News

Pizza Hut franchisee reports strong 2010 results

February 21, 2011

NPC International Inc., the world’s largest Pizza Hut franchisee with 1,136 restaurants and delivery units in 28 states, has reported results for its fourth fiscal quarter and year ended Dec. 28.

Fourth quarter highlights include:

• Comparable store sales increased 8.8 percent, rolling over a decrease of -10.5 percent last year.
• Adjusted EBITDA of $24.5 million was 29 percent greater than last year.
• Net income of $3.4 million was $3.7 million greater than last year’s net loss of $0.3 million. 
• Cash balances increased to $44.2 million, up from $41.4 million last quarter.

2010 highlights include:

• Comparable store sales from continuing operations increased 10.1 percent rolling over a decrease of -10.2 percent from last year.
• Adjusted EBITDA from continuing operations of $105.5 million increased by $11 million or 12 percent from last year.
• Free Cash Flow of $57.8 million was $20.6 million or 55 percent greater than last year.
• Net Income of $21.5 million was 107 percent greater than last year’s net income of $10.4 million.
• Debt has been reduced by $31.3 million and cash balances have increased by $29.5 million from last fiscal year end.

“We are pleased to post record EBITDA of $105.5 million, an impressive 11 percent increase from last year’s $94.6 million. This record was achieved on the foundation of strong sales growth and excellent operational controls exhibited by our restaurant teams,” said Jim Schwartz, NPC’s president and CEO.

“Our margins benefited from the transition to simplified pricing and product innovation as exhibited by our sequentially lower cost of sales as compared to the first half of the year and lower year-over-year direct labor and other restaurant operating expenses."

In 2011, Schwartz predicts a strong economy, however no relief from the competitive environment. 

“Specifically, we expect that our fiscal 2011 comparable store sales growth will revert closer to traditional levels associated with a mature restaurant brand rolling over last year’s exceptional sales growth given the continued competitive environment,” he said.