Net income was negatively impacted versus the prior year quarter by continued challenges in the domestic environment and resulting decreases in domestic same store sales and supply chain volumes. The International division continued its strong performance, posting its 59th consecutive quarter of same store sales growth, up 5.4% during the third quarter of 2008.
Third Quarter Highlights:
(dollars in millions,
except per share data) Third Third First Three First Three
Quarter of Quarter of Quarters of Quarters of
2008 2007 2008 2007
Net income $10.1 $11.0 $42.9 $21.7
Weighted average
diluted shares 58,042,743 63,971,505 58,859,220 64,534,801
Diluted earnings per
share, as reported $0.17 $0.17 $0.73 $0.34
Items affecting
comparability
(see section below) $(0.05) $- $(0.17) $0.49
Diluted earnings
per share, as adjusted $0.13 $0.17 $0.56 $0.82
Diluted EPS was $0.17 on an as-reported basis for the third quarter, flat from the as-reported prior year period. However, excluding items affecting comparability, diluted EPS declined $0.04, primarily due to lower operating income from domestic operations.
Third Quarter Third Quarter
of 2008 of 2007
Same store sales growth: (versus
prior year period)
Domestic Company-owned stores (3.4)% +0.8%
Domestic franchise stores (6.4)% (2.0)%
Domestic stores (6.1)% (1.6)%
International stores +5.4% +8.3%
Global retail sales growth: (versus
prior year period)
Domestic stores (5.8)% (0.4)%
International stores +14.1% +20.4%
Total +2.4% +7.2%
Domestic Domestic Total
Company-owned Franchise Domestic International
Stores Stores Stores Stores Total
Store counts:
Store count at
June 15, 2008 515 4,592 5,107 3,564 8,671
Openings 1 34 35 84 119
Closings - (56) (56) (8) (64)
Transfers (4) 4 - - -
Store count at
September 7, 2008 512 4,574 5,086 3,640 8,726
Third quarter 2008
net growth (3) (18) (21) 76 55
Trailing four
quarters net
growth (53) 3 (50) 266 216