ATLANTA AFC Enterprises Inc., parent of the Popeyes Louisiana Kitchen chain, said the success of several value meal promotions in the first quarter led to a return to positive global same-store sales for the first time in about three years. The company still posted a nearly 22-percent decline in first-quarter profit.
Still, the better-then-expected sales results led the company to increase its estimated annual same-store sales range and report that earnings per share would be in the upper end of its guidance, which is a range of between 62 cents and 67 cents. It earned 65 cents in 2008.
The company said its successful value promotions included the eight-piece Butterfly Shrimp Tackle Box for $4.99; the two-piece Bonafide chicken value meal for $1.99; a nine-piece version of the meal was offered at $7.99; a two-piece Louisiana Tenders meal for $2.99; and a 9-piece version for $7.99.
For the first quarter ended April 19, global systemwide same-store sales increased 0.2 percent, compared with a decrease of 1.3 percent in the same quarter last year. Domestic same-store sales fell 0.3 percent compared with a decrease of 1.8 percent last year. International same-store sales increased 4.8 percent compared with an increase of 3.5 percent a year ago.
Annual same-store sales are now expected to range between a decline of 1 percent and a gain of 1 percent, up from previous expectations for a same-store sales decrease of between 1 percent and 3 percent. A year ago, same-store sales fell 3.5 percent.
Net income for the first quarter totaled $5 million, or 20 cents per share, compared with $6.4 million, or 24 cents a share, for the same quarter last year. Latest-quarter revenue fell 10 percent to $47.9 million, from $53.3 million a year ago. The drop in revenue was mainly because of the sale of 14 corporate locations to franchisees in the Atlanta and Nashville markets.
The chain opened 14 new restaurants, but closed 31 for a net loss of 17 stores during the quarter. It now operates or franchises about 1,909 locations.
Contact Elissa Elan at [email protected].