EX-99.1 4 yumc-ex991_20.htm EX-99.1 yumc-ex991_20.htm

Exhibit 99.1

 

Yum China Reports 6% Same-Store Sales Growth and 10% System Sales Growth;

Operating Profit Up 11% YoY; Board Declares Initial Dividend and Expands Share Repurchase Authorization

Shanghai, China (Oct. 5, 2017) – Yum China Holdings, Inc. (the “Company” or “Yum China”) (NYSE: YUMC) today reported unaudited results for the third quarter ended August 31, 2017.

Third Quarter Highlights

 

Same-store sales grew 6%, including growth of 7% at KFC, flat at Pizza Hut.

 

Total system sales grew 10%, including growth of 11% at KFC and 7% at Pizza Hut, excluding foreign currency translation (“F/X”).

 

Opened 129 new restaurants during the quarter.

 

Total restaurant margin increased 0.8 percentage points to 20.0%, primarily driven by same-store sales leverage.

 

Operating profit increased 11%, and 13% excluding F/X, primarily driven by same-store sales growth. F/X negatively impacted reported operating profit by $5 million.

 

Basic EPS increased 4% to $0.55 and diluted EPS was flat at $0.53.

 

Effective tax rate was 31.7%, compared to 29.8% in the prior-year quarter, primarily due to higher costs of repatriating current year earnings into the U.S.

 

Net income increased 9% to $211 million.

 

Adjusted EBITDA increased 9% to $425 million.

Dividend and Share Repurchase

 

The Board of Directors has approved a regular quarterly cash dividend program, and declared an initial cash dividend of $0.10 per share on Yum China’s common stock.

 

The Board of Directors has increased Yum China’s existing share repurchase authorization from $300 million to an aggregate of $550 million.

Key Results

 

 

 

Third Quarter

 

 

Year to Date

 

 

 

 

% Change

 

 

% Change

 

 

 

 

System

Sales

 

Same-Store

Sales

 

Net New

Units

 

Operating

Profit

 

 

System

Sales

 

Same-Store

Sales

 

Net New

Units

 

Operating

Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yum China

 

+10

 

+6

 

+6

 

+11

 

 

+7

 

+4

 

+6

 

+23

 

 

KFC

 

+11

 

+7

 

+5

 

+20

 

 

+8

 

+4

 

+5

 

+20

 

 

Pizza Hut

 

+7

 

-

 

+8

 

-

 

 

+7

 

+1

 

+8

 

+37

 

 

Yum China Holdings, Inc. •   Website http://ir.yumchina.com


 

 

 

Third Quarter

 

 

Year to Date

 

 

(in US$ million, except

 

 

 

 

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

% Change

 

 

for per share data and percentages)

2017

 

 

2016

 

 

Reported

 

Ex F/X

 

 

2017

 

 

2016

 

 

Reported

 

Ex F/X

 

 

Reported Operating Profit

$

317

 

 

$

286

 

 

+11

 

+13

 

 

$

714

 

 

$

582

 

 

+23

 

+27

 

 

Operating Profit Before Special Items1

$

314

 

 

$

283

 

 

+11

 

+12

 

 

$

711

 

 

$

580

 

 

+23

 

+27

 

 

Net income

$

211

 

 

$

192

 

 

+9

 

+11

 

 

$

493

 

 

$

414

 

 

+19

 

+23

 

 

Adjusted EBITDA1

$

425

 

 

$

390

 

 

+9

 

+11

 

 

$

1,004

 

 

$

895

 

 

+12

 

+16

 

 

Basic EPS

$

0.55

 

 

$

0.53

 

 

+4

 

+6

 

 

$

1.28

 

 

$

1.14

 

 

+12

 

+16

 

 

Diluted EPS

$

0.53

 

 

$

0.53

 

 

-

 

+2

 

 

$

1.24

 

 

$

1.14

 

 

+9

 

+13

 

 

Diluted EPS Before Special Items1

$

0.52

 

 

$

0.52

 

 

-

 

+2

 

 

$

1.23

 

 

$

1.11

 

 

+11

 

+15

 

 

1See Reconciliation of Reported Results to Non-GAAP Measures included in the accompanying tables of this release for further details.

Note: All comparisons are versus the same period a year ago. Consistent with prior years, Yum China’s fiscal third quarter includes June, July and August results. Percentages may not recompute due to rounding.

System sales and same-store sales percentages exclude the impact of F/X.

CEO Comments

 

“We are pleased to report the third consecutive quarter of delivering positive same-store sales growth. With revenues exceeding $2 billion in the quarter, restaurant margin, operating profit and net income have all improved. We opened 129 new restaurants in the third quarter and we are on track to achieve our development target of 550-600 new stores in the year,” said Micky Pant, CEO of Yum China.  

