Popeyes Profits Fall $2.5 Million

    Industry News | November 14, 2008
    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.

    News and information presented in this release has not been corroborated by WTWH Media LLC.