What is in this article?:
- AFC Enterprises: LTOs boost Popeyes 4Q sales
- Marketing driving growth
The company attributed rising sales to the company’s marketing of popular limited-time offers and products in 2012.
Marketing driving growth
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Bachelder said local and national advertising and marketing campaigns have helped fuel the company’s growth. “We, internally, say that we’re in what we like to call a virtuous cycle,” she said, noting that marketing initiatives grow brand awareness, which contributes to increased sales, which leads to more dollars to be spent marketing the Popeyes brand.
“Our strategy will continue to be what it has been, which is to use those dollars to drive awareness, to drive the distinctiveness of our brand and continue to build our brand with innovative, limited time offers like you've seen us do,” she said.
Additionally, Bower said the company’s reimaging campaign, which began a few years ago, has been a success so far. The redesigns, which cost about $100,000 each, include reworked interiors, with new paint color schemes, food-centric art such as spice racks and cast-iron detailing.
So far, about 25 percent of the Popeyes system has been refreshed, he said. By this time next year, the company hopes to have 60 percent of the stores redesigned.
As of the earnings report, sales figures for redesigned restaurant versus its left-alone counterparts were not available, Bower said. However, he noted that franchisees have been pleased so far.
“In order to compete in quick service today, you have to have a comfortable restaurant,” he said. “That’s becoming the price of admission.”
During the fourth quarter, net income for the company was $8.6 million, or $0.35 per share, compared with $5.7 million, or $0.23 per share, during the year-earlier quarter. Total revenue for the quarter was $47.5 million, up from $36.3 million the year prior.
For the full year 2012, net income was $30.4 million, or $1.24 per share, compared with $24.2 million, or $0.97 per share the year prior. Popeyes reported 178.8 million in total revenue for the year, up from $153.8 million in 2011.
Bachelder said 2013 should be a banner year for Popeyes. The company expects same-store sales to grow by about 3-4 percent during 2013, she said, which is ahead of current trends in thequick-service segment. Adjusted earnings per share in 2013 are expected to be in between $1.37 and $1.42, a 10- to 14-percent increase over 2012.
During 2013, Popeyes plans to open a net of 85-115 new stores, Bachelder said.
AFC Enterprises operates and franchises more than 2,100 Popeyes locations systemwide.