AFC Enterprises, Inc. (Nasdaq: AFCE – News), the franchisor and operator of Popeyes restaurants, reported results for its fiscal third quarter ended October 5, 2008.

Third Quarter 2008 Highlights Compared to Third Quarter 2007:

— Net income was $4.0 million, or $0.16 per diluted share, compared to
$6.5 million, or $0.23 per diluted share, last year. Excluding the
pre-tax impact of $1.3 million of other non-operating income last year,
net income last year would have been $5.6 million, or $0.20 per diluted
share.

— Total system-wide sales growth was flat to last year.

— Total domestic same-store sales decreased 2.8 percent compared to a
decrease of 1.9 percent last year. International same-store sales
increased 7.4 percent compared to an increase of 0.5 percent last year.
Total global same-store sales decreased 1.9 percent compared to a
decrease of 1.7 percent last year.

— The Popeyes system opened 28 and closed 24 restaurants, bringing total
net unit count to 1,905 compared to 1,881 last year.

— Consistent with 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. The company received
$3.5 million in cash from the sale proceeds and fees associated with
new franchise and development agreements.

— The company made $2.8 million in debt repayments under its 2005 Credit
Facility. The company’s cash balance at the end of third quarter was
$10.4 million.