Popeye's 2004 Annual Report Download - page 11

FINANCIAL HIGHLIGHTS (Continuing Operations) & Key Operational Metrics (1)
(Dollars in millions) 20042003 2002
Franchise revenues $ 72.8 $ 70.8 $67.1
Total revenues(2) $ 163.9 $ 161.5 $ 158.9
Segment information(3)
Chicken operating profit $ 43.7 $ 36.5 $ 52.0
Corporate operating loss $ (63.1) $ (56.2) $ (41.7)
Loss before discontinued operations
and accounting change $ (14.3) $ (14.5) $ (6.4)
System-wide sales(4) $ 1,538 $ 1,471 $ 1,420
Domestic system same-store sales growth 1.3% (2.6)% 0.7%
Unit openings 109 177 169
Total units 1,825 1,806 1,712
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this Annual R eport and other written or oral statements made by or on behalf of AFC or its brand are
“forward-looking statements” within the meaning of the federal securities laws. Statements regarding future events and
developments and our future performance, as well as management’s current expectations, beliefs, plans, estimates or
projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking
statements are subject to a number of risks and uncertainties. Among the important factors that could cause actual results
to differ materially from those indicated by such forward-looking statements are:
Design: Eisenman Associates
Photography: Jerry Siegel
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(1) The information presented in the table relates to AFC’s continuing operations. The Company sold Church’s Chicken and Cinnabon
in 2004, and Seattle Coffee Company in 2003 and accordingly, results of those operations have been excluded from the above
statistics. Refer to AFC’s Consolidated Financial Statements and Management’s Discussion & Analysis of Financial Condition and
Results of Operations in the attached Annual Report on Form 10-K for additional information concerning financial performance.
(2) Total revenues include, in 2004, $12.6 million in sales related to two Popeyes franchisees that were consolidated as part of AFC’s
adoption of FIN46R.
(3) Refer to Note 24 of the Notes to Consolidated Financial Statements, Segment Information (Continuing Operations).
(4) System-wide sales represent combined sales of all restaurants that we operate or franchise. Information for franchised units is
provided by our franchisees. System-wide sales are unaudited.
•adverse effects of litigation or regulatory actions arising in
connection with the restatement of our previously issued
financial statements;
•the loss of franchisees and other business partners;
•failure of our franchisees;
•the loss of senior management and the ability to attract and
retain additional qualified management personnel;
•a decline in the number of new units to be opened
by franchisees;
•competition from other restaurant concepts and food retailers;
•the need to continue to improve our internal controls;
•completion by management and our independent auditors of
their audit and attestation procedures under Section 404 of
the Sarbanes-Oxley Act of 2002;
•limitations on our business under our credit facility;
•a decline in our ability to franchise new units;
•increased costs of our principal food products;
•labor shortages or increased labor costs;
•slowed expansion into new markets;
•changes in consumer preferences and demographic trends,
as well as concerns about health or food quality;
•unexpected and adverse fluctuations in quarterly results;
•increased government regulation;
•general economic conditions;
•supply and delivery shortages or interruptions;
•currency, economic and political factors that affect our
international operations;
•inadequate protection of our intellectual property;
•liabilities for environmental contamination;
•and the other risk factors detailed in our 2004 Annual
Report on Form 10-K and other documents we file with the
Securities and Exchange Commission.
You should not place undue reliance on any forward-looking statements, since those statements speak only as of the date
they are made.