Exhibit 99.1
Yum China Holdings, Inc.
Recast Consolidated and Combined Statements of Income
(in US$ millions, except for per share data)
(unaudited)
| 2017 |
|
| 2016 |
| |||||||||||||||||||
|
| Quarter Ended March 31 |
|
| Quarter Ended June 30 |
|
| Quarter Ended September 30 |
|
| Quarter Ended December 31 |
|
| Year Ended December 31 |
|
| Year Ended December 31 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company sales |
| $ | 1,738 |
|
| $ | 1,664 |
|
| $ | 1,924 |
|
| $ | 1,667 |
|
| $ | 6,993 |
|
| $ | 6,622 |
|
Franchise fees and rental income |
|
| 36 |
|
|
| 33 |
|
|
| 38 |
|
|
| 34 |
|
|
| 141 |
|
|
| 129 |
|
Revenues from transactions with franchisees and unconsolidated affiliates |
|
| 147 |
|
|
| 141 |
|
|
| 160 |
|
|
| 151 |
|
|
| 599 |
|
|
| 299 |
|
Other revenues |
|
| 5 |
|
|
| 3 |
|
|
| 8 |
|
|
| 20 |
|
|
| 36 |
|
|
| 25 |
|
Total revenues |
|
| 1,926 |
|
|
| 1,841 |
|
|
| 2,130 |
|
|
| 1,872 |
|
|
| 7,769 |
|
|
| 7,075 |
|
Costs and Expenses, Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company restaurants |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food and paper |
|
| 486 |
|
|
| 483 |
|
|
| 560 |
|
|
| 505 |
|
|
| 2,034 |
|
|
| 1,921 |
|
Payroll and employee benefits |
|
| 368 |
|
|
| 366 |
|
|
| 403 |
|
|
| 406 |
|
|
| 1,543 |
|
|
| 1,432 |
|
Occupancy and other operating expenses |
|
| 530 |
|
|
| 539 |
|
|
| 614 |
|
|
| 562 |
|
|
| 2,245 |
|
|
| 2,259 |
|
Company restaurant expenses |
|
| 1,384 |
|
|
| 1,388 |
|
|
| 1,577 |
|
|
| 1,473 |
|
|
| 5,822 |
|
|
| 5,612 |
|
General and administrative expenses |
|
| 98 |
|
|
| 118 |
|
|
| 123 |
|
|
| 156 |
|
|
| 495 |
|
|
| 429 |
|
Franchise expenses |
|
| 18 |
|
|
| 17 |
|
|
| 19 |
|
|
| 17 |
|
|
| 71 |
|
|
| 72 |
|
Expenses for transactions with franchisees and unconsolidated affiliates |
|
| 147 |
|
|
| 137 |
|
|
| 159 |
|
|
| 149 |
|
|
| 592 |
|
|
| 295 |
|
Other operating costs |
|
| 3 |
|
|
| 3 |
|
|
| 8 |
|
|
| 14 |
|
|
| 28 |
|
|
| 15 |
|
Closures and impairment expenses, net |
|
| — |
|
|
| 18 |
|
|
| 2 |
|
|
| 27 |
|
|
| 47 |
|
|
| 78 |
|
Refranchising gain, net |
|
| (1 | ) |
|
| — |
|
|
| (1 | ) |
|
| (3 | ) |
|
| (5 | ) |
|
| (11 | ) |
Other income, net |
|
| (19 | ) |
|
| (11 | ) |
|
| (21 | ) |
|
| (8 | ) |
|
| (59 | ) |
|
| (49 | ) |
Total costs and expenses, net |
|
| 1,630 |
|
|
| 1,670 |
|
|
| 1,866 |
|
|
| 1,825 |
|
|
| 6,991 |
|
|
| 6,441 |
|
Operating Profit |
|
| 296 |
|
|
| 171 |
|
|
| 264 |
|
|
| 47 |
|
|
| 778 |
|
|
| 634 |
|
Interest income, net |
|
| 4 |
|
|
| 4 |
|
|
| 8 |
|
|
| 9 |
|
|
| 25 |
|
|
| 11 |
|
Changes in fair value of financial instruments |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 21 |
|
Income Before Income Taxes |
|
| 300 |
|
|
| 175 |
|
|
| 272 |
|
|
| 56 |
|
|
| 803 |
|
|
| 666 |
|
Income tax provision |
|
| (90 | ) |
|
| (43 | ) |
|
| (87 | ) |
|
| (159 | ) |
|
| (379 | ) |
|
| (156 | ) |
Net income (loss) – including noncontrolling interests |
|
| 210 |
|
|
| 132 |
|
|
| 185 |
|
|
