AFC Enterprises, franchisor and operator of Popeyes Louisiana Kitchen, reported an 8.2 percent system-wide sales increase for the third quarter ended Oct. 3.
This rise is compared to a minor 0.5 percent increase for 3Q 2009.
Broken down, international sales increased 5.2 percent, compared to a 0.3 percent decrease last year; and domestic sales were up 5.3 percent, also compared to a 0.3 percent decrease for 3Q 2009.
During this quarter, Popeyes opened 24 units and closed 18.
AFC attributes the performance to its Bonafide bone-in chicken offerings and promotional efforts, which included a national taste test against KFC's Original Recipe Fried Chicken. The taste test and declaration of a win was supported by Popeyes' largest marketing and advertising push in its history.
"We are delighted with our third quarter earnings performance which was driven by strong positive same-store sales. During the third quarter, we announced Popeyes beat KFC in a U.S. taste test," said AFC Enterprises CEO Cheryl Bachelder. "This national campaign was one of our most successful ever. I am proud of our management team and the Popeyes system for these results that continue to steadily outperform our competitors."
AFC Enterprises continues to focus on its four pillars of strategic growth, including:
- Build the Popeyes brand. On the heels of the taste test campaign, Popeyes is currently promoting its second annual Crawfish Festival, which includes three new menu items -- Crawfish Po'Boy, Crawfish Traveler and Crawfish Etouffee.
- Run great restaurants. Third quarter Guest Experience Monitor (GEM) "% Delighted" scores were at 73 percent, up 6 percent from last year. Speed of service also improved by 10 percent from last year.
- Strengthen unit economics. Popeyes decreased food costs by 2.5 percent from 3Q 2009, thanks to renegotiating vendor contracts, restaurant efficiency initiatives and a decline in commodity costs.
- Ramp up new unit growth. The company's goal is to open up to 130 new units globally this year.
