Pizza Hut 2008 Annual Report Download - page 4

Now I also know this all could sound like a pipe dream if you didn’t have
a track record and the resources to achieve it. So I’m pleased to report
that our condence that we can achieve such a bold goal stems from the
substance I will share with you in this report and begins with a track record
of doing what we say, or as I like to say at Yum!, walking the talk.
That’s why I’m especially humbled to tell you on behalf of our dedicated
teams and franchisees around the world, that we achieved 14% Earnings
Per Share (EPS) growth for 2008. That’s the seventh straight year we’ve
achieved at least 13% growth and once again exceeded our +10% annual
EPS growth target. In so doing, we grew worldwide system sales +7%
and same store sales +3%, contributing to what is now 21 consecutive
quarters of same store sales growth. Perhaps even more importantly, we
strengthened our claim as the number one retail developer of new units
outside the United States by opening a record 1,495 units, the eighth
straight year we’ve opened more than 1,000 new units. With this quality
growth, we generated cash from operations of over $1.5 billion and returned
an all time high of nearly $2 billion to our shareholders through share
repurchases and dividends. I’m especially pleased we achieved these results
in a year tainted by unprecedented commodity ination, a slowing economy,
declining consumer condence and the collapse of the nancial markets.
Performance in tough times like these reinforces the underlying power of
our global portfolio of leading brands to deliver consistent double digit EPS
growth because of their universal appeal, convenience and affordability.
Nevertheless, our stock took a tumble like the rest of the market, declining
21% in 2008 although we signicantly outperformed the broader market as
measured by the S&P 500 which was down 41%.
Stepping back, over the past decade we have truly become a global company
with 55% of our total revenue and nearly 60% of our operating prots coming
from outside the United States, versus 24% of total revenue and 20% of
operating prot when we started our company in 1997. When we combine
this with the inarguable fact that we operate in more than 110 countries,
have over one million team members and have such recognized brands,
we believe we are in the scalable and enviable position to build a global
company that sets the standard for others to follow which is to become
The Dening Global Company that Feeds the World.
to Us tHis means continUing to bUild and create: