ATLANTA AFC Enterprises Inc., franchisor or operator of 1,881 Popeyes Chicken & Biscuits restaurants, posted a 10.2-percent year-over-year increase in profit for its third quarter on an 8-percent jump in revenue. However, weaker-than-expected same-store sales in the third quarter and soft sales projections for the remainder of the year led the company to reduce its annual per-share earnings projection by as much as 5 cents.
AFC said it expects annual same-store sales at domestic locations of its Popeyes chain to be down 2.5 percent from a year earlier. The company now expects its per-share earnings for fiscal 2007 to total between 78 cents and 80 cents, compared with previous guidance of between 81 cents and 85 cents. For fiscal 2006, AFC earned 75 cents per share.
The company’s soft third-quarter same-store sales, which were down 1.9 percent at domestic locations and down 1.7 percent globally, were blamed on lower-than-expected results from limited-time offerings and on weaker lunch and dinner daypart traffic that AFC said was prevalent throughout the whole quick-service sector.
Net income totaled $6.5 million, or 23 cents per share, for the third quarter ended Oct. 7, compared with net income of $5.9 million, or 20 cents per share, a year ago.
Revenue totaled $38.9 million. Total systemwide sales increased 2.8 percent to $385.8 million, the company reported.
