Taco Bell 2004 Annual Report Download - page 2
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Please find page 2 of the 2004 Taco Bell 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.1-6 DEARPARTNERS
7 THEYum!DYNASTYMODEL
8-11 CHINAPOWER
12-13 GLOBALPOWER
14-15 BRANDPOWERX5
16-17 TACOBELL:THINKOUTSIDETHEBUN!
18-19 PIZZAHUT:GATHER’ROUNDTHEGOODSTUFF
20-21 KFC:CHICKENCAPITALU.S.A.
22-23 LONGJOHNSILVER’S:GETCOASTAL!
A&W:HOMETOWNFOODMADEFUN
24-25 MULTIBRANDPOWER
26-29 CUSTOMERMANIAPOWER:100%CHAMPS
30-32 POWEROFRESULTS:FINANCIALREVIEW
33-80 FINANCIALS
%B/(W)
(Inmillions,exceptpershareamounts) 2004 2003 Change
Companysales $7,992 $7,441 7
Franchiseandlicensefees 1,019 939 8
Totalrevenues $9,011 $8,380 8
Operatingprofit $1,155 $1,059 9
Earningsbeforespecialitems $ 721 $ 628 15
Specialitems,netoftax 19 (11) NM
Netincome $ 740 $ 617 20
Wrenchlitigationincome(expense) $ 14 $ (42) NM
AmeriServeandother(charges)credits 16 26 NM
Cumulativeeffectofaccountingchange — (2) NM
Specialitems 30 (18) NM
Incometaxonspecialitems (11) 7 NM
Specialitems,netoftax $ 19 $ (11) NM
Dilutedearningspercommonshare:
Earningsbeforespecialitems $ 2.36 $ 2.06 15
Specialitems,netoftax 0.06 (0.04) NM
Reported $ 2.42 $ 2.02 20
Cashflowsprovidedbyoperatingactivities $1,131 $1,053 7
AVERAGEU.S.SALESPERSYSTEMUNIT(a)
(Inthousands) 2004 2003 2002 2001 2000 5-yeargrowth(b)
KFC $ 896 $ 898 $898 $865 $833 1%
PizzaHut 794 748 748 724 712 3%
TacoBell 1,069 1,005 964 890 896 3%
(a)Excludeslicenseunits.
(b)Compoundannualgrowthrate.
TABLEOFCONTENTS
financial
highlights
NourishingBodies:YUMeals.InAmerica
alone,oneintenchildrenundertheage
offiverunstheriskofgoingtobedhungry
everynight.Oneinten.Sowedecided
todosomethingaboutthisandhave
createdtheworld’slargestpreparedfood
recoveryprogram.Wenowdonatemillions
ofpoundsofpreparedfoodtothehungry.
Foodthathasnutritionalvalueandwill
providenourishmenttothosemostin
need,theunderprivileged.
NourishingYoungMinds:PizzaHut’s
BOOKIT!Program.For20years,children
havefoundreadingalittlemorefunand
rewarding,asaresultofparticipatingin
BOOKIT!Asthenation’slargestreading
incentiveprogram,BOOKIT!provides
pizza,praiseandrecognitionforchildren’s
readingachievements.Since1985,
PizzaHuthasinvestednearlyahalfbillion
dollarsinBOOKIT!toencouragechildren
toreadmoreanddiscoverthejoyand
pleasureofreading.
NourishingSouls:KFC’sColonel’sKids.
Withmoreandmoredouble-incomeand
single-parenthouseholds,findingsafe,
affordablehigh-qualitychildcarehas
becomeanincreasingburden.Today,
Colonel’sKidshelpsfundextended-hour
andinfant/toddlerchildcareprograms
acrossthecountryforthemillionsof
peoplewhowork“afterhours”oron
weekends.Since2000,morethan
$4.5millionhasbeenawardedtoYMCA
ChildCareCentersnationwide.
NourishingSpirits:TacoBell’s
TEENSupreme.TheTacoBellFoundation
iscommittedtohelpingteensbecome
successfulandproductiveleadersintheir
communities.Throughitspartnership
withtheBoys&GirlsClubsofAmerica,
theTacoBellFoundationsupportsteen-
focusedinitiativesthataredesignedto
buildself-esteem,leadershipskillsand
values.Since1995,TacoBellandits
franchiseeshavedonatedover$15
milliondollarstotheBoys&GirlsClubs
ofAmericaforteenprogramming.
TsunamiRelief:Finally,we’reveryproud
thatourteammatesandfranchisees
aroundtheglobecametogetherin
supportofvictimsoftheTsunaminatural
disasterinSoutheastAsiainlate2004.
Together,theYUMFoundationandits
employeesandfranchiseesdonated
over$2.2milliontoaidthoseintheir
timeofneed.
AtYum!Brands,webelieveinthe
powerofgivingbacktothecommunity
tomakeadifferenceinthelivesofour
customersandtheirfamilies.
Whilewecommitourselvestomakinga
differencebyfinanciallysupportinghundreds
andhundredsofcharitiesacrosstheglobe,
oureffortsareprimarilyfocusedonnourishing
thebodies,minds,soulsandspiritsofchildren
inneed.Wedothisthroughprogramsdedicated
tohungerrelief,daycaresubsidies,reading
incentivesandmentoringat-riskteens.
Here’sabriefsnapshotoftheworkthatisunderway:
FromAmericatoEurope,Asiaandallaroundtheglobe,we’re
committedtoimprovingthelivesofthecustomersweserve.
That’scommunitymania!
“power
ofgivingback!”
FrontandBackCover:KFCandPizzaHutinShanghai,China