Pizza Hut 2012 Annual Report Download - page 11

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Our success executing our strategies has driven
our Return on Invested Capital to 22%, placing us
among industry leaders. We generated almost $2.3
billion in cash from operations in 2012. As I hope I’ve
conveyed in this letter, we’re fortunate to have many
high-return, long-term growth opportunities. We
are also fortunate to have a strong investment grade
balance sheet and all the capital we need to grow our
core business. At the same time, in addition to buying
back stock ($985 million in 2012), we are paying
shareholders a solid dividend that has increased
at a double-digit rate the past 8 years.
Importantly, we are improving returns by executing
our strategy of reducing ownership in highly
penetrated markets like Pizza Hut UK and increasing
our exposure in emerging and under-penetrated
markets. We also build company units or increase
our ownership in international markets where we
can achieve scale, realize high growth and yield high
returns. Our investments in India and past acquisitions
in Russia (2010) and South Africa (2011) are great
examples of this strategy. Along these lines, as we
entered 2013, we agreed on terms to acquire the
operations of our franchise partner in Turkey, a high-
growth emerging market that has over 100 KFC and
Pizza Hut restaurants.
Drive industry-leading, long-term
shareholder and franchisee value.
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