We evaluate our restaurants and assess our business based on the following operating metrics.
System sales growth refers to the change in sales at all company-owned and franchise restaurants in one period
from the same period in the prior year. Comparable sales growth refers to the change in restaurant sales in one
period from the same prior year period for restaurants that have been open for thirteen months or longer.
Company-owned restaurants refranchised during a quarterly period are included with franchise restaurants for
the purpose of calculating comparable sales growth for the quarter. Comparable sales and sales growth are
measured on a constant currency basis, which means that results exclude the effect of foreign currency
translation and are calculated by translating current year results at prior year exchange rates. We analyze key
operating metrics on a constant currency basis as this helps identify underlying business trends, without
distortion from the effects of currency movements (“FX Impact”).
Franchise sales represent sales at all franchise restaurants and are revenues to our franchisees. We do not record
franchise sales as revenues; however, our franchise revenues include royalties based on a percentage of franchise
sales. Net refranchisings refer to sales of company-owned restaurants to franchisees, net of acquisitions of
franchise restaurants by us.