FOCUS Brands Inc., the franchisor and operator of over 2,200 ice cream stores, bakeries, restaurants and cafes under the brand names Carvel®, Cinnabon®, Schlotzsky’s®, Moe’s Southwest Grill® and Seattle’s Best Coffee®, announced today that Russ Umphenour has been named President and CEO. Former Chief Executive Steve Romaniello has been named Chairman of the Board, and joins Roark Capital Group as Managing Director and a member of the private equity firm’s Investment Committee.Based in Atlanta with $1.5 billion of equity capital under management, Roark Capital has purchased 14 franchise brands with over 13,500 points of distribution in 50 states and 33 countries. Affiliates of Roark Capital own a majority interest in FOCUS Brands.
“Steve and I have been friends and partners for over 12 years,” said Neal Aronson, Roark founder and managing partner. “Steve will meaningfully enhance our ability to partner with and build outstanding franchise companies, and his leadership at Roark would not have been a possibility unless we found the perfect person to take FOCUS Brands into the future. Russ’ experience, energy and enthusiasm, coupled with the utmost integrity, make this a win-win for all.”
With over 40 years in the restaurant business, Russ began his career as a part-time counter person at an Arby’s restaurant in 1967, and became the founder and CEO of Atlanta-based RTM (Results Through Motivation) Restaurant Group in 1973. Growing his company from 11 Arby’s restaurants into one of the largest restaurant companies in the country with 870 locations in 22 states across several different concepts, RTM was sold in July 2005 to Triarc Companies, Inc. (Arby’s Restaurant Group).
“FOCUS Brands has an impeccable reputation in the restaurant industry, and I am honored to have the opportunity to lead this terrific organization,” commented Umphenour. “The company was founded with a distinct culture that recognizes the importance of making its constituents happy, and I believe my philosophy of creating a clear business vision while focusing on setting goals and leading by values will provide an ‘anything is possible’ attitude as we move into this new era.”
AFC Enterprises, Inc., the franchisor and operator of Popeyes(R) restaurants, today reported results for its fiscal third quarter which ended October 5, 2008.  The Company announced preliminary fiscal third quarter earnings per share and operational results in its press release dated October 24, 2008. Third Quarter 2008 Highlights Compared to Third Quarter 2007:
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.
Popeyes new national cable advertising strategy was launched in support of new value, portable and lunch menu items.  The first media flight introduced Popeyes new Big Deals value sandwiches and wraps priced at $1.49 and attracted guests to both lunch and snack dayparts.
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.
The Company’s third quarter year-to-date free cash flow remains strong at $22.3 million, including $5.1 million of other non-operating income, compared to $23.3 million last year.
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.
Ted’s Montana Grill, the eco-friendly restaurant company founded by media entrepreneur, philanthropist and environmentalist Ted Turner, has begun testing new waste disposal equipment in Atlanta. The Organic Waste Management System by Fox Pollution Systems, the FoxSMB-2 equipment extracts liquids from food waste to reduce the weight of garbage produced in restaurants. For example, 15 pounds of food waste can be reduced to just two pounds of solid waste once the liquid has been extracted. Ted’s Montana Grill is studying this new technology for a possible expansion into more restaurants in 2009. Shown here, Jeffrey Ragland of the Ted’s Montana Grill restaurant in Atlanta on Peachtree Road places food into the FoxSBM-2 unit for liquid extraction.