Popeyes Louisiana Kitchen (PLKI) Tops Q4 EPS by 1c

Popeyes Louisiana Kitchen (NASDAQ: PLKI) reported Q4 EPS of $0.42, $0.01 better than the analyst estimate of $0.41. Revenue for the quarter came in at $59 million versus the consensus estimate of $60.95 million.

Global same-store sales were 2.8%.

• Total domestic same-store sales increased 2.0%, compared to 10.7% in the fourth quarter of 2014 for a two-year compounded growth rate of 12.9%.
• International same-store sales increased 8.5%, compared to 4.0% in the fourth quarter of 2014.

lobally, in 2016, the Company expects:

• Same-store sales growth in the range of 2% to 3%.
• New restaurant openings in the range of 200 to 235, including approximately 85 to 100 internationally.
• Net new restaurants to be in the range of 140 to 185, for a net unit growth rate of approximately 6% to 7%, including three to five new Company-operated restaurants.
• General and administrative expenses to be approximately 2.9% to 3.0% of system-wide sales, maintaining an investment rate that supports long-term growth.
• Capital expenditures to be in the range of $10 million to $15 million, including approximately $10 million for Company-operated restaurant development.
• Adjusted earnings per diluted share to be in the range of $2.10 to $2.15.
• Our long-term, run rate adjusted earnings per diluted share guidance of 13% to 15%. However, to fund our strategic initiatives in 2016 and to drive our long-term bold goals, we are guiding to earnings per share growth of 10% to 13% for the current year.
• Share repurchases of $80 to $120 million in outstanding shares, compared to $62 million in 2015, with $60 million purchased from operating cash flows and up to $60 million from additional borrowings.
• Effective income tax rate in 2016 to be approximately 38%, compared to 37.5% in 2015.

Long-Term Guidance

Consistent with previous guidance, the Company believes the execution of its new Strategic Roadmap will deliver the following results on an average annualized basis:

• Same-store sales growth of 2% to 4%.
• Net unit growth of 5% to 7%.
• Earnings per diluted share growth of 13% to 15%.

After investment in our strategic initiatives, we plan to utilize excess cash flow and borrowing capacity to repurchase shares of our common stock. We expect to increase our consolidated total leverage ratio from the current 1.2 to a range of 2.5 to 3.5.

For earnings history and earnings-related data on Popeyes Louisiana Kitchen (PLKI) click here.

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