Popeye's 2013 Annual Report Download - page 37

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21
•The Company recorded $5.5 million in non-recurring franchise revenues related to the conversions of
restaurants acquired in Minnesota and California. These revenues, net of occupancy and other expenses,
contributed approximately $0.12 to adjusted earnings per share in 2013.
•The Company repurchased approximately 504,000 shares of its common stock for approximately $19.9 million.
2013 Same-Store Sales
Global same-store sales increased 3.7%, compared to a6.9% increase in 2012.
Total domestic same-store sales increased 3.6%, compared to a7.5% increase last year. For five consecutive years,
our domestic same-store sales have outpaced the chicken-QSR and the entire QSR category, according to independent
data. This positive sales growth reflects Popeyes continued menu innovation, supported by expanded relevant advertising
and strengthened restaurant execution which has led to an increase in Popeyes market share of the chicken-QSR category
to 20.8% for 2013.
Company-operated restaurant same-store sales increased 2.3%, compared to 5.3% in 2012. Same-store sales in 2013
were comprised of 3.4% in our heritage markets, New Orleans and Memphis, offset by negative same-store sales for
the single Indianapolis restaurant included in the computation of same-store sales. The Company expects that in the
near-term, same-store sales in its new company-operated markets of both Indianapolis and Charlotte will be impacted
as new restaurants are developed in those emerging markets and rollover high first year sales volumes.
International same-store sales increased 4.7%, compared to a 2.6% increase last year, the seventh consecutive year
of positive same-store sales.
2014 Operating and Financial Outlook
Globally,in 2014, the Company expects:
•Same-store sales growth in the range of 2.0% to 3.0%.
• New restaurant openings in the range of 180 to 200 and net restaurant openings in the range of 100 to 130,
for a net unit growth rate of approximately 5%. During 2014, the Company expects to open 10 to 15 new
company-operated restaurants.
• General and administrative expenses are expected to be approximately 3% of system-wide sales maintaining
the investment rate for sustainable long term growth.
•Capital expenditures for the year are expected to be $30 to $35 million, including approximately $25 million
for company-operated restaurant development.
•Adjusted earnings per diluted share in the range of $1.57 to $1.62. This guidance reflects a two year average
growth of approximately 13% to 14%.
•In 2014, the Company plans to repurchase $20 to $30 million in outstanding shares, compared to $19.9 million
in 2013.
•The Company’seffective income tax rate in 2014 is expected to be approximately 38%, compared to 37.4%
in 2013.
Long-Term Guidance
Consistent with previous guidance, over the course of the upcoming five years, the Company believes the execution
of its Strategic Plan will deliver on an average annualized basis the following results: same-store sales growth of 1%
to 3%; net unit growth of 4% to 6%; and earnings per diluted share growth of 13% to 15%.