- Worldwide system sales grew 4%. Worldwide restaurant margin increased 3.3 percentage points to 19.2% and worldwide operating profit increased 22%.
- Total international development was 249 new restaurants; 86% of this development occurred in emerging markets.
- China Division system sales increased 17%, driven by 7% unit growth and 9% same-store sales growth. Restaurant margin increased 6.8 percentage points to 23.4%. Operating profit increased 80%.
- KFC Division system sales increased 4%, driven by 2% unit growth and 1% same-store sales growth. Restaurant margin decreased 0.3 percentage points to 12.9%. Operating profit increased 4%.
- Pizza Hut Division system sales were even, as 2% unit growth was offset by a 2% same-store sales decline. Restaurant margin decreased 4.2 percentage points to 10.8%. Operating profit decreased 14%.
- Taco Bell Division system sales were even, as 1% unit growth was offset by a 1% same-store sales decline. Restaurant margin decreased 2.6 percentage points to 15.6%. Operating profit decreased 16%.
- India Division system sales increased 21%, driven by 25% unit growth which was partially offset by a 1% same-store sales decline. Operating profit declined $1 million.
- Worldwide effective tax rate, prior to Special Items, decreased to 25.8% from 26.0%.
- Foreign currency translation negatively impacted operating profit by $3 million.
|EPS Excluding Special Items||$0.87||$0.70||24%|
|Special Items Gain/(Loss) 1||$0.00||$0.02||NM|
|1 See Reconciliation of Non-GAAP Measurements to GAAP Results for further detail of the Special Items.|
|Special Items are primarily related to U.S. refranchising gains.|