SYSTEM SALES decreased $356 million or 5% in 1998. Excluding the negative impact of foreign currency translation, system sales increased $360 million or 5%. The increase was driven by new unit development, primarily in Asia, partially offset by store closures in other countries/markets.

System sales increased $71 million or 1% in 1997. Excluding the negative impact of foreign currency translation, system sales increased $411 million or 6% in 1997. This growth was driven by new unit development, partially offset by store closures. Franchisee activity drove system unit development with approximately 50% of that activity occurring in Asia.

REVENUES decreased $280 million or 12% in 1998. Excluding the negative impact of foreign currency translation, revenues decreased $86 million or 4%. Company sales decreased $279 million or 13% in 1998. Excluding the negative impact of foreign currency translation, Company sales decreased $107 million or 5%. The decrease in 1998 was driven by the portfolio effect, partially offset by new unit development and effective net pricing. Franchise and license fees decreased $1 million or less than 1%. Excluding the negative impact of foreign currency translation, franchise and license fees increased $21 million or 11%. The increase was primarily driven by new unit development and units acquired from us, partially offset by store closures by franchisees and licensees.

Revenues increased $12 million or less than 1% in 1997. Excluding the negative impact of foreign currency translation, revenues increased $93 million or 4%. This increase relates primarily to higher effective net pricing, new unit development in Asia and an increase in franchise fees attributable to development, partially offset by store closures. Company sales in 1997 decreased $5 million or less than 1%. Excluding the negative impact of foreign currency translation, Company sales increased $66 million or 3%. This increase was driven primarily by higher effective net pricing and unit development, partially offset by the effect of refranchising our restaurants in New Zealand through an initial public offering in the second quarter. Franchise and license fees increased $17 million or 9% in 1997 primarily driven by new unit development and units acquired from us, partially offset by store closures by franchisees and licensees.