It's a good thing Popeyes Louisiana Kitchen (PLKI) was bought by Restaurant Brands International (QSR) - Get Restaurant Brands International Inc Report on Tuesday because its 2016 fourth quarter earnings were far from savory.
After Wednesday's market close, Popeyes reported fourth quarter earnings of 44 cents a share, lower than the 47 cents a share analysts expected. Shares of Popeyes fell slightly in after-hours trading to $78.85.
Popeyes did post revenue of $61 million for the three-month period ended Dec. 25, compared to Wall Street's expectations of $59.9 million.
For the full year, the company posted earnings of $1.98 a share and revenue of $268.9 million. Analysts were anticipating Popeyes to report earnings of $2.11 a share on $267.8 million in revenue.
Meanwhile, Popeyes global same-store sales increased 2.8% in the fourth quarter. For the full year, comparable store sales increased only 1.7% worldwide, lower than the 5.9% growth recorded in 2015.
Popeyes CEO Cheryl Bachelder said in a statement that the company faced "challenging market conditions" in its fourth quarter.
On Tuesday, Restaurant Brands, the parent of Burger King and Tim Hortons, announced it plans to acquire Popeyes for $1.8 billion, or $79 a share. Popeyes operates 2,600 locations in the U.S. and 25 other countries.
The companies plan to close on the deal in April, and Restaurant Brands said Popeyes will be managed independently in the U.S., "while benefitting from the global scale and resources of RBI."
Popeyes cancelled its Thursday morning scheduled earnings call on the merger announcement.