International Overview
Darrell van Ligten
President - International
Agenda
Brief History
Development Progress
Growth Strategies
2
Restaurants Outside of United States
340 outside North
America
America
Sources: Company reports
3
Where We Are Today
4
8,000 Unit
Potential
Potential
5
Methodology For New Markets
Consumer Foodservice Database
Fast Food (QSR Market)
Annually researched and
updated foodservice market
data. Sources include:
updated foodservice market
data. Sources include:
– Trade surveys with industry
sources
sources
– Secondary research
– Outlet audits
International Markets
Core countries of Passport
Database
Database
Cross-Country Analysis
Pegged country data against
world data and compared:
world data and compared:
– Historic and forecast QSR
value growth
value growth
– Transactions per capita and
growth
growth
– Category penetration per HH
– Share of franchised
(chained) outlets
(chained) outlets
Country Selection
Identified and prioritized
countries across globe and
regions based on the results of
cross-country analysis and risk
profile
countries across globe and
regions based on the results of
cross-country analysis and risk
profile
Risk Assessment
Operating Risk based on 10
criteria items
criteria items
(e.g. Political stability,
regulatory, labor market,
tax, etc)
regulatory, labor market,
tax, etc)
Sources: Euromonitor International and The Economist Intelligence Unit
6
7
— Global marketplace accepts Western QSRs
— Support infrastructure already established
— Development-focused
— Growth strategies
— Financial resources
— Commitment to global expansion
Why We’re Bullish
8
Restaurant AUVs
9
Puerto Rico
New Zealand
Bahamas
$1.9 Million
$2.0 Million
$4.2 Million
$1.4 Million
United States
10
Growth Is Our
Primary Focus
Primary Focus
11
Ignite Growth in
Existing Markets
Existing Markets
12
13
14
Recruit sophisticated,
well-capitalized
franchisees
well-capitalized
franchisees
15
— Previous restaurant experience
— Real estate access
— Existing infrastructure
— Adequate capital
We Expect Future Franchisees to Have…
16
17
Singapore
Middle
East
East
Argentina
Russia
Trinidad
& Tobago
& Tobago
Invest in
High Opportunity
Markets
High Opportunity
Markets
18
— Geopolitical Stability
— Sound Economic Trends
— Strong Population Growth
— Rising Standard of Living
— Underpenetrated QSR Sector
High Opportunity Market Characteristics
19
20
30% of our 8,000
unit potential
unit potential
China
Brazil
21
9% of our
8,000 unit
potential
8,000 unit
potential
Japan
22
Reversed Declining Country & Unit Count Trends
23
1998 to 2008
2008 to 2010
Net Country Growth
Net Unit Growth
-88
56
-20
2
24
1998 to 2008
2008 to 2010
New Countries Signed
Total Countries Under
Agreements
Agreements
Grown Development Agreements Substantially
2008
2010
12
33
6
23
25
Increased Store Commitments Significantly
2008
2010
151
610
Future Store Commitments
26
~1,000
International Designs
— More modern
— More innovative
— More avant-garde
27
Relevant
& Contemporary
Store Designs
& Contemporary
Store Designs
28
— Color palettes
— Furniture & fixtures
— Store layouts
Design Feedback
29
30
31
International
Training Store
Training Store
International
Training Store
Training Store
32
Singapore
Singapore
32
Bahamas
Bahamas
Mexico City
Mexico City
International
Store Designs
Store Designs
International
Store Designs
Store Designs
33
New Store
Technology
Technology
New Store
Technology
Technology
34
Design Portal
Retail Design
is a Continuous
Process
is a Continuous
Process
35
36
Natural
Natural
Modern
Modern
Urban
Urban
Future
Design Concepts
Design Concepts
37
38
Breakfast,
lunch and dinner
lunch and dinner
39
1 large meal with
constant snacking
constant snacking
White meat chicken
Dark meat chicken
3 item combos
4 item combos
We All Eat Differently
VS
VS
VS
40
42
43
44
45
46
47
48
49
49
50
Coffee Jelly
Frosty
Frosty
51
51
Operational
Excellence Builds
Brand Loyalty
Excellence Builds
Brand Loyalty
52
Consistent Operations
— Same internal evaluation process
— Same quality assurance standards
— Same performance analysis
54
2008
2010
Stores Graded “F”
Stores Graded “A” or “B”
International Restaurant Audit Scores
2008
2010
16%
0%
48%
80%
Superior Operations
Grows Long-term
Sales & Profits
Grows Long-term
Sales & Profits
55
“A journey of a thousand miles,
starts with a single step.”
starts with a single step.”
- Lao Tzu
56
International Accomplishments
— Accelerated development
— Transformed retail designs
— Redefined menu strategy
— Recommitted to operational excellence
57
Continue
Making Sizeable
Investments
Making Sizeable
Investments
58
Significant
Earnings Growth
& Long-term
Value
Earnings Growth
& Long-term
Value
59
Nelson Peltz
— Chairman