AFC Enterprises Inc., parent of the Popeyes Louisiana Kitchen chain, said distinctive products and a focus on value helped drive sales and earnings in its latest quarter.
AFC’s net income rose 6.3 percent to $6.8 million, or $0.26 per share, in the second quarter ended July 11, compared with $6.4 million, or $0.25 per share, last year, the company reported Wednesday.
Revenue slipped to $34.3 million, compared to $35.7 million in last year's second quarter, when the company sold 13 stores to franchisees.
Popeyes’ domestic same-store sales rose 0.4 percent for the second quarter, compared with a 4.3-percent increase for the year-ago period. International same-store sales grew 2.7 percent, compared with a 3.9-percent increase in 2009.
Global same-store sales rose 0.6 percent, compared with a 4.3-percent increase last year.
Cheryl Bachelder, AFC’s chief executive, said the company’s performance “reflects top-line momentum generated by the introduction of Popeyes Wicked Chicken.” The 1,945-unit chain also debuted its Cane Sweeeet Iced Tea during the quarter.
“We believe our success is also driven by our Strategic Plan, which is focused on offering more value and innovation, married with improved guest experience,” Bachelder said.
The company increased its earnings guidance for 2010, saying it expects to earn between 75 cents and 79 cents per share this year, up from an earlier projection of 73 cents to 77 cents per share.
The company opened 17 outlets and permanently closed 17 in the quarter. AFC said it now expects to open between 120 and 130 new restaurants in 2010 and close 80 to 90 locations.
Contact Paul Frumkin at [email protected].
