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Highlights of Pizza Hut’s Item 19 Financial Performance Representations (2014 FDD) – Part 2

Of the 115 Delco Delivery and Delivery-Carryout company-owned Pizza Hut Restaurants that are included in this financial performance representation, 56 or 49% attained or exceeded the stated average gross sales result and 59 or 51% did not attain the stated results.

Of the 121 Delco Lite Delivery and Delivery-Carryout company-owned Pizza Hut Restaurants that are included in this financial performance representation, 57 or 47% attained or exceeded the stated average gross sales result and 64 or 53% did not attain the stated results.

“Average Gross Sales” is the mathematical average of the total annual cash or other payments received for the sale or use of any products, goods, or services that were sold from the Pizza Hut Restaurants included within the group, less applicable discounts, allowances, and sales taxes.

“Average Cost of Sales” is the mathematical average of the total annual delivered cost of food, beverages, paper, and promotional items to the Pizza Hut Restaurants included within the group, expressed as a percentage of Average Gross Sales.

“Average Cost of Labor” is the mathematical average of the total annual hourly labor costs, the salaries and related costs of management, payroll taxes, health insurance, vacation pay, sick pay, bonuses, and workers’ compensation insurance for all employees at the Pizza Hut Restaurants included within the group, expressed as a percentage of Average Gross Sales.

“Average Cost of Advertising” is the mathematical average of the total advertisement expenses spent on national, co-op, and local levels at the Pizza Hut Restaurants included within the group, expressed as a percentage of Average Gross Sales.

“Average Semi-Variable Costs” is the mathematical average of the total building repairs; plumbing; landscaping; trash removal; refrigeration repair costs; gas; electricity; water; telephone; driver reimbursements for deliveries; small wares; cleaning supplies; uniforms; customer reimbursement; restaurant forms; and check, credit card, and cash loss at the Pizza Hut Restaurants included within the group, expressed as a percentage of Average Gross Sales.

“Average Other Semi-Variable Costs” is the mathematical average of the total preventive maintenance costs of equipment and parking lots; order-entry terminal related expenses; security equipment and alarm; property, liability, and auto insurance premiums; and credit card fees and bank charges at the Pizza Hut Restaurants included within the group, expressed as a percentage of Average Gross Sales.

“Average Other Fixed Costs” is the mathematical average of the total equipment rentals, satellite fees, real estate taxes and licenses, and other related fees at the Pizza Hut Restaurants included within the group, expressed as a percentage of Average Gross Sales.

“Average Rent Costs” is the mathematical average of the rent and common area maintenance expenses on leased properties at the Pizza Hut Restaurants included within the group, expressed as a percentage of Average Gross Sales.

“Average EBITDA” is the mathematical average of all expenses, not including any depreciation and amortization, or any income taxes, subtracted from Average Gross Sales at the Pizza Hut Restaurants included within the group, expressed as a percentage of Average Gross Sales.

2013 Average Performance of Company-Owned Delivery/Carry-Out Pizza Hut Restaurants Open for at Least One Year as of December 31, 2013

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