Third Quarter 2012 Financial Performance
Global system-wide sales increased by 10.5%. System-wide sales were comprised of $497.7 million in franchise restaurant sales and $13.5 million in company-operated restaurant sales.
Global same-store sales increased 6.3% rolling over a 1.7% increase in 2011, for a two-year growth of 8.0%. Through the end of the third quarter, global same-store sales increased 7.1% rolling over a 2.2% increase last year, for a two-year growth rate of 9.3%.
Total domestic same-store sales increased 6.8% compared to a 1.7% increase last year, representing the 10
consecutive quarter of same-store sales growth. International same-store sales increased 2.5% compared to a 1.8% increase in 2011, representing the 11
consecutive quarter of same-store sales growth. Same-store sales growth at company-operated restaurants in the third quarter of 2012 was 1.9% compared to negative 1.9% last year. Adjusting for the effect of Hurricane Isaac on the Company’s New Orleans restaurants, company-operated restaurant same-store sales growth would have been positive 4.0%.
Company-operated restaurant operating profit (“ROP”) was $2.2 million at 16.3% of sales, compared to $2.1 million at 17.1% of sales last year. The majority of the Company-operated restaurants located in New Orleans were temporarily closed for some period during Hurricane Isaac. The 0.8% decrease in ROP was primarily attributable to personnel expenses and other fixed expenses incurred at those restaurants during the period they were closed. Company-operated restaurant operating profit margin is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
General and administrative expenses were $14.7 million, at 2.9% of system-wide sales, compared to $14.1 million, at 3.0% of system-wide sales in 2011. The $0.6 million increase was primarily attributable to a $0.4 million increase in company-operated restaurant support and pre-opening development costs in new markets and a $0.2 million increase in domestic franchise development expenses. General and administrative expenses as a percentage of system-wide sales remain among the lowest in the restaurant industry.