Pizza Hut 2005 Annual Report Download - page 8
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Please find page 8 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.While we have thousands of outstanding restau-
rant general managers and pockets of excellence
in countries likeChina and Australia, this isa big
opportunityforusbecausewehavesomuchupside
bysimplyexecutingbetter.
On average, our customers are telling us we are giv-
ingthema100%CHAMPSexperienceonly53%ofthe
time (the same as last year). CHAMPS stands for the
executional basics (Cleanliness, Hospitality, Accuracy,
Maintenance,ProductQualityandSpeed).Anytimewefail
todeliveronanyoneofthesedimensions,we’reletting
ourcustomersdown.Theflipsideisanytimewedeliverall
thebasicsweendupwithsatisfiedcustomersandthat
alwaysleadstomore salesand profits.That’swhywe
continuetofocusonCustomerMania,oursinglebiggest
globalinitiative.CustomerManiaisdefinedasdelivering
ourcustomers100%CHAMPSwitha“Yes”attitudeevery
singletime.We’vemadeprogressbyinvestingmorein
management and team member training, new point of
saleand backofhousesystems,but werecognize we
arenotimprovingfastenough.Weknowhowmuchmore
moneycanbemadeifwemovefromourcurrentstateof
mediocrityfromgoodtogreat.Icanassureyouourentire
organizationisfixatedonbeingthebestrestaurantopera-
torsinourindustry.
OPERATIONS KEY MEASURES: 100% CHAMPS WITH A “YES”
ATTITUDEIN EVERYSTOREANDSAMESTORE SALES GROWTH IN
EVERYSTORE.
Goingforward,wecontinuetobegalvanizedaround
buildingwhatwecalltheYum!Dynastywiththeresult
beingoneoftheworld’smostconsistentandhighest
performingcompanies.Onthenextpage,youcansee
theroad mapwe’velaid outfordynasty-likeperfor-
mance, along with handwritten comments I always
includeinmyNewYear’slettertorestaurantteams.
Ithinkitisimportantforyoutoknowhowmuchwebelieve
inthegrowthpotentialofourcorebusiness.Wearecon-
fident the opportunities I’vediscussedwillallow us to
growearningspershareatleast10%peryearforyears
tocome.Giventhetremendoussuccesswe’veachieved
andthecashflowwearegenerating,wehaveastrong
balancesheetandtheclearcapabilitytomakeacquisi-
tions.Asyouwouldexpect,we’velookedatanumberof
opportunities.Anyacquisitionwewouldmakewouldhave
toaccelerateourgrowthrateintheU.S.and/orleverage
ourinternationalinfrastructure.WhileI’dneversaynever,
Iwillsaythere’sslimpickingforthosekindsofopportuni-
ties.We’requitecomfortableinvestinginthecoregrowth
ofourexistingbrandsaroundtheworldandcontinueto
increaseshareholderpayoutthroughsharerepurchases
anddividends.
I also think it’s important for you to know that we
believethesinglebiggestcompetitiveadvantagewehave
istheglobalculturewehavecreated.It’sahighenergy,
peoplecapabilityfirstenvironmentthatiscenteredonspir-
itedrecognitionthatdrivesperformance.It’sallowingusto
retainandrecruitthebestandthebrightest.Andit’sallow-
ingustobuildprocessanddisciplinearoundthethings
thatreallymatterinourrestaurantsandatoursupport
centers.Wearesharingourbestpracticesandgettingbet-
terandbettereveryyear.Believeme,weknowthereisso
muchmoretodoandthefunwillbeindoingit!
I’dliketothankourdedicatedteammembers,res-
taurant managers,franchisepartnersandoutstanding
Board of Directors. I would also like to welcome Tom
Nelsonasournewestboardmember.Andmostofall,I’d
liketothankmybelovedpartnerandthegreatestleader
I’veeverhadtheprivilegetoworkwith,AndyPearson,our
foundingChairman,whopassedawayinMarch2006.We
wouldnotbethecompanywearetodaywithouthispas-
sion,wisdomandinspiration.Hewillbemissedbyalland
hisspiritwillliveoninourcommitmenttoexcellence.
Wehaveaworldofopportunityaheadofus.Ihope
youagreeweareanythingbutyourordinaryrestaurant
company.
Yum!toYou!
DavidC.Novak
ChairmanandChiefExecutiveOfficer
#4RunGreat
Restaurants
6. | Yum!Brands,Inc.