Pizza Hut 2012 Annual Report Download - page 3

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13%
EPS Growth*
+5%
System Sales Growth**
$1.6 billion
Net Income
+18%
Increased Dividend
$1.34
Annual Dividend
Per Share Rate
+1,976
Units***
David C. Novak
Chairman & Chief Executive Officer,
Yum! Brands, Inc.
*Excluding special items
**Prior to foreign currency translation
***Outside the U.S.
Dear Partners,
I’m pleased to report that in 2012 we delivered full-year EPS
growth of 13% or $3.25 per share, excluding special items,
marking the eleventh consecutive year we achieved at least
13% and exceeded our annual target of at least 10%. This kind
of consistent performance puts us in an elite group of high-
growth companies.
We set a new record for international development by opening
nearly 2,000 new restaurants in 2012. We also grew worldwide
system sales 5% and operating profit 12%, both prior to foreign
currency translation and special items. We generated $1.6 billion
in net income and almost $2.3 billion in cash from operations. And
with our disciplined approach to capital deployment, we remained
an industry leader with a Return on Invested Capital of 22%. Our
strong cash flow generation allowed us to increase our dividend
rate 18%, to an annual rate of $1.34 per share. Our share price
increased 13% for the full year, on top of 20% in 2011. Looking
back, we are extremely proud that our five year average annual
shareholder return, including stock appreciation and dividend
reinvestment, is 14% versus the S&P 500 average of 2%.
We are proud of our track record of consistency which we believe
is a result of getting better and better at executing the same
growth strategies we identified over a decade ago. So as tempting
as it might be to unveil some new revolutionary thinking that will
drive our company’s growth, I have to admit my message this year
might be a bit boring: we’re simply going to STAY THE COURSE
with our strategies to build the defining global company that feeds
the world.
Yet when I step back and think about it, I’ve
concluded and hope you agree, staying the course
is actually good news for you as a long-term
shareholder. For you see, we don’t have to dream
up a dramatic new approach or totally revamp our
business model because the strategies we have
are working.
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