Mr. Carucci: We're focused on four key growth strategies. First, we have a great China business with tremendous scale and economics, and our goal is to continue to build dominant China brands. Second, we have a very strong and profitable broad-based international business, which we continue to grow. Third, we are focused on running great restaurants. And fourth, we are the worldwide leader in multibranding ' combining two brands and greater consumer choice under one roof. In 2004, China profits were almost $200 million and up over 20%. The key factor is continued, very strong growth, expansion and dominance of our brands. In 2004, Yum! Restaurants International (YRI) achieved record revenues of $3.2 billion, operating profits of $542 million and a continued high level of return on invested capital. Unlike the US, our only major competitor from a chain QSR is McDonald's. For the fourth straight year we opened over 1,000 system restaurants outside the US. Our ongoing goal is to increase EPS at least 10% each year and you can expect at least 10% earnings per share growth in 2005. This would be our fourth consecutive year of solid double-digit EPS growth.
TWST: Is there a strength difference in restaurants that you develop and
operate yourself versus franchise and license-owned restaurants?
Mr. Carucci: We have been actively leveraging best practices across our
system since the company began in 1997. We're harnessing synergies and
leveraging strengths across the board. For example, we created the
world's largest purchasing co-op with more than $4 billion in purchasing
power. We also consolidated our media buying across the brands, making
us one of the top five purchases with more clout in the marketplace,
producing a greater return on our investment. One of the most important
things we've done was to create a common operating program around the
globe focused on 100% CHAMPS with a Yes! attitude. We're focused on the
key things that drive great guest satisfaction such as cleanliness,
hospitality, accuracy, maintenance, product and speed of service.
Tickers included in this excerpt: YUM
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