 

“In this quarter, our strategic initiatives on digital and delivery continued to show encouraging development, which we believe will enable our long-term growth. The connection with our over 120 million loyalty members is getting stronger. The growth in mobile payments and cashless settlement methods for sales continued to outperform previous quarters. With over 5,100 restaurants across China offering delivery service, delivery contributed over 14% of company sales in the third quarter.

 

Given the strength of our business and our confidence in generating strong cash flows long term, our Board of Directors has approved a regular quarterly cash dividend program and authorized additional share repurchases.  These demonstrate our strong commitment to increase shareholder returns through disciplined capital allocation while simultaneously driving strong operating performance.

 

With our strong operating results in this third quarter and our commitment to return capital to shareholders, we believe we are well positioned to continue to increase shareholder value over the long run.”

New-Unit Development and Asset Upgrade

 

Opened 129 new restaurants during the third quarter, and 352 year to date.

 

Remodeled 200 restaurants during the third quarter, and 429 year to date, led by KFC.

 

 

 

 

New Units

 

 

Restaurant Count

 

 

 

 

 

 

Third

 

 

 

 

As of Third Quarter End

 

 

 

 

 

 

Quarter

 

Year to Date

 

 

2017

 

 

2016

 

 

 

Yum China

 

 

129

 

352

 

 

 

7,747

 

 

 

7,330

 

 

 

KFC

 

 

81

 

215

 

 

 

5,347

 

 

 

5,087

 

 

 

Pizza Hut

 

 

38

 

102

 

 

 

2,143

 

 

 

1,993

 

 

 

Little Sheep, East Dawning, Taco Bell

 

 

10

 

35

 

 

 

257

 

 

 

250

 

 

 

2


 

 

Total Restaurant Count

 

 

 

 

Restaurant Count

 

 

 

 

 

 

As of Third Quarter End

 

 

 

 

 

 

2017

 

 

2016

 

 

 

Restaurants

 

 

 

7,747

 

 

 

7,330

 

 

 

Company-owned

 

 

 

6,149

 

 

 

5,847

 

 

 

Unconsolidated Affiliates

 

 

 

872

 

 

 

812

 

 

 

Franchisees

 

 

 

726

 

 

 

671

 

 

Restaurant Margin

 

For the third quarter, restaurant margin for Yum China increased 0.8 percentage points to 20.0%, primarily driven by same-store sales leverage and labor efficiency, partially offset by wage inflation and promotion costs.

 

Year to date, restaurant margin for Yum China increased 2.3 percentage points to 19.3%, primarily due to the impact of retail tax structure reform, and also driven by same-store sales leverage, partially offset by wage inflation and commodity inflation.

 

 

Third Quarter

 

 

 

Year to Date

 

 

 

 

2017

 

 

2016

 

 

% ppts

change

 

 

 

2017

 

 

2016

 

 

% ppts

change

 

 

 

Yum China

 

20.0

%

 

 

19.2

%

 

 

0.8

 

 

 

 

19.3

%

 

 

17.0

%

 

 

2.3

 

 

 

KFC

 

21.1

%

 

 

19.7

%

 

 

1.4

 

 

 

 

20.1

%

 

 

18.2

%

 

 

1.9

 

 

 

Pizza Hut

 

17.8

%

 

 

18.7

%

 

 

(0.9

)

 

 

 

17.6

%

 

 

14.9

%

 

 

2.7

 

 

Digital and Delivery

 

Driven by our digital initiatives, we continued to strengthen our loyalty membership programs. By the end of the third quarter, total members in our loyalty programs surpassed 120 million, including 97 million members for KFC and 30 million for Pizza Hut.

 

Mobile payments exceeded 45% of company sales in the third quarter of 2017. Over $1.2 billion in company sales were settled by cashless payment methods during the quarter.

 

Over 5,100 restaurants across China offered delivery services as of the end of the third quarter. Delivery contributed over 14% of company sales in the third quarter.

Share Repurchase Update

 

For the year to date ended August 31, 2017, we repurchased approximately 3.4 million shares for $128 million at an average price of $38.18 per share.  

 

In October 2017, the Board of Directors increased Yum China’s existing share repurchase authorization from $300 million to an aggregate of $550 million.  

Dividend

 

The Board of Directors has approved a regular quarterly cash dividend program, and declared an initial cash dividend of $0.10 per share on Yum China’s common stock, payable as of the close of business on December 21, 2017 to stockholders of record as of the close of business on November 30, 2017. Future dividends will be subject to review and approval by the Board of Directors.

