Popeye's 2014 Annual Report Download - page 27

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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 a decline 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 a decline
in our sales.
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.
Inefficient restaurant technology or the failure to successfully implement technology initiatives in the future could adversely
impact operating results.
We and our franchisees rely on technology in the restaurants not only to efficiently operate but also to drive sales growth and
margin improvement. Our strategic technology initiatives may not be timely implemented or may not achieve the desired results.
Certain technology systems may also be unreliable or inefficient, and the technology vendors may limit or terminate product
support and maintenance, which could impact the reliability of critical systems supporting operations. Additionally, implementing
the evolving technology demands of the consumer may place a significant financial burden on our restaurant operators. Any such
deficiencies could impact sales and profitability by disrupting our operations, damaging our reputation or subjecting us to excessive
costs and liabilities.
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 a combination 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 have a material adverse effect on our business, including
the failure of our Popeyes brand and branded products to achieve and/or maintain market acceptance.
Also, certain branding names, phrases, and designs that we use have not been registered in all of the countries in which we do
business and may never be registered in all of these countries. In addition, the laws of some foreign countries do not protect
intellectual property rights to the same extent as the laws of the U.S. We cannot be certain that we will be able to adequately
protect our use of various marks or that their use will not result in liability for trademark infringement, trademark dilution or unfair
competition.
As the franchisor of the Popeyes system, we try to ensure that the quality of our Popeyes brand and branded products is
maintained by all of our franchisees, but cannot be certain that franchisees or others will not take actions that adversely affect the
value of our intellectual property or reputation.
There can be no assurance that all of the steps we have taken to protect our intellectual property in the U.S. and foreign
countries will be adequate. Further, through acquisitions of third parties, we may acquire brands and related trademarks that are
subject to the same risks as the brand and trademarks we currently own.