Popeye's 2013 Annual Report Download - page 25

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consumer confidence, stabilize the markets or increase or maintain liquidity and the availability of credit. Declines in
or displacement of our guests’ discretionary spending could reduce traffic in our system’s restaurants and/or limit our
ability to raise prices.
Shortages or interruptions in the supply or delivery of fresh food products could adversely affect our operating
results.
We and our franchisees are dependent on frequent deliveries of fresh food products that meet our specifications.
Shortages or interruptions in the supply of fresh food products caused by unanticipated demand, natural disasters,
problems in production or distribution, declining number of distributors, inclement weather or other conditions could
adversely affect the availability,quality and cost of ingredients, which would adversely affect our operating results.
Instances of food-borne illness or avian flu could adversely affect the price and availability of poultry and other
foods and create negative publicity which could result in adecline in our sales.
Instances of food-borne illness or avian flu could adversely affect the price and availability of poultry and other
foods. As a result, Popeyes restaurants could experience a significant increase in food costs if there are additional
instances of avian flu or food-borne illnesses. In addition to losses associated with higher prices and a lower supply of
our food ingredients, instances of food-borne illnesses could result in negative publicity for us. This negative publicity,
as well as any other negative publicity concerning food products we serve, may reduce demand for our food and could
result in a decrease in guest traffic to our restaurants. A decrease in guest traffic to Popeyes restaurants as a result of
these health concerns or negative publicity could result in adecline in our sales.
Failure to protect our information systems against cyber attacks or information security breaches, including failure
to protect the integrity and security of individually identifiable data of our customers, franchisees and employees,
could expose us to litigation, damage our reputation and have amaterial adverse effect on our business.
We rely on computer systems and information technology to conduct our business. These systems are inherently
vulnerable to disruption or failure, as well as internal and external security breaches, denial of service attacks or other
disruptive problems caused by hackers. A failure of these systems could cause an interruption in our business which
could have amaterial adverse effect on our results of operations and financial condition.
In addition, we receive and maintain certain personal information about our customers, franchisees and employees.
The use of this information by us is regulated by applicable law.If our security and information systems are compromised
or our business associates fail to comply with these laws and regulations and this information is obtained by unauthorized
persons or used inappropriately,it could adversely affect our reputation, as well as our restaurant operations and results
of operations and financial condition. Additionally, we could be subject to litigation or the imposition of penalties. As
privacy and information security laws and regulations change, we may incur additional costs to ensure we remain in
compliance.
If any member of our senior management left us, our operating results could be adversely affected, and we may
not be able to attract and retain additional qualified management personnel.
We are dependent on the experience and industry knowledge of the members of our senior management team. If,
for any reason, our senior executives do not continue to be active in management or if we are unable to attract and
retain qualified new members of senior management, our operating results could be adversely affected. We cannot
guarantee that we will be able to attract and retain additional qualified senior executives as needed. We have employment
agreements with certain executives; however,these agreements do not ensure their continued employment with us.
We may not be able to adequately protect our intellectual property,which could harm the value of our Popeyes
brand and branded products and adversely affect our business.
We rely on acombination of trademarks, copyrights, service marks, trade secrets and similar intellectual property
rights to protect our Popeyes brand and branded products. Our expansion strategy depends on our continued ability to
use our intellectual property to increase brand awareness and further develop our branded products in both domestic
and international markets. If our efforts to protect our intellectual property are not adequate, or if any third party
misappropriates or infringes on our intellectual property,the value of our Popeyes brand may be harmed, which could