Pizza Hut 2001 Annual Report Download - page 8

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Given this exciting news, we’re asking our
shareholders to rename your company Yum! Brands,
Inc. The name better reflects our future direction and
reinforces our New York Stock Exchange ticker symbol
every time you see it. Even more importantly, the name
highlights the fun of our recognition culture and also
reinforces our Customer Mania passion to put a Yum on
our customers’ faces all around the world.
I hope I’ve given you a sense of the opportuni-
ties we have in both the United States and international
markets. As a shareholder, I want you to know the five
key measures we look at to gauge our performance:
HOW YOU SHOULD MEASURE US
1) International Expansion…we want to
add at least 1,000 new units and
grow our capability each year.
2) U.S. Blended Same Store Sales
Growth…we want to grow our
same store sales at least 2% per
year. Looking at our brand sales on a
blended basis recognizes we are a
portfolio and have the power of
diversification.
3) Multibranding Expansion…we want to add at least
350 units per year in the U.S.
4) Franchise Fees…we generate over $800 million in
franchise fees with minimal capital investment. We
expect to grow fees 4%-6% each year.
5) Return on Investment Capital…at 18%, we are a
leader in the quick service restaurant industry. We
expect to at least maintain our returns by driving at
least 15% margins on the stores we own and
exceeding our cost of capital with our investment.
We intend to
grow our ongoing operating EPS
at least 10% every year. If we can do better, we will, but
we’re focused on being a company you can count on for
at least 10% growth on a consistent basis.
UNMATCHED TALENT Let me close with the
single most important reason why you should be confi-
dent of your investment in Yum! There is no doubt in
my mind we have the best talent in the restaurant
industry — talent that is focused on building one of the
truly great companies in the world. Our leaders are
Customer Maniacs, know and drive the business
and know how to build and align teams.
Together, we are building a unique
customer and recognition culture
that is allowing us to retain and
recruit the very best. By building the
capability of our people, Customer
Mania will result and the profitability
that will make Yum! a great investment
will follow.
I’d like to thank our dedicated team members,
franchise partners, and outstanding Board of Directors
for their inspired ideas and commitment to customer
mania. We’re on our way!
YUM TO YOU!
6
David C. Novak
Chairman and Chief Executive Officer
YUM! Brands better describes our expanding
portfolio of brands. It better reflects our future
direction and reinforces our New York Stock
Exchange ticker symbol every time you see it. Even
more importantly, it reinforces our Customer Mania
passion to put a YUM on our customers’ faces all
around the world.
By building the
capability of our people,
Customer Mania will result
and the profitability that
will make Yum! a great
investment will follow.