Pizza Hut 2014 Annual Report Download - page 6

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In 2015, we will invest heavily in digital and mobile
innovation to further enhance the Pizza Hut Home
Service customer experience and grow same-store
sales.
Before I move on to our other divisions, I want to
provide some details around a further write-down of
our investment in Little Sheep. We recorded a non-
cash Special Item net charge of $361 million in the
fourth quarter of 2014. Acquired in 2012, Little Sheep
has clearly fallen well below our expectations and
has not yet achieved unit-level economics necessary
to justify the expansion we had envisioned for this
concept. We have a small, dedicated team focused on
improving this business—and pending the outcome of
these eorts, we will evaluate our options with Little
Sheep later this year.
Despite our recent challenges, we wouldn’t trade our
position in China with any other restaurant company.
Our category-leading brands, combined with a rapidly
expanding consuming class, lead us to believe we
remain on the ground floor of growth in the world’s
fastest growing economy.
As of January 1, 2014, we combined our Yum!
Restaurants International and U.S. divisions into
three global brand divisions: KFC, Pizza Hut
and Taco Bell. China and India remain separate
divisions given their strategic importance and
enormous growth potential.
4