Popeye's 2015 Annual Report Download - page 25

Disruptions in the financial markets and adverse changes to economic conditions may also affect consumer spending patterns.
There can be no assurances that governmental or other responses to economic challenges will restore or maintain 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.
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 and causing a decline in our sales.
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.
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.
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