Share Repurchase Activity

The company repurchased 585,000 shares of its common stock for $24.9 million during the three months ended June 24, 2012 and repurchased 957,000 shares for $38.7 million during the six months ended June 24, 2012. Subsequent to quarter-end through July 26, 2012, the company repurchased 287,000 shares for $13.6 million.

On July 26, 2012, the company’s Board of Directors approved an increase of $50 million in the amount of the Company’s common stock that may be purchased under the Company’s share repurchase program through June 30, 2013, bringing the total authorized under the program to $975 million since its inception in 1999. Approximately $69.2 million currently remains available under the company’s share repurchase program, including the amount remaining under the Board’s previously authorized share repurchase program. This includes the authorization to purchase shares in both the open market and private transactions, and pursuant to a 10b5-1 trading plan or otherwise.

There were 24.1 million and 24.3 million diluted weighted average shares outstanding for the three- and six-month periods, representing decreases of 6.1% and 5.6% over the prior year comparable periods. Diluted earnings per share increased $0.03 and $0.07 for the three- and six-month periods, respectively, due to the reductions in shares outstanding, primarily resulting from the share repurchase program. Approximately 23.6 million actual shares of the company’s common stock were outstanding as of June 24, 2012.

2012 Earnings Guidance Update

The company raised its 2012 guidance for diluted earnings per share and North America and International comparable sales based on solid results for the first six months of the year and reaffirmed all other guidance. The update is as follows:
  Updated Guidance   Previous Guidance
Diluted earnings per share (a) $2.45 to $2.55 $2.40 to $2.50
North America comparable sales +2.0% to +3.0%

+1.5% to +2.5%
International comparable sales +4.0% to +5.5% +2.5% to +4.5%

(a) The 2012 fiscal year will consist of 53 weeks. The impact of the 53 rd week of operations is expected to increase earnings per share by approximately $0.08 to $0.10, substantially offsetting the decrease in 2012 from the Incentive Contribution.

The company is changing its policy for providing guidance related to key operating assumptions and earnings. Effective at the end of 2012, the company no longer plans to issue a separate press release in December to announce key operating assumptions and earnings guidance for the following year. Instead, the company now plans to include such guidance with the fourth quarter and full year earnings press release, generally issued in late February. Please visit the “Investor Relations” section of our website for a list of upcoming earnings press release and earnings conference call dates for fiscal 2012 results.

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