 

 

3


 

Conference Call

Yum China Holdings, Inc. will host a conference call to review the Company's financial performance and strategies at 8:00 p.m. U.S. Eastern Time on Thursday, October 5, 2017 (8:00 a.m. Beijing/Hong Kong Time on Friday, October 6, 2017).  A copy of the presentation will be available on the Yum China Holdings, Inc. website, http://ir.yumchina.com.

 

U.S.:

 

+1-845-675-0437

Hong Kong:

 

+852-3018-6771

Mainland China:

 

400-6208-038 or 800-8190-121

International:

 

+65-6713-5090

Passcode:

 

Yum China

A live webcast of the call may also be accessed at https://edge.media-server.com/m6/p/62ngn9wc.

A replay of the conference call may be accessed by phone at the following numbers two hours after the call ends until 9:00 a.m. U.S. Eastern Time on Friday, October 13, 2017 (9:00 p.m. Beijing/Hong Kong Time on Friday, October 13, 2017):

 

U.S.:

 

+1-855-452-5696

International:

 

+61-2-8199-0299

Passcode:

 

82128278

 

The webcast and the playback can be accessed via the internet by visiting the Yum China Holdings, Inc. website, http://ir.yumchina.com

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as “expect,” “expectation,” “believe,” “anticipate,” “may,” “could,” “intend,” “belief,” “plan,” “estimate,” “target,” “predict,” “likely,” “will,” “should,” “forecast,” “outlook” or similar terminology. These statements are based on current estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable under the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements include, without limitation, statements regarding the future business plans and performance of Yum China, future dividends, anticipated effects of population and macroeconomic trends, the capital structure of Yum China and beliefs regarding the long-term drivers of Yum China’s business. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks and uncertainties that are difficult to predict and could cause our actual results to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or assumptions will be achieved. The forward-looking statements included in this press release are only made as of the date of this press release, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. Numerous factors could cause our actual results to differ materially from those expressed or implied by forward-looking statements, including, without limitation: whether we are able to achieve development goals at the times and in the amounts currently anticipated, if at all, the success of our marketing campaigns and product innovation, our ability to maintain food safety and quality control systems, our ability to control costs and expenses, including tax costs, as well as changes in political, economic and regulatory conditions in China. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions “Risk Factors” and “Forward-Looking Statements” in our Annual Report on Form 10-K) for additional detail about factors that could affect our financial and other results.

4


 

About Yum China Holdings, Inc.

Yum China Holdings, Inc. is a licensee of Yum! Brands in mainland China. It has exclusive rights in mainland China to KFC, China's leading quick-service restaurant brand, Pizza Hut, the leading casual dining restaurant brand in China, and Taco Bell, which opened its first restaurant in China at the end of 2016. Yum China also owns the Little Sheep and East Dawning concepts outright. Yum China is well positioned for growth thanks to its strong competitive position, integration of its brands into Chinese popular culture and consumers' daily lives, expanding geographic footprint in China and existing operational expertise. It has a strong capital position, no external debt and expects to continue growing its system sales and profit by adding new restaurants and through growing same-store sales. Yum China had more than 7,700 restaurants and more than 420,000 employees in over 1,100 cities at the end of August 2017. A new generation of younger consumers who are digitally sophisticated and brand driven are fueling growth in consumption in China. The ongoing growth of the middle class and urban population in China is expected to create the world's largest market for restaurant brands, with Yum China poised to be the market leader.

 

Analysts are invited to contact:

 

 

Christie Ju, Vice President – Finance, Investor Relations, at +86 21 2407 8090

Elaine Lai, Director – Finance, Investor Relations, at +86 21 2407 8278

 

 

 

Members of the media are invited to contact:

 

 

Forest Liu, Director, Public Affairs, at +86 21 2407 7505

 

5


 

Yum China Holdings, Inc.

Condensed Consolidated and Combined Summary of Results

(amounts in US$ million, except for number of shares and per share amounts)

(unaudited)

 

  

 

Quarter ended

 

 

% Change

 

Year to date ended

 

 

% Change

 

 

8/31/2017

 

 

8/31/2016

 

 

B/(W)

 

8/31/2017

 

 

8/31/2016

 

 

B/(W)

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company sales

 

$

1,998

 

 

$

1,848

 

 

 

8

 

 

 

$

4,818

 

 

$

4,684

 

 

 

3

 

 

Franchise fees and income

 

 

40

 

 

 

35

 

 

 

14

 

 

 

 

98

 

 

 

90

 

 

 

9

 

 

Total revenues

 

 

2,038

 

 

 

