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06
KFC is a franchise-led, emerging-market powerhouse.
With nearly 15,000 restaurants in 120 countries and
territories, the brand generated $16 billion in annual system sales and has grown operating profit over the last
three years at a 9% compound annual growth rate in constant currency. I’m thrilled to see KFC’s “Always
Original” positioning gaining momentum and being adopted globally, which I believe will lend further
strength to the brand.
Franchisees opened 85% of our 705 new international restaurants in 2015. Total system sales grew 11% in
emerging markets for the year, with particular strength in Russia and Central and Eastern Europe. In fact,
Russia has generated system-sales growth of at least 40% in each of the last four years. We have tremendous
potential in emerging markets, where we have a significant lead over the competition. I’m also encouraged
by our recent performance in developed markets, such as Australia, the U.S., and Japan. International
developed markets’ system sales grew 6% in 2015 and U.S. system sales grew 2%. These results reinforce my
confidence in the brand’s ability to drive sales going forward. We have an unbelievable ability to generate
meaningful growth in mature markets, where we have a long established presence. We are taking our global
brand identity and unifying that with local cultural insights to expand and grow our business all around the
world. We are 100% focused on our real, authentic and freshly prepared food and merging that with value
and innovation to drive results. On the international front we’ve enjoyed success with lunch and dinner box
meals. In the U.S. we recently introduced Nashville Hot Chicken. This is a spicy version of our crispy chicken,
inspired by one of Nashville’s most famous dishes. We’re excited about the possibility of this innovative
product finding its way into the system outside of the U.S.
The new-unit pipeline at KFC remains impressive. In KFC’s top 12
emerging markets, excluding China, we only have one restaurant
per million people today. With an aggregate population of 3 billion
people in these markets, think of the potential. Across the world
we have plans in place to grow sales and to build on the division’s
consistent operating profit growth performance. This year we expect at
least 675 new international restaurant openings and to grow operating
profit 11%, which includes a one percentage point benefit from the 53rd
operating week. I am confident KFC will continue to excel and reward
shareholders in the years to come.
15,000
NEARLY
RESTAURANTS WORLDWIDE
MELBOURNE, AUSTRALIA
NASHVILLE HOT CHICKEN