Pizza Hut 2015 Annual Report Download - page 7

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07
At Pizza Hut U.S., which generates
about 60% of the division’s operating profit,
we are starting to turn the corner with our
focused emphasis on “making it easier to
get a better pizza.” This runs the gamut from
improved operations and insight-driven food
innovation to digital enhancements and consistent
value. While we recognize there is a lot more work
to do, we’re now generating positive momentum
with same-store sales growth.
Equally significant, we reached an important agreement
with our U.S. franchisees. Starting in January, we and
our franchisees began an overhaul of Pizza Hut’s assets,
replacing ovens and upgrading in-store technology. From a
marketing calendar perspective, we are focused on a balanced
approach. You may have seen the launch of our $5 Flavor Menu,
the most compelling value menu in the pizza business. In conjunction with our ongoing $6.99 Any Pairs deal
it provides our customers with great value on an ongoing basis. Simultaneously, we are offering premium-
priced innovation, such as our recent launch of the Stuffed Garlic Knots Pizza, to protect and improve
unit-level economics.
Our international business at Pizza Hut is led by strength
in emerging markets but offset by weakness in some
developed markets. We believe we can apply best
practices from the U.S. business to drive growth in
these developed markets going forward. In 2016
we expect to open at least 525 new international
restaurants. We also expect to grow operating
profit 7% in constant currency, which includes
a two percentage point benefit from the 53rd
operating week.
525
STUFFED GARLIC KNOTS PIZZA
NEW PIZZA HUT U.S. DESIGN
NEW INTERNATIONAL
RESTAURANT OPENINGS
PROJECTED IN 2016