Pizza Hut 2001 Annual Report Download - page 4

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Dear Partners,
The usual course of action is for the chairman to start the
annual letter with a statement about all the progress the
company has made the past year. While 2001 was
definitely a winning year, I’m going to start by
making a point we think is even more important.
DEFINING REALITY Stepping back, even
our toughest critics would give us credit for our
marketing and product innovation. However, I want you
to know that we don’t think we’re nearly as good as we
should be at doing what matters most in our industry: running
great restaurants and making our customers happy.
If you were to look at our customer survey numbers, you
would see we rank in the middle to bottom tier on the basics, and last in
the attitude we convey regarding our commitment to customer satis-
faction. This is unacceptable and as you’ll read in this report, we are
bound and determined to do something about it. We began
making improvements in 2001 and we will not rest until we are
ranked number one by our customers.
Despite this significant opportunity, any way you look at it,
we’ve made a ton of progress since we became a public
company in October 1997. We’ve more than doubled our
ongoing operating earnings per share and increased our
ongoing operating profit at a 7% compound growth
rate. We’ve grown system sales 9% and opened
over 5,200 new restaurants, excluding license
restaurants, around the world. We also accom-
plished this while dramatically improving our
returns by refranchising, or selling, about
3,800 restaurants to our franchisees.
In 2001, we achieved our full year
ongoing operating earnings per share target by
turning in $3.21 per share in a very challenging
operating environment. When you look at our financials,
you’ll see all the numbers that should be going up are, in fact,
going up, and all the numbers that should be going down are going
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