AFC Enterprises, Inc., the franchisor and operator of Popeyes restaurants, reported results for its fiscal second quarter which ended July 13, 2008.Second Quarter 2008 Highlights compared to Second Quarter 2007:

• Net income was $6.6 million, or $0.26 per diluted share, compared to $6.6 million, or $0.22 per diluted share, last year. Excluding the pre-tax impact of $3.8 million from other non-operating income, net income would have been $4.3 million, or $0.17 per diluted share.
• Total system-wide sales increased by 1.5 percent compared to 2.9 percent last year.
• Total domestic same-store sales decreased 1.7 percent compared to a decrease of 2.1 percent last year. International same-store sales increased 1.7 percent compared to an increase of 1.7 percent last year. Total global same-store sales decreased 1.4 percent compared to a decrease of 1.7 percent last year.
• The Popeyes system opened 32 and closed 31 restaurants, bringing total net unit count to 1,901 compared to 1,878 last year.
• The Company received $12.3 million for a net favorable settlement related to a director and officers insurance claim previously described in the Company’s public filings.
• The Company’s board of directors authorized the negotiation of definitive agreements to refranchise and sell company-operated restaurant assets in Atlanta, Georgia and Nashville, Tennessee. As a result, the Company recorded an $8.1 million impairment charge associated with the restaurant assets.
• Year-to-date, the Company repurchased 2.1 million shares of common stock for $18.9 million. During the quarter, the Company recorded an additional $2.3 million payment for the final installment of the previously announced accelerated stock repurchase program.

Cheryl Bachelder, AFC Chief Executive Officer, stated, “We were pleased with our earnings performance for the second quarter. Our same-store sales continue to be impacted by the current economic environment; however, we believe our marketing and messaging helped us during the quarter as our comparable sales performance continued to outpace the chicken QSR segment. As we move into the second half of this year, we are excited to be rolling-out three new menu platforms designed to generate incremental sales with a focus on portability, value, and lunch occasions.”

As a part of its strategic plan, Popeyes is embarking on a comprehensive brand transformation that emphasizes its almost four decades of Louisiana-inspired home cooking. The initiative includes a more contemporary logo, new brand advertising and tagline, and distinctive new products.

Positioning Popeyes as a “Louisiana Kitchen,” the company employs a memorable “Louisiana Fast” theme to remind consumers that the brand’s authentic taste is based on a 12 + hour marination.

This entry was posted on Tuesday, August 26th, 2008 at 12:33 pm and is filed under News.