Popeye's 2014 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2014 Popeye's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 90

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90

Adjusted Earnings Per Diluted Share
$0.86 $0.99
$1.24
$1.43
$1.65
2010 2011 2012 2013 2014
TO OUR STAKEHOLDERS
At Popeyes®
, we are a growth company — and growth companies plan for the long-term. This is
how we continue to deliver strong, consistent and sustainable results year after year, as we
continue to invest in the future. By executing on our strategic roadmap, we are accelerating
our growth in the United States and around the globe.
We continue to perform with a powerful brand backed by outstanding food and the best menu
innovation in the industry. Two things set us apart: our unique brand of spicy Louisiana cooking and the
powerful partnership we have fostered with our franchisees.
When our leadership team came together seven years ago, we committed to make franchise owners
our number one priority. Then we developed our roadmap to support their long-term health and
profitability. Since then our franchisee-first focus has served us well — because when they prosper and
grow, all of our stakeholders benefit.
From the start, our roadmap has been built on four strategic pillars: Build a Distinctive Brand, Create
Memorable Experiences, Grow Restaurant Profits and Accelerate Quality Restaurant Openings.
In 2015 we added a new “first” pillar called Develop Servant Leaders. Together with our franchisees,
we are investing in our people — with an emphasis on our restaurant general managers — to take
Popeyes to the next level of performance.
HERE WE GROW AGAIN!
By staying true to our strategic pillars, we served up stunning results again in 2014. We opened 201
new restaurants — the highest opening count in over 15 years — and expanded our footprint to 2,379
locations worldwide. In the process we grew system-wide sales by 12.3 percent and achieved global
same-store sales growth of 6.2 percent. Domestic same-store sales grew for the sixth consecutive
year and international same-store sales grew for the eighth consecutive year.
With six years of steadily increasing market share, we commanded 23.2 percent of the domestic
chicken quick service restaurant (CQSR) segment at the end of 2014. Our strong sales and unit growth
allowed us to generate free cash flow of $48.0 million. We reported earnings per diluted share of $1.60
and adjusted earnings per diluted share of $1.65 in 2014, compared to adjusted earnings per share of
$1.43 in 2013, an increase of approximately 15 percent.
Our success comes in large part from our long-term commitment to our
franchisees, who have invested personally in our brand and the opportunity
to grow with Popeyes. To ensure their success, we continue to focus on
improving restaurant profitability. The operating profits before rent of
Popeyes’ domestic restaurants remain among the highest in the industry
and continued to grow to 22.4 percent in 2014, from approximately 18.0
percent in 2008. That’s an annual average of about $300,000 per location!
1