| (103 | ) |
|
| 424 |
|
|
| 510 |
|
Net income – noncontrolling interests |
|
| 6 |
|
|
| 7 |
|
|
| 9 |
|
|
| 4 |
|
|
| 26 |
|
|
| 12 |
|
Net Income (Loss) – Yum China Holdings, Inc. |
|
| 204 |
|
|
| 125 |
|
|
| 176 |
|
|
| (107 | ) |
|
| 398 |
|
|
| 498 |
|
Weighted-average common shares outstanding: (in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 388 |
|
|
| 387 |
|
|
| 386 |
|
|
| 386 |
|
|
| 387 |
|
|
| 368 |
|
Diluted |
|
| 395 |
|
|
| 399 |
|
|
| 398 |
|
|
| 386 |
|
|
| 398 |
|
|
| 369 |
|
Basic Earnings (Loss) Per Common Share |
|
| 0.53 |
|
|
| 0.32 |
|
|
| 0.46 |
|
|
| (0.28 | ) |
|
| 1.03 |
|
|
| 1.35 |
|
Diluted Earnings (Loss) Per Common Share |
|
| 0.52 |
|
|
| 0.31 |
|
|
| 0.44 |
|
|
| (0.28 | ) |
|
| 1.00 |
|
|
| 1.35 |
|
Recast Consolidated Balance Sheets
(in US$ millions)
(unaudited)
| 12/31/2017 |
| 12/31/2016 | |||||||
ASSETS |
|
|
|
|
|
|
| |||
Current Assets |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 1,059 |
|
|
| $ | 885 |
|
|
Short-term investments |
|
| 205 |
|
|
|
| 79 |
|
|
Accounts receivable, net |
|
| 81 |
|
|
|
| 74 |
|
|
Inventories, net |
|
| 297 |
|
|
|
| 268 |
|
|
Prepaid expenses and other current assets |
|
| 160 |
|
|
|
| 120 |
|
|
Total Current Assets |
|
| 1,802 |
|
|
|
| 1,426 |
|
|
Property, plant and equipment, net |
|
| 1,691 |
|
|
|
| 1,647 |
|
|
Goodwill |
|
| 108 |
|
|
|
| 79 |
|
|
Intangible assets, net |
|
| 101 |
|
|
|
| 88 |
|
|
Investments in unconsolidated affiliates |
|
| 95 |
|
|
|
| 77 |
|
|
Other assets |
|
| 385 |
|
|
|
| 267 |
|
|
Deferred income taxes |
|
| 105 |
|
|
|
| 166 |
|
|
Total Assets |
| $ | 4,287 |
|
|
| $ | 3,750 |
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY |
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
|
|
Accounts payable and other current liabilities |
| $ | 979 |
|
|
| $ | 971 |
|
|
Income taxes payable |
|
| 39 |
|
|
|
| 33 |
|
|
Total Current Liabilities |
|
| 1,018 |
|
|
|
| 1,004 |
|
|
Capital lease obligations |
|
| 28 |
|
|
|
| 28 |
|
|
Other liabilities and deferred credits |
|
| 394 |
|
|
|
| 285 |
|
|
Total Liabilities |
|
| 1,440 |
|
|
|
| 1,317 |
|
|
Redeemable Noncontrolling Interest |
|
| 5 |
|
|
|
| — |
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
Common stock, $0.01 par value; 1,000 million shares authorized; 389 million shares and 383 million shares issued at December 31, 2017 and 2016, respectively; 385 million shares and 383 million shares outstanding at December 31, 2017 and 2016, respectively |
|
| 4 |
|
|
|
| 4 |
|
|
Treasury stock |
|
| (148 | ) |
|
|
| (20 | ) |
|
Additional paid-in capital |
|
| 2,375 |
|
|
|
| 2,345 |
|
|
Retained earnings |
|
| 397 |
|
|
|
| 38 |
|
|
Accumulated other comprehensive income |
|
| 137 |
|
|
|
| — |
|
|
Total Equity – Yum China Holdings, Inc. |
|
| 2,765 |
|
|
|
| 2,367 |
|
|
Noncontrolling interests |
|
| 77 |
|
|
|
| 66 |
|
|
Total Equity |
|
| 2,842 |
|
|
|
| 2,433 |
|
|
Total Liabilities, Redeemable Noncontrolling Interest and Equity |
| $ | 4,287 |
|
