Pizza Hut 2006 Annual Report Download - page 3

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Fueled by continued profitable international expansion, dynamic growth
in China, and our strong and stable U.S. cash generation, I’m pleased
to report we achieved 14% Earnings Per Share (EPS) growth in 2006.
That’s the fifth straight year we’ve exceeded our +10% annual target,
proving the underlying power of our global portfolio of leading brands
enables us to deliver consistent double-digit EPS growth. We also dem-
onstrated our global growth by opening over 1,000 new restaurants
outside of the U.S. for the sixth straight year in a row — 1,181 to be
precise. What’s more, we are a proven global cash flow generator, provid-
ing major shareholder payouts. Specifically, after investing $614 million
in capital expenditures to grow our core business, we returned our
free cash flow to shareholders with $1 billion in share repurchases —
reducing our shares outstanding by 6%—and a 1% dividend yield (a
total shareholder payout of 7% when considering dividends and reduc-
tion in outstanding shares). Given this overall strong performance, our
share price climbed 25% for the full year, and we’re especially gratified
that our average annual return to shareholders is 15% for this decade.
More importantly, we remain bullish about the future and are confident
that we will continue to grow our EPS at least 10% each year. We have
four powerfully unique strategies that bolster the sentiment that we
are Not Your Ordinary Restaurant Company. Here’s how we’re going for
greatness around the globe:
Dear Partners,
Our internal rallying cry is to go
for greatness around the globe,
and while we have our challenges,
I think you’ll see from this report
that we are well on our way with
a long runway ahead of us.
Not Your Ordinary
Restaurant Company!
David C. Novak
Chairman and Chief Executive Officer,
Yum! Brands, Inc.
With 14% Earnings Per Share (EPS) growth in 2006,
we’ve exceeded our +10% annual target for the fifth
straight year, proving the underlying power of our global
portfolio of leading brands delivers consistent growth!
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