Popeye's 2014 Annual Report Download - page 36

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2014 Same-Store Sales
Global same-store sales increased 6.2%, compared to a 3.7% increase in 2013.
Total domestic same-store sales increased 6.3%, compared to a 3.6% increase last year. For six consecutive years, our domestic
same-store sales have outpaced the chicken-QSR and the entire QSR categories, 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 23.2% for 2014.
Company-operated restaurant same-store sales increased 5.7%, compared to 2.3% in 2013. Same-store sales in 2014 were
comprised of 10% in our heritage markets, New Orleans and Memphis, partially offset by negative same-store sales in Indianapolis
and Charlotte. The Company expects that in the near-term, same-store sales in its new company-operated markets of both
Indianapolis and Charlotte will be negatively impacted as new restaurants are developed in those emerging markets and rollover
high first year sales volumes.
International same-store sales increased 5.1%, compared to a 4.7% increase last year, the eighth consecutive year of positive
same-store sales growth.
2015 Operating and Financial Outlook
Globally, in 2015, the Company expects:
• Same-store sales growth in the range of 3.5% to 4.5%.
• New restaurant openings in the range of 200 to 225, including approximately 85 to 95 internationally. Net restaurant
openings are expected to be in the range of 115 to 150, for a net unit growth rate of approximately 5% to 6%. During
2015, the Company expects to open three to five new company-operated restaurants.
• General and administrative expenses are expected to be approximately 2.9% of system-wide sales maintaining a rate that
supports long-term growth.
• Capital expenditures for the year are expected to be $15 to $20 million, including approximately $12.5 million for company-
operated restaurant development and relocations.
• Adjusted earnings per diluted share in the range of $1.83 - $1.88, reflecting growth of approximately 11% to 14%.
• In 2015, the Company expects to repurchase $40 to $50 million in outstanding shares, compared to $40 million in 2014.
• The Company’s effective income tax rate in 2015 is expected to be approximately 38%, compared to 38.5% in 2014.
Long-Term Guidance
Over the course of the upcoming five years, the Company believes the execution of its Strategic Roadmap will deliver the
following results on an average annualized basis:
• same-store sales growth of 2% to 4%, an increase from previous guidance of 1% to 3%.
• net unit growth of 5% to 7%, an increase from previous guidance of 4% to 6%.
• earnings per diluted share growth of 13% to 15%.
As stated earlier, we will be making significant investments in human capital and international expansion. When these
investments are thoroughly planned and validated, we will provide updated long-term guidance to reflect their impact on growth
and shareholder returns.
The Company will invest first and foremost in strategic initiatives to support long-term growth and drive value for our
shareholders. After investment in our strategic initiatives, we plan to utilize excess cash flow and borrowing capacity to repurchase
shares of our common stock. Over the course of the next two to three years, we expect to increase our consolidated total leverage
ratio from the current 1.4 to a range of 2.5 to 3.5.
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