|
| $ | 3,750 |
|
|
2
Recast Annual Segment Operating Results
(in US$ millions)
(unaudited)
| Year Ended 12/31/2017 |
| ||||||||||||||||||
|
| KFC |
|
| Pizza Hut |
|
| All Other Segments |
|
| Corporate & Unallocated(1) |
|
| Total |
| |||||
Total revenues |
|
| 5,066 |
|
|
| 2,093 |
|
|
| 106 |
|
|
| 504 |
|
|
| 7,769 |
|
Company restaurant expenses |
|
| 3,986 |
|
|
| 1,798 |
|
|
| 38 |
|
|
| — |
|
|
| 5,822 |
|
General and administrative expenses |
|
| 176 |
|
|
| 108 |
|
|
| 26 |
|
|
| 185 |
|
|
| 495 |
|
Franchise expenses |
|
| 69 |
|
|
| 2 |
|
|
| — |
|
|
| — |
|
|
| 71 |
|
Expenses for transactions with franchisees and unconsolidated affiliates |
|
| 70 |
|
|
| 1 |
|
|
| 21 |
|
|
| 500 |
|
|
| 592 |
|
Other operating costs |
|
| — |
|
|
| — |
|
|
| 28 |
|
|
| — |
|
|
| 28 |
|
Closures and impairment expenses, net |
|
| 20 |
|
|
| 27 |
|
|
| — |
|
|
| — |
|
|
| 47 |
|
Refranchising gain, net |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (5 | ) |
|
| (5 | ) |
Other (income) expenses, net |
|
| (57 | ) |
|
| — |
|
|
| 2 |
|
|
| (4 | ) |
|
| (59 | ) |
Total costs and expenses, net |
|
| 4,264 |
|
|
| 1,936 |
|
|
| 115 |
|
|
| 676 |
|
|
| 6,991 |
|
Operating Profit (Loss) |
|
| 802 |
|
|
| 157 |
|
|
| (9 | ) |
|
| (172 | ) |
|
| 778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended 12/31/2016 |
| |||||||||||||||||
|
| KFC |
|
| Pizza Hut |
|
| All Other Segments |
|
| Corporate & Unallocated(1) |
|
| Total |
| |||||
Total revenues |
|
| 4,757 |
|
|
| 1,996 |
|
|
| 100 |
|
|
| 222 |
|
|
| 7,075 |
|
Company restaurant expenses |
|
| 3,829 |
|
|
| 1,727 |
|
|
| 57 |
|
|
| (1 | ) |
|
| 5,612 |
|
General and administrative expenses |
|
| 162 |
|
|
| 99 |
|
|
| 15 |
|
|
| 153 |
|
|
| 429 |
|
Franchise expenses |
|
| 69 |
|
|
| 3 |
|
|
| — |
|
|
| — |
|
|
| 72 |
|
Expenses for transactions with franchisees and unconsolidated affiliates |
|
| 61 |
|
|
| 1 |
|
|
| 14 |
|
|
| 219 |
|
|
| 295 |
|
Other operating costs |
|
| — |
|
|
| — |
|
|
| 15 |
|
|
| — |
|
|
| 15 |
|
Closures and impairment expenses, net |
|
| 41 |
|
|
| 17 |
|
|
| 3 |
|
|
| 17 |
|
|
| 78 |
|
Refranchising gain, net |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (11 | ) |
|
| (11 | ) |
Other (income) expenses, net |
|
| (46 | ) |
|
| — |
|
|
| 1 |
|
|
| (4 | ) |
|
| (49 | ) |
Total costs and expenses, net |
|
| 4,116 |
|
|
| 1,847 |
|
|
| 105 |
|
|
| 373 |
|
|
| 6,441 |
|
Operating Profit (Loss) |
|
| 641 |
|
|
| 149 |
|
|
| (5 | ) |
|
| (151 | ) |
|
| 634 |
|
(1) | Amount includes revenues and expenses associated with transactions with franchisees and unconsolidated affiliates such as inventory procurement and other services provided to franchisees and unconsolidated affiliates. |
3
Recast Quarterly Segment Operating Results
(in US$ millions)
(unaudited)
| Quarter Ended 3/31/2017 |
| ||||||||||||||||||
|
| KFC |
|
| Pizza Hut |
|
| All Other Segments |
|
| Corporate & Unallocated(1) |
|
| Total |
| |||||
Total revenues |
|
| 1,250 |
|
|
| 528 |
|
|
