First quarter 2012 income before income taxes increased approximately $4.1 million, or 15.2%, excluding the $3.7 million impact of the Incentive Contribution, primarily due to the following:
- Domestic company-owned restaurants operating income improved approximately $400,000, excluding the benefit of a $1.0 million advertising credit from PJNMF related to the Incentive Contribution, primarily due to an increase of 3.0% in comparable sales.
- Domestic commissaries operating income increased $1.6 million primarily due to an increase in the number of North American restaurants.
- International operating income improved due to increased royalties attributable to strong comparable sales of 8.4% and net unit growth. In addition, our United Kingdom results improved due to restaurant openings and our company-owned restaurant results improved in Beijing, China.
- The improvement in the All others segment was primarily due to an improvement in the operating results of our eCommerce business unit.
|Mar. 25,||Mar. 27,|
|Net cash provided by operating activities||$||44,093||$||26,687|
|Purchase of property and equipment||(6,403||)||(4,823||)|
|Free cash flow *||$||37,690||$||21,864|
|*The increase in free cash flow is due to favorable changes in working capital.|