Fiscal 2013 Guidance
As described below, the Company is providing certain targets regarding its expectations for fiscal 2013.
- Same-store sales growth in the range of 3 to 4%.
- New restaurant openings in the range of 175 to 195, and net restaurant openings in the range of 85 to 115, for a net unit growth rate of 4 to 5.5%.
- During 2013, the Company expects to open and operate 6-10 new restaurants.
- Also included in 2013 openings are 24 of the restaurants acquired in Minnesota and California which will be converted to Popeyes primarily in the second and third quarters. Following the conversion, the restaurants will be leased to Popeyes franchisees to operate under standard franchise agreements. One remaining acquired restaurant property will be sold.
- General and administrative expenses are expected to increase to $72 to $74 million as we continue our investment in strategic initiatives and human capital. General and administrative expenses are expected to remain at approximately 3.0% of system-wide sales.
- Capital expenditures for the year are expected to be $24 to $28 million, including the conversion of acquired restaurants in California and Minnesota and the development of Company-operated restaurants.
- Adjusted earnings per diluted share in the range of $1.37 to $1.42, a 10 to 14% increase over 2012, after including the effect of the following two items:
- In 2013, the Company plans to repurchase $15 to $20 million in outstanding shares, compared to $15.2 million in 2012.
- The Company’s effective income tax rate in 2013 is expected to be approximately 37%, compared to 36.3% in 2012.
2012 Financial Performance Review
Total system-wide sales increased by 13.5% in fiscal 2012. System-wide sales were comprised of $2.2 billion in franchise restaurant sales and $64.0 million in Company-operated restaurant sales. Of the 13.5% growth in 2012, approximately 180 basis points was attributable to the effect of the 53rd week.