Pizza Hut 2005 Annual Report Download - page 35

Download and view the complete annual report

Please find page 35 of the 2005 Pizza Hut annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 82

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82

For฀2005฀and฀2004,฀Company฀multibrand฀unit฀gross฀additions฀
were฀373฀and฀384,฀respectively.฀For฀2005฀and฀2004,฀franchise฀
multibrand฀unit฀gross฀additions฀were฀171฀and฀169,฀respec-
tively.฀There฀are฀no฀multibrand฀units฀in฀the฀China฀Division.
SYSTEM฀SALES฀GROWTH
฀ ฀ ฀฀ Increase฀
฀฀ ฀ ฀฀ excluding฀
฀ ฀ ฀Increase฀ ฀currency฀฀
฀ ฀ excluding฀ translation฀฀
฀ ฀ currency฀ and฀฀
฀ Increase฀ translation฀ 53rd฀week
฀฀฀฀ 2005฀ 2004฀ 2005฀ 2004฀ 2005
United฀States฀ 5%฀ 3%฀ N/A฀ N/A฀ 4%
International฀Division฀ 9%฀ 14%฀ 6%฀ 6%฀ 5%
China฀Division฀ 13%฀ 23%฀ 11%฀ 23%฀ 11%
Worldwide฀ 7%฀ 8%฀ 6%฀ 5%฀ 5%
System฀sales฀growth฀includes฀the฀results฀of฀all฀restaurants฀
regardless฀ of฀ownership,฀including฀Company-owned,฀ fran-
chise,฀unconsolidated฀affiliate฀and฀license฀restaurants.฀Sales฀
of฀franchise,฀unconsolidated฀affiliate฀and฀license฀restaurants฀
generate฀franchise฀and฀license฀fees฀for฀the฀Company฀(typically฀
at฀a฀rate฀of฀4%฀to฀6%฀of฀sales).฀Franchise,฀unconsolidated฀
affiliate฀and฀license฀restaurants฀sales฀are฀not฀included฀in฀
Company฀sales฀on฀the฀Consolidated฀Statements฀of฀Income;฀
however,฀the฀franchise฀and฀license฀fees฀are฀included฀in฀the฀
Company’s฀revenues.฀ We฀ believe฀ system฀ sales฀ growth฀ is฀
useful฀to฀investors฀as฀a฀significant฀indicator฀of฀the฀overall฀
strength฀of฀our฀business฀as฀it฀incorporates฀all฀of฀our฀revenue฀
drivers,฀Company฀and฀franchise฀same฀store฀sales฀as฀well฀as฀
net฀unit฀development.
The฀increase฀in฀Worldwide฀system฀sales฀in฀2005฀and฀
2004฀was฀driven฀by฀new฀unit฀development฀and฀same฀store฀
sales฀growth,฀partially฀offset฀by฀store฀closures.
The฀increase฀in฀U.S.฀system฀sales฀was฀driven฀by฀same฀
store฀sales฀growth฀and฀new฀unit฀development,฀partially฀offset฀
by฀store฀closures.฀In฀2004,฀the฀increase฀in฀U.S.฀system฀sales฀
was฀driven฀by฀new฀unit฀development฀and฀same฀store฀sales฀
growth,฀partially฀offset฀by฀store฀closures.
The฀increase฀in฀International฀Division฀system฀sales฀in฀
2005฀and฀2004฀was฀driven฀by฀new฀unit฀development฀and฀
same฀store฀sales฀growth,฀partially฀offset฀by฀store฀closures.
In฀2005,฀the฀increase฀in฀China฀Division฀system฀sales฀
was฀driven฀by฀new฀unit฀development,฀partially฀offset฀by฀the฀
impact฀of฀same฀store฀sales฀declines฀driven฀by฀the฀mainland฀
