AFC Enterprises Inc. (AFCE) Sees 1% Decrease in Comps; Updates FY09 Guidance
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Financial Fact:
Depreciation and amortization: 2.4M
Today's EPS Names:
SVBT, ZEO, OTLK, More
Financial Fact:
Depreciation and amortization: 2.4M
Today's EPS Names:
SVBT, ZEO, OTLK, More
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AFC Enterprises, Inc. (NASDAQ: AFCE) today reported operating results for its fourth fiscal quarter which ended December 27, 2009. The Company also reaffirmed its earnings guidance for fiscal 2009.
Fiscal 2009 Fourth Quarter Operating Results
Global same-store sales decreased 1.0 percent in the fourth quarter, compared to a decrease of 2.1 percent during the same time last year. Domestic same-store sales decreased 1.0 percent, compared to a decrease of 2.8 percent last year, with this improvement resulting from the Company's strategy of advertising more compelling price points and using more efficient media. According to independent data, during the fourth quarter Popeyes domestic same-store sales have continued to outpace both the QSR category and Chicken QSR category. International same-store sales decreased 0.8 percent compared to an increase of 4.1 percent last year.
Global same-store sales increased 0.7 percent for fiscal 2009, compared to a decrease of 1.7 percent last year, and were consistent with the Company's previous guidance at the lower-end of flat to positive 2 percent.
The Popeyes system opened 44 new restaurants during the fourth quarter, compared to 43 last year. These openings included 20 domestic and 24 international restaurants. Total global openings of 95 restaurants in fiscal 2009, which included 39 domestic and 56 international restaurants, were slightly lower than previous guidance of 100-110, due primarily to permit delays. The Popeyes system permanently closed 81 global restaurants in fiscal 2009, resulting in 14 net restaurant openings which exceeded previous guidance of 0-10 net openings. Fiscal 2009 closures consisted of 51 domestic and 30 international restaurants.
At fiscal year-end, Popeyes had 1,943 restaurants compared to 1,922 last year. Total unit count was comprised of 1,576 domestic and 367 international restaurants in 27 foreign countries and two territories. Of this total, 1,906 were franchised and 37 were company-operated restaurants.
AFC Enterprises Chief Executive Officer Cheryl Bachelder stated, "During the fourth quarter, Popeyes was able to sustain positive traffic momentum, outperforming both QSR and Chicken QSR categories, where same-store sales and traffic remained weak. As a result, our full year same-store sales remained positive, and we have gained market share in the chicken category. This is a strong position given the market conditions. New restaurant openings were slightly below our full year guidance, but we exceeded our net restaurant openings guidance as a result of fewer restaurant closures. We are pleased with our team's accomplishments in 2009, and we believe our strategic plan initiatives will gain further momentum in 2010 on this solid foundation."
Fiscal 2009 Financial Guidance
The Company continues to expect that fiscal 2009 general and administrative expenses will be 3.1-3.2 percent of system-wide sales, among the lowest in the restaurant industry.
Consistent with previous guidance, the Company expects 2009 reported earnings to be at the upper end of $0.66-$0.70 per diluted share, compared to reported earnings of $0.76 per diluted share in 2008. Adjusted earnings per diluted share are expected to be at the upper end of $0.65-$0.69 in 2009, as compared to $0.65 in the prior year. Consensus sees FY09 EPS of $0.70. Management expects to provide fiscal 2010 guidance during the middle of its first fiscal quarter, concurrent with the filing of the Company's 2009 Annual Report on Form 10-K.
The Company calculates adjusted earnings per diluted share by excluding "Other income, net" of $2.6 million, or $0.06 per diluted share, in 2009 and $4.6 million, or $0.11 per diluted share, in 2008, as well as $1.9 million, or $0.05 per diluted share, of interest expense associated with the credit amendment in 2009. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled "Management's Use of Non-GAAP Financial Measures."
Fiscal 2009 Fourth Quarter Operating Results
Global same-store sales decreased 1.0 percent in the fourth quarter, compared to a decrease of 2.1 percent during the same time last year. Domestic same-store sales decreased 1.0 percent, compared to a decrease of 2.8 percent last year, with this improvement resulting from the Company's strategy of advertising more compelling price points and using more efficient media. According to independent data, during the fourth quarter Popeyes domestic same-store sales have continued to outpace both the QSR category and Chicken QSR category. International same-store sales decreased 0.8 percent compared to an increase of 4.1 percent last year.
Global same-store sales increased 0.7 percent for fiscal 2009, compared to a decrease of 1.7 percent last year, and were consistent with the Company's previous guidance at the lower-end of flat to positive 2 percent.
The Popeyes system opened 44 new restaurants during the fourth quarter, compared to 43 last year. These openings included 20 domestic and 24 international restaurants. Total global openings of 95 restaurants in fiscal 2009, which included 39 domestic and 56 international restaurants, were slightly lower than previous guidance of 100-110, due primarily to permit delays. The Popeyes system permanently closed 81 global restaurants in fiscal 2009, resulting in 14 net restaurant openings which exceeded previous guidance of 0-10 net openings. Fiscal 2009 closures consisted of 51 domestic and 30 international restaurants.
At fiscal year-end, Popeyes had 1,943 restaurants compared to 1,922 last year. Total unit count was comprised of 1,576 domestic and 367 international restaurants in 27 foreign countries and two territories. Of this total, 1,906 were franchised and 37 were company-operated restaurants.
AFC Enterprises Chief Executive Officer Cheryl Bachelder stated, "During the fourth quarter, Popeyes was able to sustain positive traffic momentum, outperforming both QSR and Chicken QSR categories, where same-store sales and traffic remained weak. As a result, our full year same-store sales remained positive, and we have gained market share in the chicken category. This is a strong position given the market conditions. New restaurant openings were slightly below our full year guidance, but we exceeded our net restaurant openings guidance as a result of fewer restaurant closures. We are pleased with our team's accomplishments in 2009, and we believe our strategic plan initiatives will gain further momentum in 2010 on this solid foundation."
Fiscal 2009 Financial Guidance
The Company continues to expect that fiscal 2009 general and administrative expenses will be 3.1-3.2 percent of system-wide sales, among the lowest in the restaurant industry.
Consistent with previous guidance, the Company expects 2009 reported earnings to be at the upper end of $0.66-$0.70 per diluted share, compared to reported earnings of $0.76 per diluted share in 2008. Adjusted earnings per diluted share are expected to be at the upper end of $0.65-$0.69 in 2009, as compared to $0.65 in the prior year. Consensus sees FY09 EPS of $0.70. Management expects to provide fiscal 2010 guidance during the middle of its first fiscal quarter, concurrent with the filing of the Company's 2009 Annual Report on Form 10-K.
The Company calculates adjusted earnings per diluted share by excluding "Other income, net" of $2.6 million, or $0.06 per diluted share, in 2009 and $4.6 million, or $0.11 per diluted share, in 2008, as well as $1.9 million, or $0.05 per diluted share, of interest expense associated with the credit amendment in 2009. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled "Management's Use of Non-GAAP Financial Measures."
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