Popeye's 2013 Annual Report Download - page 24

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8
Our operating results and same-store sales have fluctuated significantly in the past and may fluctuate significantly
in the future as a result of a variety of factors, many of which are outside of our control. If our operating results or
same-store sales fluctuate or fall below the expectations of securities analysts and investors, the market price of our
common stock could decline.
Factors that may cause our results or same-store sales to fluctuate include the following:
•the opening of new restaurants by us or our franchisees;
•the closing of restaurants by us or our franchisees;
• increases in the number of restaurant properties leased or sub-leased to franchisees under percentage rent
arrangements;
•volatility of gasoline prices;
• increases in labor costs;
• increases in the cost of commodities and paper products;
• inclement weather patterns; and
• economic conditions generally, and in each of the markets in which we, or our franchisees, are located.
Accordingly, results for any one period are not indicative of the results to be expected for any other period or for
the full year, and same-store sales for any future period may decrease.
We are subject to government regulation, and our failure to comply with existing regulations or increased
regulations could adversely affect our business and operating results.
We are subject to numerous federal, state, local and foreign government laws and regulations, including those relating
to:
•the preparation and sale of food;
• employee healthcare legislation;
•franchising;
•building and zoning requirements;
•environmental protection;
•information security and data protection;
•minimum wage, overtime, immigration, unions and other labor issues;
•compliance with the Americans with Disabilities Act; and
•working and safety conditions.
If we fail to comply with existing or future regulations, we may be subject to governmental or judicial fines or
sanctions, or we could suffer business interruption or loss. In addition, our capital expenses could increase due to
remediation measures that may be required if we are found to be noncompliant with any of these laws or regulations.
We are also subject to regulation by the Federal Trade Commission and to state and foreign laws that govern the
offer, sale and termination of franchises and the refusal to renew franchises. The failure to comply with these regulations
in any jurisdiction or to obtain required approvals could result in a ban or temporary suspension on future franchise
sales or fines or require us to make a rescission offer to franchisees, any of which could adversely affect our business
and operating results.
Disruptions in the financial markets may adversely affect the availability and cost of credit and the slower economy
may impact consumer spending patterns.
The ability of our franchisees and prospective franchisees to obtain financing for development of new restaurants
or reinvestment in existing restaurants depends in part upon financial and economic conditions which are beyond their
control. If our franchisees are unable to obtain financing on acceptable terms to develop new restaurants or reinvest in
existing restaurants, our business and financial results could be adversely affected.
Disruptions in the financial markets and the slower economy may also adversely affect consumer spending patterns.
There can be no assurances that governmental or other responses to economic challenges will restore or maintain