Popeye's 2013 Annual Report Download - page 22

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6
at our principal offices, which are located at 400 Perimeter Center Terrace, Suite 1000,Atlanta, Georgia 30346, telephone
number (404) 459-4450.
Item 1A. RISK FACTORS
Certain statements we make in this filing, and other written or oral statements made by or on our behalf, may
constitute “forward-looking statements” within the meaning of the federal securities laws. Words or phrases such as
“should result,” “are expected to,” “we anticipate,” “we estimate,” “we project,” “we believe,” or similar expressions
areintended to identify forward-looking statements. These statements aresubject to certain risks and uncertainties that
could cause actual results to differ materially from our historical experience and our present expectations or projections.
We believe that these forward-looking statements are reasonable; however, you should not place undue reliance on
such statements. Such statements speak only as of the date they are made, and we undertake no obligation to publicly
update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.
The following risk factors and others that we may add from time to time, aresome of the factors that could cause our
actual results to differ materially from the expected results described in our forward-looking statements.
If we are unable to compete successfully against other companies in the QSR industry or develop new products
that appeal to consumer preferences, we could lose customers and our revenues may decline.
The QSR industry is intensely competitive with respect to price, quality,brand recognition, menu offerings, service
and location. If we are unable to compete successfully against other foodservice providers, we could lose customers
and our revenues may decline. We compete against other QSRs, including chicken, hamburger, pizza, Mexican and
sandwich restaurants, other purveyors of carry out food, convenience dining establishments and other home meal
replacement alternatives, including national restaurant and grocery store chains. Many of our competitors possess
substantially greater financial, marketing, personnel and other resources than we do. There can be no assurance that
consumers will continue to regard our products favorably,that we will be able to develop new products that appeal to
consumer preferences, or that we will be able to continue to compete successfully in the QSR industry.
Adverse publicity related to food safety and quality could result in aloss of customers and reduce our revenues.
We and our franchisees are, from time to time, the subject of complaints or litigation from guests alleging illness,
injury or other food quality,health or operational concerns. Adverse publicity resulting from these allegations may
harm our reputation or our franchisees’ reputation, regardless of whether the allegations are valid or not, whether we
are found liable or not, or whether those concerns relate only to asingle restaurant or alimited number of restaurants
or many restaurants. We are also subject to potentially negative publicity from various sources, including television,
social media sites, which are beyond the control of the Company.Additionally,some animal rights organizations have
engaged in confrontational demonstrations at certain restaurant companies across the country. As a multi-unit restaurant
company, we can be adversely affected by the publicity surrounding allegations involving illness, injury,or other food
quality,health or operational concerns. Complaints, litigation or adverse publicity experienced by one or more of our
franchisees could also adversely affect our business as a whole. If we have adverse publicity due to any of these concerns,
we may lose customers and our revenues may decline.
If our franchisees are unable or unwilling to open a sufficient number of restaurants, our growth strategy could
be at risk.
As of December 29, 2013, we franchised 1,716 restaurants domestically and 456 restaurants in Puerto Rico, Guam,
the Cayman Islands and 28 foreign countries. Our growth strategy is significantly dependent on increasing the number
of our franchised restaurants. If our franchisees are unable to open asufficient number of restaurants, our growth strategy
could be significantly impaired.
Our ability to successfully open additional franchised restaurants will depend on various factors, including the
availability of suitable sites, the negotiation of acceptable leases or purchase terms for new locations, permitting and
regulatory compliance, the ability to meet construction schedules, the financial and other capabilities of our franchisees,
and general economic and business conditions. Many of the foregoing factors are beyond the control of our franchisees.
Further,there can be no assurance that our franchisees will successfully develop or operate their restaurants in a manner
consistent with our concepts and standards, or will have the business abilities or access to financial resources necessary