ATLANTA, Sept. 18 /PRNewswire-FirstCall/ -- AFC Enterprises, Inc. , the franchisor and operator of Popeyes(R) Chicken & Biscuits, reported operational results for its financial period 8 which ended August 6, 2006 and period 9 which ended September 3, 2006.
Period 8 and Period 9 Operating Performance Results for Popeyes
Popeyes reported total domestic same-store sales increased 0.8 percent in period 8 and 1.9 percent in period 9 of 2006, compared to increases of 0.9 percent and 1.1 percent for period 8 and period 9 of 2005, respectively. These results represented positive same-store sales for the twenty-eighth and twenty-ninth consecutive periods. Year-to-date, Popeyes total domestic same- stores sales growth was up 3.7 percent.
During the balance of the year, Popeyes anticipates some decline in domestic franchise and company-operated same-store sales growth due to the impact of Hurricanes Katrina and Rita in certain markets. Total domestic same-store sales growth during the fourth quarter of 2005 was elevated by approximately 1-2 percentage points due to increased sales experienced in these hurricane affected markets. As a result of these increased sales in the fall of last year, Popeyes is estimating that fourth quarter 2006 same-store sales on a domestic system-wide basis will be approximately 1.5 percentage points lower than the growth it otherwise would experience. The Company anticipates that same-store sales growth for company-operated restaurants will likewise be approximately 6-8 percentage points lower than they otherwise would have been.
On a full-year basis, the Company continues to expect total domestic same- store sales growth to remain consistent with previous guidance of up 2.0-3.0 percent.
The Popeyes system opened 14 restaurants during period 8 and period 9 of 2006, compared to 17 total system-wide openings during the same periods in 2005. These openings included 13 units domestically and 1 unit internationally. Year-to-date, the Popeyes system has opened 80 restaurants compared to 68 openings during the same period in 2005. On a full-year basis, Popeyes anticipates 2006 system-wide openings to be approximately 140 units, with domestic openings at over 60 percent of the total amount.
The Popeyes system had 1,835 total units at the end of period 9 of 2006, comprised of 1,512 domestic units and 323 units in two territories and 24 foreign countries. This total unit count represented 1,785 franchised and 50 company-owned restaurants.
As of September 17, 2006, Popeyes had 16 company-owned restaurants open and operating in the New Orleans market. The Company projects approximately 20 company-owned restaurants to be open and operating in New Orleans by year end fiscal 2006.
The Company's projections for general and administrative expenses are expected to be at the higher end of the range of previous guidance of $46-$48 million for fiscal year 2006.
AFC Chief Executive Officer Ken Keymer stated, "Despite the softening we experienced in same-store sales in period 8 as a result of higher gasoline prices in July and as competitive pressures ramped up with value-offerings, we were able to see same-store sales improvements in period 9 with our limited- time Butterfly Shrimp offering in August and continued focus on operations. Our new restaurant development continues to be on target with year-to-date openings of 80 restaurants. Overall we are pleased with our progress and we remain on target with our full year operational guidance."
Corporate Profile
AFC Enterprises, Inc. is the franchisor and operator of Popeyes(R) Chicken & Biscuits, the world's second-largest quick-service chicken concept based on number of units. As of September 3, 2006, Popeyes had 1,835 restaurants in the United States, Puerto Rico, Guam and 24 foreign countries. AFC has a primary objective to be the world's Franchisor of Choice(R) by offering investment opportunities in its Popeyes Chicken & Biscuits brand and providing exceptional franchisee support systems and services. AFC Enterprises can be found on the World Wide Web at http://www.afce.com/.
AFC Contact Information
Investor inquiries:
Cheryl Fletcher, Director, Finance & Investor Relations
(404) 459-4487 or
Forward-Looking Statement: Certain statements in this release contain "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's current expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: competition from other restaurant concepts and food retailers, the loss of franchisees and other business partners, labor shortages or increased labor costs, increased costs of our principal food products, changes in consumer preferences and demographic trends, as well as concerns about health or food quality, instances of avian flu or other food-borne illnesses, the need to continue to improve our internal controls, adverse effects on operations from Hurricane Katrina, the Company's ability to recover related losses from its insurers and the economic impact on consumer spending in markets affected by Hurricane Katrina, the loss of senior management and the inability to attract and retain additional qualified management personnel, limitations on our business under our 2005 Credit Facility, failure of our franchisees, a decline in the number of franchised units, a decline in our ability to franchise new units, slowed expansion into new markets, unexpected and adverse fluctuations in quarterly results, increased government regulation, adverse effects of regulatory actions arising in connection with the restatement of our previously issued financial statements, effects of increased gasoline prices, general economic conditions, supply and delivery shortages or interruptions, currency, economic and political factors that affect our international operations, inadequate protection of our intellectual property and liabilities for environmental contamination and the other risk factors detailed in our 2005 Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission. Therefore, you should not place undue reliance on any forward- looking statements.