| 23 |
|
|
| 125 |
|
|
| 1,926 |
|
Company restaurant expenses |
|
| 950 |
|
|
| 423 |
|
|
| 11 |
|
|
| — |
|
|
| 1,384 |
|
General and administrative expenses |
|
| 39 |
|
|
| 25 |
|
|
| 3 |
|
|
| 31 |
|
|
| 98 |
|
Franchise expenses |
|
| 17 |
|
|
| 1 |
|
|
| — |
|
|
| — |
|
|
| 18 |
|
Expenses for transactions with franchisees and unconsolidated affiliates |
|
| 17 |
|
|
| — |
|
|
| 5 |
|
|
| 125 |
|
|
| 147 |
|
Other operating costs |
|
| — |
|
|
| — |
|
|
| 3 |
|
|
| — |
|
|
| 3 |
|
Closures and impairment expenses (income), net |
|
| 1 |
|
|
| (1 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Refranchising gain, net |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (1 | ) |
|
| (1 | ) |
Other income, net |
|
| (19 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (19 | ) |
Total costs and expenses, net |
|
| 1,005 |
|
|
| 448 |
|
|
| 22 |
|
|
| 155 |
|
|
| 1,630 |
|
Operating Profit (Loss) |
|
| 245 |
|
|
| 80 |
|
|
| 1 |
|
|
| (30 | ) |
|
| 296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quarter Ended 6/30/2017 |
| |||||||||||||||||
|
| KFC |
|
| Pizza Hut |
|
| All Other Segments |
|
| Corporate & Unallocated(1) |
|
| Total |
| |||||
Total revenues |
|
| 1,206 |
|
|
| 498 |
|
|
| 16 |
|
|
| 121 |
|
|
| 1,841 |
|
Company restaurant expenses |
|
| 956 |
|
|
| 423 |
|
|
| 9 |
|
|
| — |
|
|
| 1,388 |
|
General and administrative expenses |
|
| 38 |
|
|
| 26 |
|
|
| 4 |
|
|
| 50 |
|
|
| 118 |
|
Franchise expenses |
|
| 17 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 17 |
|
Expenses for transactions with franchisees and unconsolidated affiliates |
|
| 15 |
|
|
| 1 |
|
|
| 3 |
|
|
| 118 |
|
|
| 137 |
|
Other operating costs |
|
| — |
|
|
| — |
|
|
| 3 |
|
|
| — |
|
|
| 3 |
|
Closures and impairment expenses, net |
|
| 9 |
|
|
| 9 |
|
|
| — |
|
|
| — |
|
|
| 18 |
|
Other income, net |
|
| (11 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (11 | ) |
Total costs and expenses, net |
|
| 1,024 |
|
|
| 459 |
|
|
| 19 |
|
|
| 168 |
|
|
| 1,670 |
|
Operating Profit (Loss) |
|
| 182 |
|
|
| 39 |
|
|
| (3 | ) |
|
| (47 | ) |
|
| 171 |
|
(1) | Amount includes revenues and expenses associated with transactions with franchisees and unconsolidated affiliates such as inventory procurement and other services provided to franchisees and unconsolidated affiliates. |
4
Recast Quarterly Segment Operating Results
(in US$ millions)
(unaudited)
| Quarter Ended 9/30/2017 |
| ||||||||||||||||||
|
| KFC |
|
| Pizza Hut |
|
| All Other Segments |
|
| Corporate & Unallocated(1) |
|
| Total |
| |||||
Total revenues |
|
| 1,402 |
|
|
| 569 |
|
|
| 23 |
|
|
| 136 |
|
|
| 2,130 |
|
Company restaurant expenses |
|
| 1,082 |
|
|
| 487 |
|
|
| 8 |
|
|
| — |
|
|
| 1,577 |
|
General and administrative expenses |
|
| 44 |
|
|
| 27 |
|
|
| 9 |
|
|
| 43 |
|
|
| 123 |
|
Franchise expenses |
|
| 19 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 19 |
|
Expenses for transactions with franchisees and unconsolidated affiliates |
|
| 19 |
