Industry News | November 14, 2008

Popeyes Profits Fall $2.5 Million

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.

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