Pizza Hut 2004 Annual Report Download - page 48

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CAUTIONARY฀STATEMENTS
From฀time฀to฀time,฀in฀both฀written฀reports฀and฀oral฀statements,฀
we฀present฀“forward-looking฀statements”฀within฀the฀meaning฀
of฀Section฀27A฀of฀the฀Securities฀Act฀of฀1933,฀as฀amended,฀
and฀ Section฀ 21E฀ of฀the฀ Securities฀ Exchange฀ Act฀of฀1934,฀
as฀ amended.฀ The฀ statements฀ include฀ those฀ identified฀ by฀
such฀words฀as฀“may,”฀“will,”฀“expect,”฀“project,”฀“anticipate,”฀
“believe,”฀“plan”฀and฀other฀similar฀terminology.฀These฀“forward-
looking฀statements”฀reflect฀our฀current฀expectations฀regarding฀
future฀events฀and฀operating฀and฀financial฀performance฀and฀
are฀based฀upon฀data฀available฀at฀the฀time฀of฀the฀statements.฀
Actual฀results฀involve฀risks฀and฀uncertainties,฀including฀both฀
those฀ specific฀ to฀ the฀ Company฀ and฀ those฀ specific฀ to฀ the฀
industry,฀and฀could฀differ฀materially฀from฀expectations.
Company฀risks฀ and฀ uncertainties฀ include,฀but฀are฀not฀
limited฀to,฀potentially฀substantial฀tax฀contingencies฀related฀
to฀ the฀ Spin-off,฀ which,฀ if฀ they฀ occur,฀ require฀ us฀ to฀ indem-
nify฀PepsiCo,฀Inc.;฀changes฀in฀effective฀tax฀rates;฀our฀debt฀
leverage฀and฀the฀attendant฀potential฀restriction฀on฀our฀ability฀
to฀ borrow฀ in฀ the฀ future;฀ potential฀ unfavorable฀ variances฀
between฀estimated฀and฀actual฀liabilities;฀our฀ability฀to฀secure฀
distribution฀of฀products฀and฀equipment฀to฀our฀restaurants฀on฀
favorable฀economic฀terms฀and฀our฀ability฀to฀ensure฀adequate฀
supply฀of฀restaurant฀products฀and฀equipment฀in฀our฀stores;฀
effects฀and฀outcomes฀of฀legal฀claims฀involving฀the฀Company;฀
the฀ effectiveness฀ of฀ operating฀ initiatives฀ and฀ advertising฀
and฀promotional฀efforts;฀the฀ongoing฀financial฀viability฀of฀our฀
franchisees฀and฀licensees;฀the฀success฀of฀our฀refranchising฀
strategy;฀volatility฀of฀actuarially฀determined฀losses฀and฀loss฀
estimates;฀and฀ adoption฀ of฀new฀ or฀ changes฀in฀accounting฀
policies฀and฀practices฀including฀pronouncements฀promulgated฀
by฀standard฀setting฀bodies.
Industry฀ risks฀ and฀ uncertainties฀ include,฀ but฀ are฀ not฀
limited฀to,฀economic฀and฀political฀conditions฀in฀the฀countries฀
and฀territories฀where฀we฀operate,฀including฀effects฀of฀war฀and฀
terrorist฀activities;฀changes฀in฀legislation฀and฀governmental฀
regulation;฀new฀product฀and฀concept฀development฀by฀us฀and/
or฀our฀food฀industry฀competitors;฀changes฀in฀commodity,฀labor,฀
and฀other฀operating฀costs;฀changes฀in฀competition฀in฀the฀food฀
industry;฀ publicity฀ which฀ may฀ impact฀ our฀business฀and/or฀
industry;฀severe฀weather฀conditions;฀volatility฀of฀commodity฀
costs;฀increases฀in฀minimum฀wage฀and฀other฀operating฀costs;฀
availability฀and฀cost฀of฀land฀and฀construction;฀consumer฀prefer-
ences฀or฀perceptions฀concerning฀the฀products฀of฀the฀Company฀
and/or฀our฀competitors,฀spending฀patterns฀and฀demographic฀
trends;฀political฀or฀economic฀instability฀in฀local฀markets฀and฀
changes฀in฀currency฀exchange฀ and฀interest฀rates;฀and฀the฀
impact฀that฀any฀widespread฀illness฀or฀general฀health฀concern฀
may฀have฀on฀our฀business฀and/or฀the฀economy฀of฀the฀coun-
tries฀in฀which฀we฀operate.
46