|
|
| — |
|
|
| 4 |
|
|
| 136 |
|
|
| 159 |
|
Other operating costs |
|
| — |
|
|
| — |
|
|
| 8 |
|
|
| — |
|
|
| 8 |
|
Closures and impairment expenses, net |
|
| — |
|
|
| 1 |
|
|
| 1 |
|
|
| — |
|
|
| 2 |
|
Refranchising gain, net |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (1 | ) |
|
| (1 | ) |
Other income, net |
|
| (18 | ) |
|
| — |
|
|
| — |
|
|
| (3 | ) |
|
| (21 | ) |
Total costs and expenses, net |
|
| 1,146 |
|
|
| 515 |
|
|
| 30 |
|
|
| 175 |
|
|
| 1,866 |
|
Operating Profit (Loss) |
|
| 256 |
|
|
| 54 |
|
|
| (7 | ) |
|
| (39 | ) |
|
| 264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quarter Ended 12/31/2017 |
| |||||||||||||||||
|
| KFC |
|
| Pizza Hut |
|
| All Other Segments |
|
| Corporate & Unallocated(1) |
|
| Total |
| |||||
Total revenues |
|
| 1,208 |
|
|
| 498 |
|
|
| 44 |
|
|
| 122 |
|
|
| 1,872 |
|
Company restaurant expenses |
|
| 998 |
|
|
| 465 |
|
|
| 10 |
|
|
| — |
|
|
| 1,473 |
|
General and administrative expenses |
|
| 55 |
|
|
| 30 |
|
|
| 10 |
|
|
| 61 |
|
|
| 156 |
|
Franchise expenses |
|
| 16 |
|
|
| 1 |
|
|
| — |
|
|
| — |
|
|
| 17 |
|
Expenses for transactions with franchisees and unconsolidated affiliates |
|
| 19 |
|
|
| — |
|
|
| 9 |
|
|
| 121 |
|
|
| 149 |
|
Other operating costs |
|
| — |
|
|
| — |
|
|
| 14 |
|
|
| — |
|
|
| 14 |
|
Closures and impairment expenses (income), net |
|
| 10 |
|
|
| 18 |
|
|
| (1 | ) |
|
| — |
|
|
| 27 |
|
Refranchising gain, net |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (3 | ) |
|
| (3 | ) |
Other (income) expenses, net |
|
| (9 | ) |
|
| — |
|
|
| 2 |
|
|
| (1 | ) |
|
| (8 | ) |
Total costs and expenses, net |
|
| 1,089 |
|
|
| 514 |
|
|
| 44 |
|
|
| 178 |
|
|
| 1,825 |
|
Operating Profit (Loss) |
|
| 119 |
|
|
| (16 | ) |
|
| — |
|
|
| (56 | ) |
|
| 47 |
|
(1) | Amount includes revenues and expenses associated with transactions with franchisees and unconsolidated affiliates such as inventory procurement and other services provided to franchisees and unconsolidated affiliates. |
5
Recast Annual System and Same-Store Sales Growth
(unaudited)
System sales growth includes the results of all restaurants regardless of ownership, including company-owned, unconsolidated affiliate and franchise restaurants that operate our concepts, except for non-company-owned restaurants for which we do not receive a sales-based royalty. Sales of unconsolidated affiliate and franchise restaurants typically generate ongoing franchise fees for the Company at a rate of approximately 6% of system sales. Sales of unconsolidated affiliate and franchise restaurants are not included in the Company sales in the Consolidated and Combined Statements of Income (Loss); however, the franchise fees are included in the Company’s revenues. We believe system sales growth is useful to investors as a significant indicator of the overall strength of our business as it incorporates all of our revenue drivers, Company and franchise same-store sales as well as net unit growth.
