2010 Report Card |
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| Target |
Actual |
Commentary |
| |
Average Same-Store
Sales Growth |
 3% to 5% |
| |
 2% to 4% |
|
|
| Average same-store sales growth was driven by menu innovation, promotional programs, and operational initiatives, such as our hospitality program, and pricing. In addition, the core markets in our U.S. business had strong same-store sales growth in the latter half of 2010. Cold Stone Creamery® continues to be a contributor to same-store sales growth, but to a lesser extent than in 2009. |
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 |
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Operating Income
Growth*
(on a 52-week basis) |
| 8% to 10% |
| |
*Our 2010 performance
includes significant items. See commentary. |
|
|
| Operating income includes $361.1 million from the gain on sale of our 50% joint-venture interest in Maidstone Bakeries, partially offset by our $30.0 million allocation to Restaurant Owners, related to the sale. The large gain was also partially offset by asset impairment and related closure costs of $28.3 million in the New England region and the impact on year-over-year comparisons of the 53rd week of operations in 2009. Strong same-store sales growth in both Canada and the U.S. was one of the primary drivers of our higher operational performance, primarily benefitting our rent and royalties and our distribution operations. Please refer to "Selected Operating and Financial Highlights" section of our Form 10-K for adjusted operating income information. |
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Restaurant Development |
130 to 150
restaurants |
| |
40 to 60
restaurants |
|
|
|
|
149
restaurants |
| |
|
|
96
restaurants |
|
Canadian and U.S. new restaurant development, including self-serve kiosks, was within the targeted range. Included in our 2010 new restaurant development were 20 and 52 new self-serve kiosks in Canada and U.S., respectively.
In addition, we converted 66 and 9 existing Tim Hortons locations in Canada and the U.S., respectively, to include Cold Stone Creamery®. A total of 27 new Cold Stone Creamery® co-branded restaurants opened (12 in Canada, 15 in U.S.). |
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Capital Expenditures |
$180 to $200
million |
| |
|
|
|
|
$132.9
million |
| |
|
|
| Capital expenditures were lower than the targeted range primarily due to changes in restaurant development formats and a higher number of capital leases versus purchase transactions within our 2010 restaurant developments. We entered into $29.2 million of capital lease obligations in 2010. |
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Earnings per Share*
(fully diluted) |
| $1.95 to $2.05 |
| * Our 2010 performance includes significant items. See commentary. |
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|
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| We significantly exceeded targeted EPS, primarily due to the $361.1 million gain on sale of our interest in Maidstone Bakeries, which increased EPS by approximately $1.72 per share, net of our $30.0 million commitment to Restaurant Owners related to the sale, and net of tax. Partially offsetting these increases was the asset impairment charge in the New England region and related closure costs recognized in the latter half of the year, which reduced EPS by approximately $0.16 per share. EPS growth also benefited from 3.5% fewer shares outstanding in 2010 versus 2009 due to our share repurchase programs. |
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