1,883

 

 

 

8

 

 

 

 

4,916

 

 

 

4,774

 

 

 

3

 

 

Costs and Expenses, Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company restaurants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Food and paper

 

 

575

 

 

 

514

 

 

 

(12

)

 

 

 

1,373

 

 

 

1,361

 

 

 

(1

)

 

Payroll and employee benefits

 

 

403

 

 

 

376

 

 

 

(7

)

 

 

 

1,018

 

 

 

963

 

 

 

(6

)

 

Occupancy and other operating expenses

 

 

622

 

 

 

602

 

 

 

(3

)

 

 

 

1,501

 

 

 

1,562

 

 

 

4

 

 

Company restaurant expenses

 

 

1,600

 

 

 

1,492

 

 

 

(7

)

 

 

 

3,892

 

 

 

3,886

 

 

 

 

 

General and administrative expenses

 

 

120

 

 

 

101

 

 

 

(18

)

 

 

 

294

 

 

 

271

 

 

 

(8

)

 

Franchise expenses

 

 

20

 

 

 

20

 

 

 

(2

)

 

 

 

48

 

 

 

51

 

 

 

6

 

 

Closures and impairment expenses, net

 

 

3

 

 

 

5

 

 

 

43

 

 

 

 

20

 

 

 

36

 

 

 

46

 

 

Refranchising gain, net

 

 

 

 

 

(4

)

 

 

(87

)

 

 

 

(2

)

 

 

(8

)

 

 

(74

)

 

Other income, net

 

 

(22

)

 

 

(17

)

 

 

25

 

 

 

 

(50

)

 

 

(44

)

 

 

14

 

 

Total costs and expenses, net

 

 

1,721

 

 

 

1,597

 

 

 

(8

)

 

 

 

4,202

 

 

 

4,192

 

 

 

 

 

Operating Profit

 

 

317

 

 

 

286

 

 

 

11

 

 

 

 

714

 

 

 

582

 

 

 

23

 

 

Interest income, net

 

 

6

 

 

 

3

 

 

NM

 

 

 

 

13

 

 

 

7

 

 

 

77

 

 

Income Before Income Taxes

 

 

323

 

 

 

289

 

 

 

12

 

 

 

 

727

 

 

 

589

 

 

 

23

 

 

Income tax provision

 

 

(102

)

 

 

(87

)

 

 

(19

)

 

 

 

(213

)

 

 

(165

)

 

 

(29

)

 

Net income – including noncontrolling interests

 

 

221

 

 

 

202

 

 

 

9

 

 

 

 

514

 

 

 

424

 

 

 

21

 

 

Net income – noncontrolling interests

 

 

10

 

 

 

10

 

 

 

6

 

 

 

 

21

 

 

 

10

 

 

NM

 

 

Net Income – Yum China Holdings, Inc.

 

$

211

 

 

$

192

 

 

 

9

 

 

 

$

493

 

 

$

414

 

 

 

19

 

 

Effective tax rate

 

 

31.7

%

 

 

29.8

%

 

 

(1.9

)

ppts.

 

 

29.3

%

 

 

28.0

%

 

 

(1.3

)

ppts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

 

$

0.55

 

 

$

0.53

 

 

 

4

 

 

 

$

1.28

 

 

$

1.14

 

 

 

12

 

 

Weighted average shares outstanding

 

 

385,836,842

 

 

 

363,758,219

 

 

NM

 

 

 

 

387,028,586

 

 

 

363,758,219

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Common Share

 

$

0.53

 

 

$

0.53

 

 

 

 

 

 

$

1.24

 

 

$

1.14

 

 

 

9

 

 

Weighted average shares outstanding

 

 

398,497,353

 

 

 

363,758,219

 

 

NM

 

 

 

 

397,385,512

 

 

 

363,758,219

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company sales

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

Food and paper

 

 

28.8

 

 

 

27.8

 

 

 

(1.0

)

ppts.

 

 

28.5

 

 

 

29.1

 

 

 

0.6

 

ppts.

Payroll and employee benefits

 

 

20.1

 

 

 

20.4

 

 

 

0.3

 

ppts.

 

 

21.1

 

 

 

20.6

 

 

 

(0.5

)

ppts.

Occupancy and other operating expenses

 

 

31.1

 

 

 

32.6

 

 

 

1.5

 

ppts.

 

 

31.1

 

 

 

33.3

 

 

 

2.2

 

ppts.

Restaurant margin

 

 

20.0

%

 

 

19.2

%

 

 

0.8

 

ppts.

 

 

19.3

%

 

 

17.0

%

 

 

2.3

 

ppts.