Same-store sales growth represents the estimated percentage change in sales of food of all restaurants in the Company system that have been open prior to the first day of our prior fiscal year.
| Year Ended 12/31/2017 |
| ||||||||||||||
|
| KFC |
|
| Pizza Hut |
|
| All Other Segments |
|
| Total |
| ||||
System Sales Growth (Decline) |
|
| 7 | % |
|
| 5 | % |
|
| (31 | )% |
|
| 6 | % |
System Sales Growth (Decline), excluding F/X(2) |
|
| 9 | % |
|
| 7 | % |
|
| (29 | )% |
|
| 8 | % |
Same-Store Sales Growth (Decline) |
|
| 5 | % |
|
| 1 | % |
|
| (6 | )% |
|
| 4 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended 12/31/2016 |
| |||||||||||||
|
| KFC |
|
| Pizza Hut |
|
| All Other Segments |
|
| Total |
| ||||
System Sales Growth (Decline) |
|
| — | % |
|
| (2 | )% |
|
| (41 | )% |
|
| (1 | )% |
System Sales Growth (Decline), excluding F/X(2) |
|
| 6 | % |
|
| 4 | % |
|
| (37 | )% |
|
| 5 | % |
Same-Store Sales Growth (Decline) |
|
| 3 | % |
|
| (7 | )% |
|
| (3 | )% |
|
| — | % |
(2) | The Company provides system sales growth (decline), excluding the impact of foreign currency translation (“F/X”). These amounts are derived by translating current year results at prior year average exchange rates. The Company believes the elimination of the F/X impact provides better year-to-year comparability without the distortion of foreign currency fluctuations. |
6
Recast Quarterly System and Same-Store Sales Growth
(unaudited)
| Quarter Ended 3/31/2017 |
| ||||||||||||||
|
| KFC |
|
| Pizza Hut |
|
| All Other Segments |
|
| Total |
| ||||
System Sales (Decline) Growth |
|
| (2 | )% |
|
| 3 | % |
|
| (42 | )% |
|
| (1 | )% |
System Sales Growth (Decline), excluding F/X(2) |
|
| 3 | % |
|
| 9 | % |
|
| (38 | )% |
|
| 4 | % |
Same-Store Sales Growth (Decline) |
|
| 1 | % |
|
| 3 | % |
|
| (1 | )% |
|
| 1 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quarter Ended 6/30/2017 |
| |||||||||||||
|
| KFC |
|
| Pizza Hut |
|
| All Other Segments |
|
| Total |
| ||||
System Sales Growth (Decline) |
|
| 3 | % |
|
| 1 | % |
|
| (35 | )% |
|
| 2 | % |
System Sales Growth (Decline), excluding F/X(2) |
|
| 8 | % |
|
| 6 | % |
|
| (32 | )% |
|
| 7 | % |
Same-Store Sales Growth (Decline) |
|
| 4 | % |
|
| — | % |
|
| (2 | )% |
|
| 3 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quarter Ended 9/30/2017 |
| |||||||||||||
|
| KFC |
|
| Pizza Hut |
|
| All Other Segments |
|
| Total |
| ||||
System Sales Growth (Decline) |
|
| 14 | % |
|
| 7 | % |
|
| (34 | )% |
|
| 12 | % |
System Sales Growth (Decline), excluding F/X(2) |
|
| 14 | % |
|
| 7 | % |
|
| (33 | )% |
|
| 12 | % |
Same-Store Sales Growth (Decline) |
|
| 10 | % |
|
| 1 | % |
|
| (5 | )% |
|
| 8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quarter Ended 12/31/2017 |
