News

Popeyes early financials show healthy growth

January 10, 2017

In unaudited Q4 and FY 2016 financial results, Popeyes Louisiana Kitchen reported Q4 global same-store sales growth of 2.8 percent and global same-store sales growth for the year of 1.7 percent, according to a news release for the quarter ending, Dec. 25, 2016. The company said domestically, same-store sales grew 3 percent with a fourth quarter compounded two-year global same-store sales growth of 5.7 percent and an annual compounded two-year global same-store sales growth of 7.7 percent. Other significant results reported include:

• EPS expected in the range of $1.99 to $2.01 for fiscal 2016, including asset impairment and other non-operating items' impacts.
• Adjusted earnings per diluted share in range off $2.10 to $2.12 expected, compared to FY 2015 amount of $1.91 and company's previous guidance for adjusted EPS of $2.10 to $2.15.
• 52 new domestic and 37 new international restaurants added for a total of 216 opening last year, compared with 219 opening in 2015.
• 57 restaurants permanently closed in 2016, for 159 net new openings, compared to 166 in 2015.

"We are pleased to report another year of strong growth for the Popeyes brand," Popeyes CEO Cheryl Bachelder said in a news release. "Our footprint continues to expand with 216 net new global openings —118 domestic and 98 international.

"We are excited about our future and achieving our long-term strategic growth goals.”

Popeyes said it is in discussions with its lenders regarding a $150 million expansion of its current $250 million revolving credit facility. The intention is to increase total leverage ratio to 2.5 to 3.5 times by the end of 2017, according to the news release.