Popeyes Louisiana Kitchen, Inc., the franchisor and operator of Popeyes restaurants, reported results for fiscal 2016 that ended December 25, 2016.
“We are pleased to report another year of strong performance at Popeyes,” says Cheryl Bachelder, Popeyes chief executive officer. “Driving the top line through a careful balance of innovative offerings and core menu value has created momentum in the fourth quarter, despite challenging market conditions. In 2016, we delivered global same-store sales growth of 1.7 percent, our eight consecutive year of positive same-store sales growth, and 216 new restaurant openings around the world."
Fiscal 2016 Highlights
System Sales Performance:
Global system-wide sales increased 7.4 percent, for a two-year compounded growth rate of over 20 percent.
Global same-store sales increased 1.7 percent in 2016, compared to a 5.9 percent increase last year, for a two-year compounded growth rate of 7.7 percent.
Total domestic same-store sales increased 1.4 percent, compared to 5.7 percent last year, the eighth consecutive year of positive same-store sales growth.
International same-store sales increased 4.4 percent, compared to 7 percent last year, the 10th consecutive year of positive same-store sales growth.
Popeyes market share of the domestic Chicken quick service restaurant segment reached 26.5 percent for 2016, an increase from 25.5 percent in 2015.
The Popeyes system opened 216 restaurants, which included 118 domestic and 98 international restaurants, compared to 219 total openings in the prior year.
Net restaurant openings were 158, compared to 166 net restaurant openings in the prior year.
Key Financial Metrics:
Total revenues increased approximately 3.8 percent to $268.9 million in 2016, from $259.0 million in 2015.
Company-operated restaurant operating profit was $20.7 million, or 19.1 percent of sales, compared to $21.9 million, or 20 percent of sales in 2015.
Fourth Quarter 2016 Highlights:
Reported net income was $9.2 million, or $0.44 per diluted share, compared to $9.6 million, or $0.42 per diluted share in the fourth quarter 2015. Adjusted earnings per diluted share were $0.48, compared to $0.42 in 2015, representing an increase of 14.3 percent.
Global same-store sales increased 2.8 percent.
Total domestic same-store sales increased 3 percent, compared to 2 percent in the fourth quarter of 2015, for a two-year compounded growth rate of 5.1 percent.
International same-store sales increased 1.6 percent, compared to 8.5 percent in the fourth quarter of 2015, for a two-year compounded growth rate of 10.2 percent.
The Popeyes system opened 89 new restaurants compared to 82 new restaurants in the fourth quarter of 2015.
Popeyes Louisiana Kitchen, Inc. is the franchisor and operator of Popeyes restaurants, the world's second-largest quick-service chicken concept based on number of units. As of December 25, 2016, Popeyes had 2,688 operating restaurants in the U.S., three territories, and 25 foreign countries. The company's primary objective is to deliver sales and profits by offering excellent investment opportunities in its Popeyes brand and providing exceptional franchisee support systems and services to its owners.