Operating margin

 

 

15.9

%

 

 

15.5

%

 

 

0.4

 

ppts.

 

 

14.8

%

 

 

12.4

%

 

 

2.4

 

ppts.

 

Percentages may not recompute due to rounding.

6


 

Yum China Holdings, Inc.

KFC Operating Results

(amounts in US$ million)

(unaudited)

 

  

 

Quarter ended

 

 

% Change

 

Year to date ended

 

 

% Change

 

 

8/31/2017

 

 

8/31/2016

 

 

B/(W)

 

8/31/2017

 

 

8/31/2016

 

 

B/(W)

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company sales

 

$

1,385

 

 

$

1,263

 

 

 

10

 

 

 

$

3,342

 

 

$

3,238

 

 

 

3

 

 

Franchise fees and income

 

 

38

 

 

 

34

 

 

 

13

 

 

 

 

93

 

 

 

87

 

 

 

7

 

 

Total revenues

 

 

1,423

 

 

 

1,297

 

 

 

10

 

 

 

 

3,435

 

 

 

3,325

 

 

 

3

 

 

Costs and Expenses, Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company restaurants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Food and paper

 

 

408

 

 

 

365

 

 

 

(11

)

 

 

 

989

 

 

 

970

 

 

 

(2

)

 

Payroll and employee benefits

 

 

263

 

 

 

243

 

 

 

(8

)

 

 

 

666

 

 

 

625

 

 

 

(7

)

 

Occupancy and other operating expenses

 

 

422

 

 

 

405

 

 

 

(4

)

 

 

 

1,016

 

 

 

1,054

 

 

 

4

 

 

Company restaurant expenses

 

 

1,093

 

 

 

1,013

 

 

 

(8

)

 

 

 

2,671

 

 

 

2,649

 

 

 

(1

)

 

General and administrative expenses

 

 

42

 

 

 

39

 

 

 

(7

)

 

 

 

106

 

 

 

101

 

 

 

(6

)

 

Franchise expenses

 

 

19

 

 

 

19

 

 

 

(1

)

 

 

 

46

 

 

 

50

 

 

 

7

 

 

Closures and impairment expenses, net

 

 

1

 

 

 

4

 

 

 

40

 

 

 

 

10

 

 

 

25

 

 

 

58

 

 

Other income, net

 

 

(18

)

 

 

(16

)

 

 

14

 

 

 

 

(45

)

 

 

(38

)

 

 

18

 

 

Total costs and expenses, net

 

 

1,137

 

 

 

1,059

 

 

 

(7

)

 

 

 

2,788

 

 

 

2,787

 

 

 

 

 

Operating Profit

 

$

286

 

 

$

238

 

 

 

20

 

 

 

$

647

 

 

$

538

 

 

 

20

 

 

Company sales

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

Food and paper

 

 

29.5

 

 

 

29.0

 

 

 

(0.5

)

ppts.

 

 

29.6

 

 

 

30.0

 

 

 

0.4

 

ppts.

Payroll and employee benefits

 

 

19.0

 

 

 

19.2

 

 

 

0.2

 

ppts.

 

 

19.9

 

 

 

19.3

 

 

 

(0.6

)

ppts.

Occupancy and other operating expenses

 

 

30.4

 

 

 

32.1

 

 

 

1.7

 

ppts.

 

 

30.4

 

 

 

32.5

 

 

 

2.1

 

ppts.

Restaurant margin

 

 

21.1

%

 

 

19.7

%

 

 

1.4

 

ppts.

 

 

20.1

%

 

 

18.2

%

 

 

1.9

 

ppts.

Operating margin

 

 

20.7

%

 

 

18.8

%

 

 

1.8

 

ppts.

 

 

19.3

%

 

 

16.6

%

 

 

2.7

 

ppts.

 

Percentages may not recompute due to rounding.

7


 

Yum China Holdings, Inc.

Pizza Hut Operating Results

(amounts in US$ million)

(unaudited)

 

  

 

Quarter ended

 

 

% Change

 

Year to date ended

 

 

% Change

 

 

8/31/2017

 

 

8/31/2016

 

 

B/(W)

 

8/31/2017

 

 

8/31/2016

 

 

B/(W)

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company sales

 

$

603

 

 

$

573

 

 

 

5

 

 

 

$

1,449

 

 

$

1,405

 

 

 

3

 

 

Franchise fees and income

 

 

1

 

 

 

1

 

 

 

37

 

 

 

 

2

 

 

 

2

 

 

 

31

 

 

Total revenues

 

 

604

 

 

 

574

 

 

 

5

 

 

 

 

1,451

 

 

 

1,407

 

 

 

3