AFC Reports Financial Results For Second Quarter 2012; Raises Fiscal 2012 Earnings Guidance

AFC Enterprises, Inc. (NASDAQ: AFCE), the franchisor and operator of Popeyes® restaurants, today reported results for its fiscal second quarter 2012 which ended July 8, 2012. The Company also raised earnings guidance for fiscal 2012 and provided an update on its Strategic Plan.

Second Quarter Highlights

• Reported net income was $6.6 million compared to $5.5 million last year. On a per diluted share basis, reported net income was 23% higher at $0.27 compared to $0.22 last year. Adjusted earnings per diluted share were $0.27, compared to $0.23 in 2011. 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.”
• Global same-store sales increased 7.5% compared to a 0.7% increase in the second quarter of last year. Through the end of the second quarter, global same-store sales were 7.5% compared to a 2.5% increase in the same period of the prior year.
• Global system-wide sales increased 11.5% rolling over a 4.8% increase in the second quarter of last year.
• The Popeyes system opened 25 restaurants during the second quarter and permanently closed 16 restaurants, resulting in 9 net openings compared to 5 in the prior year. Through the end of the second quarter, the Popeyes system opened 51 and permanently closed 33 restaurants, for net restaurant openings of 18 compared to 23 last year.
• Through the end of the second quarter, Operating EBITDA increased 19% to $28.6 million at 31.0% of Total Revenues, compared to the prior year Operating EBITDA of $24.1 million at 29.4% of Total Revenues. Operating EBITDA is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
• The Company generated $18.2 million of Free Cash Flow through the second quarter compared to $14.7 million last year. Free Cash Flow is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

AFC Enterprises Chief Executive Officer Cheryl Bachelder stated, “Popeyes is proud this quarter to deliver a 17% increase in adjusted earnings per diluted share over the second quarter of last year. Popeyes continued to gain market share, with our domestic same-store sales growth of 8.4% outpacing QSR by 3%. We are growing this brand by broadening our appeal with a pipeline of innovative food at competitive prices. Our strong relationship with our franchisees and our relentless focus on their unit economics is fueling our new unit expansion. These are the essential elements for building a powerful brand for the next 40 years and beyond.”

1 2 3 4 5 6 7 8 9 Next › Last »