Popeyes reports positive Q2 growth
Aug. 17, 2016
by MEAT+POULTRY Staff
CEO expresses confidence in long-term goals thanks to success in international market.
ATLANTA – Popeyes Louisiana Kitchen, Inc., the franchisor and operator of Popeyes restaurants, reported Aug. 16 that its total revenues increased 3.9 percent to $61.7 million compared to $59.4 million in the second quarter of 2015. Total system-wide sales increased 6.5 percent in the second quarter ended July 10 as a result of net unit growth and same-store sales performance, according to the company.
|Cheryl Bachelder, Popeyes CEO
“The second quarter was a productive one for Popeyes on each of our three strategic pillars, despite the competitive pressures on comparable sales,” said Cheryl Bachelder, Popeyes CEO.
The company’s reported net income was $10.3 million, or 47 cents per diluted share, compared to $10.3 million, or 44 cents per diluted share in Q2 2015. Adjusted earnings per diluted share was 47 cents, compared to 44 cents in 2015. Both earnings per diluted share and adjusted earnings per diluted share had a year over year growth of 6.8 percent.
Compared to a 7.9 percent increase in domestic same-store sales in 2015, Popeyes’ total domestic same-store sales were flat in 2016. However, the company did increase its domestic market share of the chicken-QSR category to a record high 26.6 percent, compared to 25.4 percent in the second quarter of 2015.
“We have continued to offer our guests a balance of exciting new products and value-oriented promotions, and our share of chicken-QSR grew this quarter,” Bachelder said.
Sales by company-operated restaurants were slightly higher in the second quarter — $25.2 million in 2016 compared to $25.1 million in 2015.
Popeyes opened 43 restaurants — 23 domestic and 20 international restaurants — in the second quarter. At the end of the Q2 2016, Popeyes reported a net unit growth of restaurant openings of 6.2 percent over the last 12 months — the company currently operates and franchises 2,594 restaurants in 48 states, Washington, DC, three territories and 26 countries, compared to 2,443 at the end of the second quarter in 2015.
Q2 2016 marks the 26th consecutive quarter of positive international same-store sales growth, according to the company. International same-store sales increased 6.4 percent in Q2 2016, compared to a 4.3 percent increase in Q2 2015.
“Our international team is delivering excellent results,” Bachelder said. “So while we are experiencing slower domestic sales, consistent with the sector; we remain highly confident that our bold long term goals are achievable.”