News
Popeyes sees 38.5% dip in profits for Q3
November 12, 2008
ATLANTA — AFC Enterprises, Inc., the franchisor and operator of Popeyes restaurants, reported a drop in profits of 38.5 percent for the third quarter ended Oct. 5.
Total global same-store sales were down 1.9 percent compared to a decrease of 1.7 percent last year.Total domestic same-store sales decreased 2.8 percent compared to a decrease of 1.9 percent last year. However, international same-store sales were up 7.4 percent compared to an increase of 0.5 percent last year.
Net income for the quarter was $4 million, down 38.5 percent compared with net income of $6.5 million in the same period last year, which was impacted by a $1.3 million pre tax of other non-operating income. Year to date, net income was $17 million, down 12.8 percent compared with net income of $19.5 million last year.
Total revenues for the quarter were $38.3 million, down 1.5 percent compared with $38.9 million in the same period last year. Year-to-date revenues were up 2 percent to $130.9 million compared with $128.2 million last year.
The Popeyes system opened 28 and closed 24 restaurants, bringing the total net unit count to 1,905 compared to 1,881 last year.As part of the company's strategic initiative to re-franchise company-operated restaurants, the company completed the re-franchising sale of 11 restaurants in the Atlanta market, which negatively impacted revenues.
During the quarter, Popeyes launched new national cable advertising strategy in support of it new value, portable and lunch menu items. The first media flight introduced Popeyes new Big Deals value sandwiches and wraps priced at $1.49.
Related Media
Subscribe
Get the latest news and resources from QSR Web.
