Pizza Hut 2011 Annual Report Download - page 6

Given our past strategic investments, as I mentioned earlier, we not only
have the China opportunity, we have a whole lot more. A case in point is
we have made incredible progress in India, opening 101 new restaurants in
2011. Ten years ago, we were essentially just beginning with KFC in India,
and now it’s our second leading country for new unit development. In fact,
we’re so excited about our prospects in India, and its impact on the future
growth of Yum!, that we’re going to break it out as a separate division for
2012 reporting directly to me. It’s encouraging to see that our new unit
progress with KFC in India is very similar to what we saw in China during
its first 10 years. Our India team has identified the key elements driving
success in China and are adapting these strategies in India to leverage
our iconic brands and build concepts with broad appeal. While we don’t
expect meaningful profit contributions from India in 2012, we are laying
the foundation for this business to have a significant impact on Yum!’s
profit growth in the future.
We also made stellar progress in Russia, where we’re in the process of
re-branding Rostiks-KFC restaurants to stand-alone KFCs…and same
store sales growth in Russia is the best in our business. We know our
primary competitor makes over $300 million in Russia. We’re just getting
started and we have put in place a strong Russian leadership team that
is beginning to execute a series of initiatives that will build a powerful
business for the long term.
We are driving major growth in the continent of Africa, building off our
base of 656 stores in South Africa. We entered Zambia, Ghana and Kenya
in 2011 and plan to enter 7 new countries in 2012, in addition to expanding
our equity presence and adding new units in South Africa. In all, we plan
to have restaurants in about 20 African countries by the end of this year.
With over a billion people throughout the continent, we know we’re just
getting started.
101
New restaurants in India in 2011.
We’re re-branding Rostiks-KFC
restaurants in Russia to KFCs.
We plan to have restaurants in
20 African countries by the end
of this year.
EMERGING MARKETS
2 Restaurants Per 1,000,000 People
UNITED STATES
58 Restaurants Per 1,000,000 People
Just to illustrate the fact we are on the ground floor in emerging markets, consider my
favorite Yum! factoid: We have about 58 Yum! restaurants per million people in the U.S.
and only have fewer than 2 restaurants per million people in the top 10 emerging markets.
While many companies have to scratch and claw for growth opportunities, we already
have in our grasp a long runway for growth.
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