Pizza Hut 2015 Annual Report Download - page 128

Download and view the complete annual report

Please find page 128 of the 2015 Pizza Hut annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 186

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186

YUM! BRANDS, INC.-2015 Form10-K20
Form 10-K
PART II
ITEM7Management’s Discussion and Analysis of Financial Condition and Results of Operations
China Division
The China Division has 7,176 units, predominately KFC and Pizza Hut Casual Dining restaurants which are the leading quick service and casual dining
restaurant brands, respectively, in mainland China. Given our strong competitive position, a growing economy and a population of approximately 1.4billion
in mainland China, the Company has rapidly added KFC and Pizza Hut Casual Dining restaurants and accelerated the development of Pizza Hut Home
Service (home delivery). For 2015, China Division targeted mid-single-digit same-store sales growth, moderate margin improvement, at least 700 new
unit openings and Operating Profit growth of at least 15%.
% B/(W) % B/(W)
2015 2014
2015 2014 2013 Reported Ex FX Reported Ex FX
Company sales $ 6,789 $ 6,821 $ 6,800 — 1 — 1
Franchise and license fees and income 120 113 105 7 9 7 7
Total revenues $ 6,909 $ 6,934 $ 6,905 — 2 — 1
Restaurant profit $ 1,077 $ 1,009 $ 1,050 7 9 (4) (4)
Restaurant margin % 15.9% 14.8% 15.4% 1.1 ppts. 1.0 ppts. (0.6) ppts. (0.6) ppts.
G&A expenses $ 397 $ 391 $ 357 (2) (3) (9) (9)
Operating Profit $ 757 $ 713 $ 777 6 8 (8) (8)
2015 2014
System Sales Growth, reported —% 1%
System Sales Growth, excluding FX 2% 1%
Same-Store Sales Growth (Decline) % (4)% (5)%
% Increase
(Decrease)
Unit Count 2015 2014 2013 2015 2014
Company-owned 5,768 5,417 5,026 6 8
Unconsolidated Affiliates 796 757 716 5 6
Franchise & License 612 541 501 13 8
7,176 6,715 6,243 7 8
2014 New Builds Closures Refranchised Acquired Other 2015
Company-owned 5,417 636 (198) (90) 3 — 5,768
Unconsolidated Affiliates 757 58 (15) — — (4) 796
Franchise & License 541 49 (69) 90 (3) 4 612
Total 6,715 743 (282) — — — 7,176
2013 New Builds Closures Refranchised Acquired Other 2014
Company-owned 5,026 664 (195) (79) 1 — 5,417
Unconsolidated Affiliates 716 56 (14) — — (1) 757
Franchise & License 501 17 (56) 79 (1) 1 541
Total 6,243 737 (265) — — — 6,715