China฀ supplier฀ ingredient฀ issue฀ and฀ consumer฀ concerns฀
related฀to฀Avian฀Flu.฀In฀2004,฀the฀increase฀in฀China฀Division฀
system฀sales฀was฀primarily฀driven฀by฀new฀unit฀development฀
and฀same฀store฀sales฀growth.
REVENUES
฀ ฀ ฀ ฀ %฀Increase฀
฀ ฀ ฀ ฀ (Decrease)฀฀
฀ ฀ ฀ ฀%฀Increase฀฀ excluding฀
฀ ฀ ฀ ฀(Decrease)฀฀ currency฀
฀ ฀ ฀฀ excluding฀ translation฀ ฀
฀ ฀ %฀Increase฀฀ currency฀ and฀53rd฀฀
฀ Amount฀ (Decrease)฀ translation฀ week
฀2005฀ 2004฀ 2005฀ 2004฀ 2005฀ 2004฀ 2005
Company฀sales
฀ United฀States฀ $฀5,294฀$฀5,163฀ 3฀ 2฀ N/A฀ N/A฀ 1
฀ International฀฀
฀ ฀ Division฀ ฀1,676฀ ฀1,747฀ (4)฀ 17฀ (8)฀ 11฀ (10)
฀ China฀Division฀ ฀1,255฀ ฀1,082฀ 16฀ 24฀ 14฀ 23฀ 14
฀ Worldwide฀ ฀8,225฀ ฀7,992฀ 3฀ 7฀ 2฀ 6฀ 1
Franchise฀and฀฀
license฀fees
฀ United฀States฀ ฀ 635฀ ฀ 600฀ 6฀ 4฀ N/A฀ N/A฀ 5
฀ International฀฀
฀ ฀ Division฀ ฀ 448฀ ฀ 381฀ 17฀ 14฀ 15฀ 7฀ 14
฀ China฀Division฀ ฀ 41฀ ฀ 38฀ 8฀ 25฀ 7฀ 25฀ 7
฀ Worldwide฀ ฀1,124฀ ฀1,019฀ 10฀ 8฀ 9฀ 6฀ 8
Total฀revenues
฀ United฀States฀ ฀5,929฀ ฀5,763฀ 3฀ 2฀ N/A฀ N/A฀ 2
฀ International฀฀
฀ ฀ Division฀ ฀2,124฀ ฀2,128฀ —฀ 17฀ (4)฀ 10฀ (5)
฀ China฀Division฀ ฀1,296฀ ฀1,120฀ 16฀ 24฀ 14฀ 24฀ 14
฀ Worldwide฀ $฀9,349฀$฀9,011฀ 4฀ 8฀ 3฀ 6฀ 2
In฀ 2005,฀ the฀ increase฀ in฀ Worldwide฀ Company฀ sales฀ was฀
driven฀by฀new฀unit฀development฀and฀same฀store฀sales฀growth,฀
partially฀offset฀by฀refranchising฀and฀store฀closures.฀In฀2004,฀
the฀increase฀in฀Worldwide฀Company฀sales฀was฀driven฀by฀new฀
unit฀development,฀acquisitions฀of฀franchisee฀restaurants฀and฀
same฀store฀sales฀growth,฀partially฀offset฀by฀refranchising฀
and฀store฀closures.
In฀2005,฀the฀increase฀in฀Worldwide฀franchise฀and฀license฀
fees฀was฀driven฀by฀new฀unit฀development,฀same฀store฀sales฀
growth฀and฀refranchising,฀partially฀offset฀by฀store฀closures.฀
In฀2004,฀the฀increase฀in฀Worldwide฀franchise฀and฀license฀
fees฀was฀driven฀by฀new฀unit฀development,฀same฀store฀sales฀
growth,฀and฀refranchising,฀partially฀offset฀by฀store฀closures฀
and฀acquisitions฀of฀franchisee฀restaurants.
In฀2005,฀the฀increase฀in฀U.S.฀Company฀sales฀was฀driven฀
by฀ same฀ store฀ sales฀ growth฀ and฀ new฀ unit฀ development,฀
partially฀offset฀by฀refranchising฀and฀store฀closures.฀In฀2004,฀
the฀increase฀in฀U.S.฀Company฀sales฀was฀driven฀by฀new฀unit฀
development฀and฀same฀store฀sales฀growth,฀partially฀offset฀by฀
refranchising฀and฀store฀closures.
U.S.฀same฀store฀sales฀includes฀only฀Company฀restau-
rants฀that฀have฀been฀open฀one฀year฀or฀more.฀U.S.฀blended฀
same฀ store฀ sales฀ includes฀ KFC,฀ Pizza฀Hut฀ and฀ Taco฀Bell฀
Yum!฀Brands,฀Inc.฀ ฀ ฀ |฀ ฀ ฀ 39.