Popeye's 2006 Annual Report Download - page 5

to be positive about growth and
appreciate the variety of design and
venue options available to them to
spur new restaurant development.
Although damage from Hurricane
Katrina necessitated the closing of
36 company-operated locations, by
year-end 2006, we were operating 20
of those restaurants at significantly
higher volumes than prior to the
disaster. New Orleans is coming
back, and we are proud to be part
of that effort!
Our heritage
As the birthplace of Popeyes®,
New Orleans and the surrounding
communities of the Gulf Coast
hold special meaning for us. In
partnership with America’s Second
Harvest® - The Nation’s Food Bank
NetworkTM, Popeyes franchisees,
vendor partners and Company
employees donated $265,000
earmarked for communities across
the Gulf Coast. We are committed
to working with America’s Second
Harvest to help win the battle
against hunger.
Our brand growth
Along with accelerating growth, we
are also accelerating value creation.
We have the operational systems
in place for peak performance at
every step of fulfilling a guest’s
order — from more cost-effective
product sourcing to better training
of our operators and their staffs. To
drive traffic, we are launching a new
advertising campaign and using
national cable to help deliver the
message. To ensure consistency
throughout the system, we have
developed an overarching set of
quality standards to which all Popeyes
restaurants will adhere. We have
strengthened our restaurant
operations by holding regional
operations meetings and inter-regional
operations knowledge competitions.
We continue to generate substantial
free cash, thereby strengthening our
credit position in the financial markets
and giving us the benefit of financial
flexibility for the future.
Of course, there are challenges
ahead, also. Improving operating
margins in 2007 and strengthening
sales by daypart are high priorities.
So, too, is improving the guest
experience. People are looking
for exceptional food that’s also an
exceptional value. The key to making
that happen is a continued focus on
our food and the development
of value offerings that appeal to
our consumer.
2006 was a busy, productive year
for us, one made possible only with
the support of our shareholders,
our operators, our people and our
guests. For that, I thank all of you. We
continue to make Popeyes better — a
better place to work, a better brand
to own, a better stock to hold, and a
better place to eat for more people in
more places than ever before.
Frank J. Belatti
Chairman
AFC Enterprises, Inc.
Our growth strategy is two-pronged:
1) Drive system volumes of existing and newly opened restaurants.
2) Drive new store openings worldwide.
2006 ANNUAL REPORT 3