Pizza Hut 2009 Annual Report Download - page 3

David C. Novak
Chairman & Chief Executive Ofcer
Yum! Brands, Inc.
The substance starts with the power of Yum! Brands to deliver
consistently strong results, even in tough economic and
macro environments like we faced in 2009. That’s why I’m
especially pleased to report we achieved 13% Earnings Per
Share (EPS) growth, marking the eighth consecutive year that
we exceeded our annual target of at least 10% and achieved
at least 13%. We grew worldwide system sales 1% prior to
foreign currency translation and once again strengthened our
claim as the number one retail developer of units outside the
United States as we opened over 1,400 new restaurants, the
ninth straight year we’ve opened more than 1,000 new units.
We also improved our worldwide restaurant margins by 1.7
percentage points, and operating prots grew by 9% prior to
foreign currency translation and special items. For the rst time
we generated over $1 billion in net income and we generated
$1.4 billion of cash from operations. Importantly, we continued
to be an industry leader with Return On Invested Capital (ROIC)
of 20%. We achieved all of our goals with the exception of our
same store sales, driven in large part by a weak global economy,
signicant unemployment and consumer condence. However,
our overall performance proved once again the resilience of our
global portfolio of leading brands to deliver consistent double
digit EPS growth. As a result, our share price climbed 17% for
the full year. Over the longer term, we are gratied we have
returned nearly $8 billion to shareholders through dividends
and share repurchases since our spin-off from PepsiCo in 1997.
But the best thing about business is the unnished business.
And, I’m happy to tell you we are even more excited about the
opportunities we have to continue building shareholder value.
Our growth will continue to come from executing four powerful
and unique strategies.
Dear Partners,
Last year in this letter I laid out our future-back vision to be The Dening Global
Company that Feeds the World. I talked about how our goal is for Yum! Brands to lead
the way in dening how to truly build a superlative global company, a company that sets
the example others want to emulate. Given the fact we are powered by restaurant brands
that customers love around the world and already operate in over 110 countries and
territories with over 1 million team members, I believed then and even more so now that
we have everything it takes to make this goal a reality over time. As a matter of fact, we
are absolutely determined to get this done by building a famous recognition culture where
everyone counts, making our brands dynamic and vibrant everywhere, demonstrating
we are truly a company with a huge heart and delivering results again and again. As you
go through this report, my aim is to give you the substance behind our intentionality.
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