translation.
Excluding the unfavorable impact of foreign currency translation
and lapping the fifty-third week in 2000, system sales increased
9%. The increase was driven by new unit development and same
store sales growth, partially offset by store closures.
System sales increased $399 million or 6% in 2000, after
a 2% unfavorable impact from foreign currency translation.
Excluding the unfavorable impact of foreign currency translation
and the favorable impact of the fifty-third week, system sales
increased 7%. This increase was driven by new unit development
and same store sales growth, partially offset by store closures.
INTERNATIONAL REVENUES
Company sales increased $79 million or 5% in 2001, after a 5%
unfavorable impact from foreign currency translation. Excluding
the unfavorable impact of foreign currency translation and lap-
ping the fifty-third week in 2000, Company sales increased
11%. The increase was driven by new unit development and
acquisitions of restaurants from franchisees. The increase was
partially offset by the contribution of Company stores to new
unconsolidated affiliates.
Company sales decreased $74 million or 4% in 2000, after
a 3% unfavorable impact from foreign currency translation.
Excluding the unfavorable impact of foreign currency transla-
tion and the favorable impact of the fifty-third week, Company
sales decreased 2%. The decrease was primarily due to refran-
chising, the contribution of Company stores to an unconsolidated
affiliate and store closures. The decrease was partially offset by
new unit development and same store sales growth.
Franchise and license fees increased $16 million or 6% in
2001, after a 6% unfavorable impact from foreign currency
translation. Excluding the unfavorable impact of foreign currency
translation and lapping the fifty-third week in 2000, franchise
and license fees increased 13%. The increase was driven by new
unit development, same store sales growth and units con-
tributed to unconsolidated affiliates. The increase was partially
offset by store closures.
Franchise and license fees increased approximately $31 mil-
lion or 14% in 2000, after a 3% unfavorable impact from
foreign currency translation. Excluding the unfavorable impact
of foreign currency translation and the favorable impact from
the fifty-third week, franchise and license fees increased 16%.
The increase was driven by new unit development, units
acquired from us and same store sales growth. The increase was
partially offset by store closures.
INTERNATIONAL COMPANY RESTAURANT MARGIN
2001 2000 1999
Company sales 100.0% 100.0% 100.0%
Food and paper 36.9 36.5 36.0
Payroll and employee benefits 19.1 19.5 21.0
Occupancy and other operating expenses 30.1 28.9 28.6
Company restaurant margin 13.9% 15.1% 14.4%
Restaurant margin as a percentage of sales decreased approxi-
mately 120 basis points in 2001. This decrease was primarily
attributable to higher operating costs and the acquisition of
below average margin stores from franchisees. The decrease
was partially offset by favorable pricing and product mix.
Restaurant margin as a percentage of sales increased 65
basis points in 2000. The increase was primarily attributable to
the favorable impact of refranchising, the contribution of
Company stores with below average margins to a new uncon-
solidated affiliate and store closures.