STRATEGIC PARTNERS
May 25, 2011
AFC Enterprises Inc., the franchisor and operator of Popeyes restaurants, reported results for its fiscal first quarter which ended April 17. Highlights include an increase in net income to $7.2 million, or 28 cents per diluted share, compared to $5.8 million, or 23 cents per diluted share, for the same period last year.
This improvement was primarily due to stronger same-store sales and lower interest expense.
Additionally, global systemwide sales increased 6.9 percent compared to a 2.1 percent increase last year. Same-store sales were up 3.9 percent globally, versus a 0.3 percent decrease last year.
Domestically, same-store sales jumped 3.9 percent compared to a 0.4 percent decrease in 2010.
The Popeyes system opened 32 restaurants and permanently closed 14 restaurants, resulting in 18 net openings compared to 5 net openings last year.
Operating EBITDA was $13.3 million, at 28.4 percent of total revenue, compared to first quarter 2010 of $13.3 million, at 30.4 percent of total revenue. The decrease as a percent of total revenue was primarily due to investments in general and administrative expenses.
"We delivered another strong quarter of positive results operationally and financially. This growth was primarily driven by global top-line sales momentum from both same-store sales and new unit growth, as we continue to focus on our strategic roadmap. Our restaurants are managing in a tough commodity environment by keeping sales strong, selectively raising prices, and tightly controlling labor. We remain on track to deliver our 2011 goals," said Cheryl Bachelder, AFC Enterprises CEO.
Wicked Chicken returns
Starting May 30, Popeyes will promote Wicked Chicken, one of its most successful LTOs. Supported with national media, this promotion will feature Wicked Chicken, Cajun fries, a buttermilk biscuit, ranch dipping sauce and a mini bottle of TABASCO Pepper Sauce for $3.99.
Popeyes Wicked Chicken features thin strips of all-white meat chicken marinated with authentic Louisiana seasonings, hand-battered and breaded in the restaurants, and served up crispy, twisty and curly.
"Our guests loved the portability and flavor of Wicked Chicken last year. Its Cajun kick really complements our signature sides and satisfies the craving for a quick snack full of flavor," said Amy Alarcon, director of culinary innovation. "The heat of the Wicked Chicken matches perfectly with the bold, sweet flavors of Popeyes Cane Sweet Iced Tea — a blend of black and orange pekoe tea, sweetened with Pure Cane Sugar."
