EX-99.7 8 exhibit99-7_01272011.htm EXHIBIT 99.7 exhibit99-7_01272011.htm
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Franchisee Health
& Development
David Karam
President
 
 
 
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2
 
 
 
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3
 
 
 
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4
Improved Restaurant Margins
2008
2010
+320 bps
 
 
 
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5
— Monthly store level business reviews
— National contracting for repair and maintenance
— Better utility management
— Improved reporting tools to control food waste
— More efficient labor usage
Achieving Margin Improvement
through Managing Expenses
 
 
 
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more effective benchmarking
fosters innovation
identifies best practices
identifies strong performers
 
 
 
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Pricing Model - Example
Projected Impact of Price Increase per Store - U.S. Company Stores
Stores Expected to
See Sales Decline
Number of Sites
252
503
755
1,006
1,258
Breakeven Point
 
 
 
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Sales and Gross Profit Projection - Example
 
 
Annual Impact
without Pricing Model
 
Annual Impact
with Pricing Model
SALES
 
 
 
 
78% stores benefit from price increase
 
$ 8,900,000
 
$ 8,900,000
22% stores hurt by price increase
 
 (5,100,000)
 
 -
Total Sales
 
$ 3,800,000
 
$ 8,900,000
Total % impact on sales
 
0.2%
 
0.6%
 
 
 
 
 
OPERATING PROFIT
 
 
 
 
78% stores benefit from price increase
 
$ 6,700,000
 
$ 6,700,000
22% stores hurt by price increase
 
 (3,600,000)
 
 
Total Operating Profit
 
$ 3,100,000
 
$ 6,700,000
 
 
 
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Generating Significant Savings
 
 
 
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Development Opportunity
North American Restaurant Count - FY 2009
6,248
15,480
7,549
 
 
 
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Managing Our Restaurant Portfolio
New Unit
Capital
Remodeling
Capital
New Unit
Capital
Remodeling
Capital
COMPANY
RESTAURANTS
FRANCHISE
RESTAURANTS
A
B
C
D
E
A
B
C
D
E
Capital Gains
New
Franchisees
Cash
Exit
 
 
 
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CRITICAL
MEASURES
Financial Health
of Franchise
System
SALES
 
 
 
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U.S. Franchise Operating Profit and Cash Flow
+150 bps
2008
2009
+65%
Operating Profit
EBITDA
 
 
 
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2003
2004
2005
2006
2007
2008
2009
 
 
 
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Facility
Remodels
Next Generation
 
 
 
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Key Growth Drivers
— Grow same-store sales
 
 
 
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Key Growth Drivers
— Grow same-store sales
— Expand dayparts
 
 
 
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Key Growth Drivers
— Grow same-store sales
— Expand dayparts
— New stores, remodels and
 portfolio management
 
 
 
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Key Growth Drivers
— Grow same-store sales
— Expand dayparts
— New stores, remodels and
 portfolio management
— International expansion