Pizza Hut 2006 Annual Report Download - page 44

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49
1934, as amended. The statements include those identified
by such words as “may,” “will,” “expect,” “project,” “antici-
pate,” “believe,” “plan” and other similar terminology. These
“forward-looking statements” reflect our current expectations
regarding future events and operating and financial perfor-
mance and are based upon data available at the time of
the statements. Actual results involve risks and uncertain-
ties, including both those specific to the Company and those
specific to the industry, and could differ materially from expec-
tations. Accordingly, you are cautioned not to place undue
reliance on forward-looking statements.
Company risks and uncertainties include, but are not
limited to, changes in effective tax rates; potential unfavorable
variances between estimated and actual liabilities; our ability
to secure distribution of products and equipment to our res-
taurants on favorable economic terms and our ability to ensure
adequate supply of restaurant products and equipment in our
stores; unexpected disruptions in our supply chain; effects
and outcomes of any pending or future legal claims involving
the Company; the effectiveness of operating initiatives and
marketing and advertising and promotional efforts; our abil-
ity to continue to recruit and motivate qualified restaurant
personnel; the ongoing financial viability of our franchisees
and licensees; the success of our refranchising strategy; the
success of our strategies for international development and
operations; volatility of actuarially determined losses and loss
estimates; and adoption of new or changes in accounting poli-
cies and practices including pronouncements promulgated by
standard setting bodies.
Industry risks and uncertainties include, but are not lim-
ited to, economic and political conditions in the countries
and territories where we operate, including effects of war and
terrorist activities; new legislation and governmental regula-
tions or changes in laws and regulations and the consequent
impact on our business; new product and concept develop-
ment by us and/or our food industry competitors; changes in
commodity, labor, and other operating costs; changes in com-
petition 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 preferences 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 countries in which we operate.