| |||||||||||||
|
| KFC |
|
| Pizza Hut |
|
| All Other Segments |
|
| Total |
| ||||
System Sales (Decline) Growth |
|
| 14 | % |
|
| 10 | % |
|
| (4 | )% |
|
| 13 | % |
System Sales Growth (Decline), excluding F/X(2) |
|
| 11 | % |
|
| 6 | % |
|
| (6 | )% |
|
| 9 | % |
Same-Store Sales Decline |
|
| 6 | % |
|
| 1 | % |
|
| (3 | )% |
|
| 5 | % |
(2) | The Company provides system sales growth (decline), excluding the impact of foreign currency translation (“F/X”). These amounts are derived by translating current year results at prior year average exchange rates. The Company believes the elimination of the F/X impact provides better year-to-year comparability without the distortion of foreign currency fluctuations. |
7
Recast Restaurant Count and New Unit Activity
(unaudited)
KFC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Company-owned |
|
| Unconsolidated affiliates |
|
| Franchise |
|
| Total |
| ||||
As of 12/31/2016 |
|
| 3,913 |
|
|
| 836 |
|
|
| 475 |
|
|
| 5,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Unit Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2017 |
|
| 46 |
|
|
| 12 |
|
|
| (5 | ) |
|
| 53 |
|
Q2 2017 |
|
| 32 |
|
|
| 15 |
|
|
| — |
|
|
| 47 |
|
Q3 2017 |
|
| 50 |
|
|
| 17 |
|
|
| 2 |
|
|
| 69 |
|
Q4 2017 |
|
| 71 |
|
|
| 11 |
|
|
| 13 |
|
|
| 95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of 12/31/2017 |
|
| 4,112 |
|
|
| 891 |
|
|
| 485 |
|
|
| 5,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pizza Hut |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Company-owned |
|
| Franchise |
|
| Total |
| |||
As of 12/31/2016 |
|
|
|
|
|
| 2,057 |
|
|
| 24 |
|
|
| 2,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Unit Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2017 |
|
|
|
|
|
| 21 |
|
|
| 3 |
|
|
| 24 |
|
Q2 2017 |
|
|
|
|
|
| 16 |
|
|
| 1 |
|
|
| 17 |
|
Q3 2017 |
|
|
|
|
|
| 34 |
|
|
| 1 |
|
|
| 35 |
|
Q4 2017 |
|
|
|
|
|
| 38 |
|
|
| — |
|
|
| 38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of 12/31/2017 |
|
|
|
|
|
| 2,166 |
|
|
| 29 |
|
|
| 2,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other Segments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Company-owned |
|
| Franchise |
|
| Total |
| |||
As of 12/31/2016 |
|
|
|
|
|
| 38 |
|
|
| 219 |
|
|
| 257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Unit Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2017 |
|
|
|
|
|
| (1 | ) |
|
| 15 |
|
|
| 14 |
|
Q2 2017 |
|
|
|
|
|
| (9 | ) |
|
| (4 | ) |
|
| (13 | ) |
Q3 2017 |
|
|
|
|
|
| — |
|
|
| 5 |
|
|
| 5 |
|
Q4 2017 |
|
|
|
|
|
| 1 |
|
|
| 36 |
|
|
| 37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of 12/31/2017 |
|
|
|
|
|
| 29 |
|
|
| 271 |
|
|
| 300 |
|
8