Company Hosts Analyst/Investor Conference
LOUISVILLE, Ky.–(BUSINESS WIRE)–Tricon Global Restaurants, Inc. (NYSE:YUM – news) today will host its annual Analyst/Investor Conference, during which the company will reconfirm full-year 2001 earnings expectations of at least $3.18 in ongoing operating earnings per share (EPS). The company also will review its strategies to sustain continued long-term growth in ongoing operating EPS and its 2002 earnings expectations.
For 2002, the Company expects ongoing operating EPS to be $3.53 to $3.63. The 2002 forecast includes an estimated $.13 benefit to EPS, which is driven by the adoption of FAS141/142 (cessation of intangible asset amortization).
“Since our spin-off in ’97, we have successfully restructured our business, improved all key financial measures and more than doubled ongoing operating earnings per share. We are excited about 2002 and beyond because of the unique opportunities we have to drive revenue growth, earnings growth and maximize shareholder value,” said David Novak, Chairman and Chief Executive Officer.
In 2002, the Company is targeting:
Worldwide revenue growth of 6% to 7%.
Worldwide system-sales growth of 4% to 5%.
U.S. blended same-store sales increase of 2%.
It will open over 1,400 new restaurants worldwide including 1,000 Internationally.
It will add over 325 multibranded restaurants through conversions of existing restaurants and new-restaurant builds.
Franchise fees will continue to grow and are expected to reach $850MM.
Restaurant margin will increase 60 to 70 basis points including an estimated 50 basis-point benefit from the adoption of FAS141/142.
General and administrative costs will be up slightly in dollar terms.
Ongoing operating profit will increase 13% including an estimated 3-pt benefit from the adoption of FAS141/142.
Interest expense will be even with 2001.
The effective tax rate on ongoing operating earnings is expected to be 34% to 35%.
Average shares outstanding should increase 1% or by roughly 2 million shares.
Return on invested capital will remain strong at 18% and total cash generated prior to capital expenditures will be about $1.1 billion.
Tricon will Web cast the conference, beginning at 8:45 a.m. EST. Interested parties can access the Web cast through Tricon’s Web site, www.triconglobal.com. Throughout the day, Tricon senior leaders will provide details on its five major growth drivers: (1) Global Restaurant Expansion, (2) Multibranding, (3) Improved Restaurant Operations, (4) Brand Differentiation, and (5) Strong Cash Generation and High Returns.
Tricon is the world’s largest restaurant company in terms of system restaurants with over 30,000 restaurants around the world in over 100 countries and territories. Tricon’s three brands, KFC, Pizza Hut and Taco Bell, are the global leaders of the chicken, pizza and Mexican restaurant categories, respectively. Total worldwide system sales were over $22 billion in 2000.
A copy of the presentation to the Analyst/Investor Conference will be available on the Company’s Web site at www.triconglobal.com by 4:00 p.m. EST December 13.