Pizza Hut 2015 Annual Report Download - page 3

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03
In 2015 EPS excluding Special Items grew to $3.18 per share,
or 3%, despite a 7% decline in the first half of the year.
With restaurants in over 130 countries and territories we have
foreign exchange exposure from the impact of translating our
foreign profits from local currencies into U.S. dollars. In 2015
we had six percentage points of foreign currency headwinds.
Excluding these currency headwinds full-year EPS grew 9%
despite lower than expected sales in our China division.
While 2015 EPS was below our initial expectations, I was
pleased with the sales momentum we generated across
the majority of Yum! in the fourth quarter and look
forward to building on this in 2016.
YUM! CHINA
FOCUSED CHINA INVESTMENT
STRONG NATIONAL APPEAL
MAJOR GROWTH POTENTIAL
TARGET APPROXIMATELY 15%
ANNUAL ONGOING EPS GROWTH
NEW YUM!
FOCUSED, HIGH MARGIN,
GLOBAL FRANCHISE COMPANY
MAJOR GLOBAL GROWTH
TARGET APPROXIMATELY
15% ANNUAL ONGOING
SHAREHOLDER RETURN
GREG CREED
ONE PLUS
ONE IS GREATER
THAN TWO
For the full year our brand divisions collectively grew operating profit 8% in constant currency, which is
in-line with our ongoing growth model target. This was led by 12% operating profit growth at Taco Bell – a
remarkable result given the significant investments we made in the fourth quarter to position the brand for
continued momentum and category leadership for years to come. Operating profit grew 8% in constant
currency in China, with impressive cost management partially offsetting weaker than originally anticipated
sales results.
In 2015 worldwide system sales grew 5% in constant currency, which included increases of 8% at Taco Bell,
7% at KFC, 2% at Pizza Hut and 2% in China. Same-store sales growth was positive across all three of our
brand divisions, with Taco Bell at 5%, KFC at 3% and Pizza Hut at 1%. China’s same-store sales declined 4%
in 2015 but we have plans to return both KFC China and Pizza Hut Casual Dining to positive growth in 2016.
We opened 2,365 new restaurants globally in 2015. This year we expect to open nearly 2,400 new restaurants,
which means we’re opening over 6 new restaurants a day, laying the groundwork for future growth. Given
the plans we have laid out for each of the divisions, we’re confident in our ability to deliver 10% operating
profit growth in constant currency in 2016, which includes the benefit of a 53rd operating week for part of our
brand divisions.
CHIEF EXECUTIVE OFFICER
YUM! BRANDS, INC.