Popeyes Louisiana Kitchen Inc. plans to make significant investments in its employees and international growth in the coming years, the company said Thursday.
After reporting what it described as outstanding 2014 results, company officials upgraded expectations for the next five years, saying the quick-service chain will continue to execute a strategic roadmap that helped it achieve a global same-store sales increase of 6.2 percent for the year.
Atlanta-based Popeyes has reported six consecutive years of positive domestic same-store sales, largely a result of executing four pillars that the company set as priorities in its Strategic Roadmap, launched in 2008.
Those pillars include a commitment to building a distinctive brand, creating memorable experiences, growing restaurant profits and accelerating quality restaurant openings.
Popeyes CEO Cheryl Bachelder said the company will add two more pillars to the roadmap.
The first is an investment in its people that will go beyond building a human resource infrastructure that it has been developing over several years.
Bachelder said the goal will be to develop restaurant management as “servant leaders” who will help establish employee and customer experiences that “are as legendary as our food.”
General managers will be the focus, Bachelder said, noting that past training has focused on food.
“We’re now teaching them how to lead high-engagement work environments where people on our crews are well trained, well coached and well prepared to give good service to our guests,” she said during a call Thursday discussing earnings.
The second new pillar is international growth, which includes an investment in media to build brand awareness and trial overseas.
Popeyes operates and franchises 2,379 restaurants in the U.S., Guam, Puerto Rico, the Cayman Islands and 26 foreign countries, and Bachelder said the chain is looking at new markets.
In fiscal 2014, international same-store sales increased 5.1 percent, the eighth consecutive year of same-store sales growth.
Last year the chain added 201 restaurants, including 121 domestic locations and 80 international units.
During the fourth quarter ended Dec. 28, global same-store sales increased 9.8 percent, including a 10.7-percent increase domestically and a 4-percent increase for international units.
For 2015, the company projects same-store sales growth between 3.5 percent to 4.5 percent, with the opening of 200 to 225 new restaurants, including 85 to 95 international locations.
For the next five years, the company upgraded its same-store sales guidance to between 2 percent and 4 percent, an increase from previous projections of 1 percent to 3 percent.
Popeyes’ fourth quarter benefited from a strong lineup of limited-time offers, including Beer Can Chicken, Buttermilk Biscuit Butterfly Shrimp and Spice Box Chicken, all of which were supported by national media for the first time, Bachelder said.
Low gas prices also helped, along with remodeling 80 percent of its units.
Fourth-quarter net income was $8.8 million, or 37 cents per share, compared with $7 million, or 29 cents per share, a year ago.
Full year net income was $38 million, or $1.60 per share, compared with $34.1 million, or $1.41 per share, in fiscal 2013.
Revenue for the quarter was $56.9 million, compared with $48.4 million a year ago. Full year revenue increased 14 percent, to $235.6 million.
Contact Lisa Jennings at [email protected].
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