Popeyes Louisiana Kitchen Inc. lowered its guidance for the year after domestic same-store sales slowed in the second quarter, the company said Tuesday.
Domestic same-store sales were flat for the July 10-ended quarter, compared with a 7.9-percent increase a year ago.
But the Atlanta-based operator said it continued to grow its market share within the quick-service chicken segment to a record high of 26.6 percent.
International same-store sales increased 6.4 percent for the quarter. Global same-store sales rose 0.7 percent.
As a result, Popeyes downgraded its same-store sales estimate for the year, projecting growth of 1 percent to 2 percent, a decrease from previous guidance of 2 percent to 3 percent.
Cheryl Bachelder, Popeyes CEO, said slower sales were consistent with the sector.
“We remain highly confident that our bold, long-term goals are achievable,” Bachelder said.
Popeyes has implemented new field visit protocols to advance operational improvements, and is investing in new technologies, she said.
Net income was $10.3 million, or 47 cents per share, compared with $10.3 million, or 44 cents per share a year ago. Revenue for the quarter increased 3.9 percent, to $61.7 million.
The chain ended the quarter with 2,594 company-operated and franchised restaurants.
For the year, 200 to 235 restaurants new openings are expected, including 85 to 100 international locations.
Contact Lisa Jennings at [email protected]
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