Pizza Hut 2013 Annual Report Download - page 13
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U.S.
Our U.S. business is on a path for consistent growth, led by Taco Bell, which
represents approximately two-thirds of our U.S. profits. Taco Bell delivered
another solid year in 2013 with the fourth-quarter representing the eighth
consecutive quarter of same-store sales growth.
I’m extremely proud of Taco Bell CEO Greg Creed and his team for being
named Advertising Age’s Marketer of the Year in recognition of our Live
Más campaign. More importantly, Taco Bell was the only restaurant
company to receive top tier rankings from QSR Magazine’s independent
customer survey on three key operational measures: speed, accuracy and
hospitality. Greg has done a sensational job leading the way.
We expect some truly innovative products to wow customers in 2014, but
the big news for Taco Bell will be the national launch of breakfast. We have
three terrific destination breakfast products at incredible price points.
Our economic model at Taco Bell remains strong with restaurant level
margins over 19%. With the strength of these unit economics, we are
seeing an acceleration of new unit development, with 86 net-new units in
2013 and an even better development pipeline heading into 2014. We’re
confident in our ability to achieve our goal of going from about 5,300 Taco
Bell restaurants to at least 8,000 in the U.S.
The combination of innovation and strong operational capability gives us
confidence Taco Bell will eventually become our third global brand.
At Pizza Hut, we are pleased we opened 116 net new units this year,
our third consecutive year of positive net-unit growth. However, we
significantly lagged our competitors in same-store sales as we simply
weren’t competitive enough on value. We are aligning with our franchisees
to tackle this issue and bring even more innovation to the marketplace. In
2014, we expect to fare much better with competitive value and our plan
to nationally advertise WingStreet for the first time, featuring our award-
winning kitchen fried wings and eventually chicken strip meals.
KFC also under-performed in the U.S. in 2013, but we have
exciting new product innovations and more compelling value
planned to improve our performance in the growing chicken
category.
We clearly have some catch-up work to do in the U.S. versus
the competition for both Pizza Hut and KFC, and intend to
make significant progress in 2014. All in all, the momentum at
Taco Bell, net new unit openings, and the fact our refranchising
program has been largely completed, puts us on a path for
consistent growth in the U.S.
NEW INTERNATIONAL
UNITS IN 2013
ÁS
11