Pizza Hut 2005 Annual Report Download - page 36
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Please find page 36 of the 2005 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.Company-ownedrestaurantsonly.U.S.samestoresalesfor
LongJohnSilver’sandA&Wrestaurantsarenotincluded.
Followingarethesamestoresalesgrowthresultsbybrand:
Same Average
Store Guest
2005 Sales Transactions Check
KFC 6% 5% 1%
PizzaHut —% (5)% 5%
TacoBell 7% 3% 4%
Same Average
Store Guest
2004 Sales Transactions Check
KFC (2)% (4)% 2%
PizzaHut 5% 2% 3%
TacoBell 5% 3% 2%
In 2005 and 2004, blended Company same store sales
increased 4% and 3%, respectively, due to increases in
averageguestcheckandtransactions.
In2005and2004,theincreaseinU.S.franchiseand
license fees was driven by new unit development, same
store sales growth and refranchising,partially offset by
storeclosures.
In2005,thedecreaseinInternationalDivisionCompany
sales was driven by refranchising (primarily our Puerto
Ricobusiness)andstoreclosures,partiallyoffsetbynew
unit development. In 2004, the increase in International
DivisionCompanysaleswasdrivenbyacquisitionsoffran-
chisee restaurants (primarily cer tain units in Canada we
nowoperate),newunitdevelopmentandsamestoresales
growth,partiallyoffsetbyrefranchisingandstoreclosures.
In2005,theincrease inInternational Divisionfran-
chiseandlicensefeeswasdrivenbynewunitdevelopment,
refranchising (primarily our Puerto Rico business), and
royaltyrateincreases.In2004,theincreaseinInternational
Divisionfranchiseandlicensefeeswasdrivenbynewunit
development,samestoresalesgrowthandrefranchising,
partiallyoffsetby storeclosures andouracquisitionsof
franchiseerestaurants(primarilycertainunitsinCanada
whichwenowoperate).
In2005,theincreaseinChinaDivisionCompanysales
wasdrivenbynewunitdevelopment,partiallyoffsetbythe
impactofsamestoresalesdeclinesdrivenbythemainland
China supplier ingredient issue and consumer concerns
relatedtoAvianFlu.In2004,theincreaseinChinaDivision
Companysales was driven by new unitdevelopment and
samestoresalesgrowth.
In2005,theincreaseinChinaDivisionfranchiseand
licensefeeswasdrivenbynewunitdevelopment,partially
offsetbytheimpactofsamestoresalesdeclinesdrivenby
themainlandChinasupplieringredientissueandconsumer
concernsrelatedtoAvianFlu.In2004,theincreaseinChina
Divisionfranchiseandlicensefeeswasprimarilydrivenby
newunitdevelopment.
COMPANYRESTAURANTMARGINS
Inter-
national China
2005 U.S. Division Division Worldwide
Companysales 100.0% 100.0% 100.0% 100.0%
Foodandpaper 29.8 33.1 36.2 31.4
Payrollandemployee
benefits 30.2 24.1 13.3 26.4
Occupancyandother
operatingexpenses 26.2 30.7 33.1 28.2
Companyrestaurantmargin 13.8% 12.1% 17.4% 14.0%
Inter-
national China
2004 U.S. Division Division Worldwide
Companysales 100.0% 100.0% 100.0% 100.0%
Foodandpaper 29.9 33.8 37.1 31.8
Payrollandemployee
benefits 30.5 23.8 11.5 26.4
Occupancyandother
operatingexpenses 25.8 29.4 31.1 27.3
Companyrestaurantmargin 13.8% 13.0% 20.3% 14.5%
Inter-
national China
2003 U.S. Division Division Worldwide
Companysales 100.0% 100.0% 100.0% 100.0%
Foodandpaper 28.8 34.1 38.0 30.9
Payrollandemployee
benefits 31.0 23.8 10.7 27.2
Occupancyandother
operatingexpenses 25.6 29.1 31.5 27.1
Companyrestaurantmargin 14.6% 13.0% 19.8% 14.8%
In2005,U.S.restaurantmarginsasapercentageofsales
wereflatcomparedto2004.Theimpactofsamestoresales
growthonrestaurantmarginwasoffsetbyhigheroccupancy
and othercosts. Higheroccupancy and othercostswere
drivenbyincreasesinutilitycostsandadvertisingcosts.
Afavorableimpactfrom the53rdweek(13basis points)
was offset by the unfavorable impact of the adoption of
SFAS123R(17basispoints).
In2004,thedecreaseinU.S.restaurantmarginsas
apercentageofsaleswasdrivenbyhigherfoodandpaper
costsandhigheroccupancyandothercosts,partiallyoffset
by the impact of same store sales growth on restaurant
margin.Higherfoodandpapercostswereprimarilydrivenby
increasedcommoditycosts(principallycheeseandmeats)
andhigheroccupancyandothercostswereprimarilydriven
byincreasedexpenseresultingfromtheadjustmentrelated
toouraccountingforleasesandthedepreciationoflease-
holdimprovements.
In 2005, the decrease in the International Division
restaurant margins as a percentage of sales included a
51basis point unfavorable impact of refranchising our
restaurantsinPuertoRico.Alsocontributingtothedecrease
40. | Yum!Brands,Inc.