Popeye's 2012 Annual Report Download - page 4

Bonafi de Performance
I’m proud of our consistent positive performance, both
fi nancially and operationally. Popeyes continues to lead
the way in the QSR industry, raising the bar for new
product innovation, restaurant profi t, and unit growth.
We continue to see positive responses to our brand
transformation. Our distinctive Louisiana heritage
drives everything from our menu and the look of our
new restaurants to promotions and advertising. So far,
more than 400 restaurants have been remodeled to our
stunning new design. These fresh-looking restaurants
are visually reinforcing our heritage and premium-quality
food, while creating a place that encourages diners to
eat-in and take a moment to enjoy their slow-cooked,
Louisiana-inspired meal. By year end, we expect that
60 percent of all of our domestic restaurants will feature
this new look.
Our immensely popular TV spokesperson Annie
continues to share the authenticity and zest for life our
guests have come to associate with Popeyes—lending
a distinctly Louisiana fl air to every national advertising
campaign we run.
Our results speak for themselves. Adjusted earnings
were $1.24 per diluted share versus $0.99 in 2011, an
increase of 25 percent. Operating EBITDA margins
remained among the highest in the restaurant industry
at 31.3 percent of total revenues, and we generated
$36.7 million in free cash fl ow.
Global same-store sales grew 6.9 percent, the combined
result of positive growth of 7.5 percent domestically and
2.6 percent in international markets.
We opened a net total of 66 new restaurants, bringing
the system to 2,104 restaurants.
Restaurant profi tability is strong. Restaurant operating
profi ts in dollars have grown for the fourth straight year
despite commodity pressures.
At approximately 3 percent of system-wide sales,
Popeyes’ general and administrative expenses remain
among the most effi cient in the restaurant industry,
and we continue to seek out new ways to be effi cient
and effective.
Bonafi de Future
For more than four decades, we’ve taken our passion
for fl avorful food and excellent value and infused it into
everything we do—creating a brand with staying power.
And in the last fi ve years, we’ve revisited the vision of our
founder, Al Copeland, and brought Popeyes back to our
Louisiana roots. Now we are building a new foundation
that focuses on our human capital, creating a distinct
competitive advantage by investing in, coaching, and
developing a talented workforce that delivers our brand’s
consumer promise.
When all is said and done, we’re serving up a Popeyes
future that is looking bright.
Sincerely,
Cheryl A. Bachelder
CEO, AFC Enterprises, Inc.
2AFC ENTERPRISES, INC. 2AFC ENTERPRISES, INC.