ATLANTA Popeyes parent AFC Enterprises Inc. said it expects global same-store sales to fall between 1 percent and 3 percent in 2009, following a dip of 1.7 percent in 2008, despite major menu and marketing efforts to drive traffic.
The parent to the 1,922-unit quick-service chain spent much of last year introducing new products — the Big Deals sandwiches and wraps, Louisiana Travelers and Big Easy chicken bowls and sandwiches — as well as rebranding the chain as Popeyes Louisiana Kitchen. The moves were made to emphasize Popeyes' heritage and expand snack and lunch offerings.
For the full year ended Dec. 28, domestic systemwide same-store sales decreased by 2.2 percent, reflecting a drop of 5.6 percent at corporate restaurants and a drop of 2.1 percent for franchised locations. International same-store sales increased 4.1 percent compared to an increase of 1.1 percent last year, the company said.
According to AFC, the company this year will continue to invest in strategic measures, including national advertising and improvements to operations.
For the fourth quarter, net income fell 33.3 percent to $2.4 million, or 10 cents per share. Revenue fell 8.2 percent, to $35.9 million, reflecting a $3.3 million reduction in sales at corporate restaurants from refranchising efforts and negative same-store sales trends.
AFC’s 2008 results included a 16-percent drop in net income, to $19.4 million, or 76 cents per share, which included 11 cents of non-operating income. Executives said they anticipate earnings of between 62 cents to 67 cents per share for 2009, excluding non-operating income.
Fiscal 2008 revenues fell 0.3 percent to $166.8 million. Popeyes’ systemwide sales rose 0.6 percent to $1.74 billion, reflecting a 0.7-percent rise in sales at franchised restaurants, to $1.66 billion, and a 2.1-percent drop in sales at corporate stores, to 78.3 million.
Popeyes will open between 90 and 110 restaurants worldwide in 2009, while closing between 140 and 160 outlets. The chain opened 140 units worldwide in 2008, while closing 120 locations.
Contact Alan J. Liddle at [email protected].