Popeye's 2006 Annual Report Download - page 10

Financial Highlights (Continuing Operations)
& Key Operational Metrics(1)
(Dollars in millions, except per common share data) 2006 2005 2004
Franchise revenues $ 82.6 $ 77.5 $ 72.8
Total revenues(2) $ 153.0 $ 143.4 $ 163.9
Income (loss) before discontinued operations
and accounting change $ 22.2 $ (8.4) $ (14.3)
Net income(3) $ 22.4 $ 149.6 $ 24.6
Diluted earnings per common share:
Net income(4) $ 0.75 $ 5.14 $ 0.87
Global system-wide sales growth(5) 7.0% 4.8% 4.5%
Domestic system-wide same-store sales growth 1.6% 3.3% 1.3%
New restaurant openings 142 123 109
Total restaurants 1,878 1,828 1,825
(1) The financial information presented in the table relates to AFC’s continuing operations with the exception of net
income and diluted earnings per common share. The Company sold its former Church’s Chicken® and Cinnabon®
divisions in 2004, and results of those operations have been excluded from the above statistics. Please refer to
AFC’s Consolidated Financial Statements and Management’s Discussion and 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 for 2006 included a 53rd week which increased sales by $2.5 million. Total revenues for 2006,
2005, and 2004 included approximately $1.1 million, $2.7 million, and $12.6 million, respectively, in sales related
to Popeyes franchisees that were consolidated as part of AFC’s adoption of FIN 46R.
(3) Discontinued operations provided after-tax income of $0.2 million in 2006, $158.0 million in 2005 (all of which was
associated with a gain on the sale of Church’s Chicken) and provided after-tax income of $39.1 million in 2004
(principally related to the gain on the sale of Cinnabon together with Church’s Chicken operating results).
(4) Weighted average common shares for the computation of diluted earnings per common share were 29.8 million,
29.1 million, and 28.1 million for 2006, 2005, and 2004, respectively. For 2005 and 2004, potentially dilutive
employee stock options were excluded from the computation of dilutive earnings per share due to the anti-dilutive
effect they would have on “loss before discontinued operations and accounting change.”
(5) System-wide sales increase calculates combined sales of all restaurants that we operate or franchise. Sales
information for franchised restaurants is provided by our franchisees. System-wide sales are unaudited. Total
system-wide sales in 2006 included a 53rd week which increased system-wide sales by 1.8 percent.
Certain statements in this release, 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: competition from other restaurant concepts and
food retailers, the loss of franchisees and other business
partners, labor shortages or increased labor costs,
increased costs of our principal food products, changes
in consumer preferences and demographic trends, as
well as concerns about health or food quality, instances
of avian flu or other food-borne illnesses, our ability to
recover hurricane related losses from our insurers and
the economic impact on consumer spending in markets
affected by Hurricane Katrina, the loss of senior
management and the inability to attract and retain
additional qualified management personnel, limitations
on our business under our 2005 Credit Facility, failure
of our franchisees, a decline in the number of franchised
units, a decline in our ability to franchise new units,
slowed expansion into new markets, unexpected and
adverse fluctuations in quarterly results, increased
government regulation, adverse effects of regulatory
actions arising in connection with the restatement of
our previously issued financial statements, effects of
increased gasoline prices, 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 and liabilities for environmental contamination
and the other risk factors detailed in our 2006 Annual
Report on Form 10-K and other documents we file with
the Securities and Exchange Commission. Therefore,
you should not place undue reliance on any forward-
looking statements.
Cautionary Note Regarding Forward-Looking Statements