AFC Reports Financial Results For First Quarter 2009

Expects Earnings per Share to be at the Higher-end of Range for Full Year 2009

ATLANTA, May 27 /PRNewswire-FirstCall/ -- AFC Enterprises, Inc. (Nasdaq:
AFCE), the franchisor and operator of Popeyes(R), today reported results for
its first fiscal quarter of 2009 which ended April 19, 2009. The Company also
updated earnings guidance for fiscal 2009 and provided an update on its
strategic plan.

First Quarter 2009 Highlights compared to First Quarter 2008:

-- Net income was above street expectations at $5.0 million, or $0.20 per
diluted share, compared to $6.4 million, or $0.24 per diluted share,
last year. Excluding the impact from other non-operating expenses or
income, net income would have been $5.2 million, or $0.21 per diluted
share, compared to $5.6 million, or $0.21 per diluted share last year.

-- System-wide sales increased by 1.1 percent compared to an increase of
1.5 percent last year.

-- Global same-store sales increased 0.2 percent compared to a decrease
of
1.3 percent last year. Domestic same-store sales decreased 0.3
percent
compared to a decrease of 1.8 percent last year. International
same-store sales increased 4.8 percent compared to an increase of 3.5
percent last year.

-- The Company opened 14 restaurants and closed 31 restaurants, resulting
in net closings of 17 restaurants. At the end of the first quarter of
2009, total unit count was 1,909 compared to 1,889 last year.

-- The Company generated free cash flow of $7.1 million and repaid $3.9
million on its 2005 Credit Facility. AFC's free cash flow
computation and reconciliation to GAAP measures are described in
detail
under the heading "Use of Non-GAAP Financial Measures."

AFC Enterprises Chief Executive Officer Cheryl Bachelder stated, "Our first
quarter performance was good. Global same-store sales for the quarter were
positive for the first time since the second quarter of 2006, and according to
independent data, our quarterly domestic same-store sales significantly
outpaced the chicken QSR category. This trend improvement is the result of
promoting our famous and favorite bone-in chicken and seafood with more
compelling price points and an advertising campaign that is resonating with
our core consumers. The guest response is very encouraging given the
intensely competitive QSR marketplace."

Strategic Plan Update

1. Build the Popeyes Brand
Popeyes successful famous and favorites promotions are outlined below.

-- During the first quarter, Popeyes kicked-off the Lenten season with
its
new $4.99 Butterfly Shrimp Tackle Box promotion featuring 8-pieces of
Butterfly Shrimp with Cajun fries and a buttermilk biscuit. Popeyes
promoted its Bonafide(TM) chicken with two compelling value offerings
featuring 2-pieces of bone-in chicken and a biscuit for $1.99 and
9-pieces of bone-in chicken or 9-tenders for $7.99. Both promotions,
supported by national cable advertising, delivered positive guest
counts
and same-store sales.

-- The Popeyes system promoted 'Popeyes Pay Day' on April 22nd,
during the first week of its second quarter. This national one-day
promotion featured 8-pieces of Popeyes signature Bonafide(TM) chicken
for only $4.99. The Company was pleased with the exceptional guest
response and strong same-store sales for that week.

-- In May the Company featured a 2-piece Louisiana Tenders meal for $2.99
and 9-pieces of bone-in chicken or 9-tenders for $7.99. This
promotion
also delivered positive same-store sales which were driven by positive
guest counts. Popeyes restaurants are continuing to promote famous
and
favorite menu items in the second quarter.

2. Run Great Restaurants

-- Popeyes continues to see improvement in its guest experience
monitoring
survey. Overall delighted scores were up 11 percentage points since
the
implementation of the program last year.

-- The Company remains focused on improving speed of service for its
guests. By the end of June, all restaurants will be required to
purchase headsets and timers - essential equipment in running good
drive-thru restaurants.

3. Grow Profitability

-- The Company will continue to focus on improving unit economics and
identifying key markets and growth-ready franchisees for accelerating
unit growth in 2010 and beyond. The Company's goal is to position
Popeyes to ramp up new unit growth as soon as the consumer environment
and credit market conditions improve.

4. Align People and Resources to Deliver Results

-- As previously indicated, the Company is in continued negotiations to
re-franchise the remaining company-operated restaurants in the Atlanta
market and expects to complete the transaction once buyer financing is
secured.

First Quarter Financial Performance Review compared to First Quarter Last Year

System-wide sales increased by 1.1 percent compared to an increase of 1.5
percent last year.

Global same-store sales increased 0.2 percent compared to a decrease of 1.3
percent last year. Domestic same-store sales decreased 0.3 percent compared
to a decrease of 1.8 percent last year. International same-store sales
increased 4.8 percent compared to an increase of 3.5 percent last year.

Total revenues were $47.9 million compared to $53.3 million last year. The
decrease in revenues was principally due to the Company's successful
re-franchising of 14 company-operated restaurants in the Atlanta and Nashville
markets. After adjusting for franchise revenue, general and administrative
savings, and lower depreciation and amortization, the first quarter impact of
re-franchising those company-operated restaurants was favorable to operating
profit by approximately $0.5 million.

Company-operated restaurant expenses for food, beverages and packaging as a
percentage of sales were 33.2 percent compared to 34.8 percent last year.
This 1.6 percentage point improvement was primarily attributable to better
restaurant-level disciplines and the re-franchising of company-operated
restaurants. Restaurant employee, occupancy and other expenses as a
percentage of sales were 51.9 percent compared to 50.0 percent last year.
This increase was primarily due to costs for additional management talent to
operate company restaurants, planned incremental advertising fund
contributions and insurance.

General and administrative expenses were $17.7 million or 3.3 percent of
system-wide sales, compared to $16.1 million or 3.0 percent of system-wide
sales last year. The increase was attributable to the Company's $1.6 million
investment in national cable advertising and the timing associated with other
costs such as professional fees and travel. For the full year, the Company
expects general and administrative expenses to be in-line with its guidance of
3.1-3.2 percent of system-wide sales.

Other expenses were $0.4 million, compared to $1.3 million of other income
last year which was realized as a result of non-operating gain on property
sales and favorable insurance settlements.

EBITDA was $11.5 million, a margin of 24.0 percent of total revenues, compared
to $15.4 million, a margin of 28.9 percent of total revenues, last year. This
decrease was primarily due to $1.6 million for national cable advertising and
a $1.7 million variance in other expenses (income), comprised primarily of
non-operating gains and losses from property sales and insurance settlements.
AFC's EBITDA computation and reconciliation to GAAP measures is described in
detail under the heading "Use of Non-GAAP Financial Measures."

Interest expense, net was $1.7 million, compared to $2.8 million last year.
This decrease reflects the lower average interest rates and lower average debt
balances in the first quarter of 2009.

Income tax expense had an effective tax rate of 39.0 percent, compared to an
effective tax rate of 39.0 percent in the prior year.

Net income was $5.0 million, or $0.20 per diluted share, compared to $6.4
million, or $0.24 per diluted share, for last year. Excluding other
non-operating expenses or income, net income would have been $5.2 million or
$0.21 per diluted share, compared to $5.6 million or $0.21 per diluted share
last year.

The Company generated $7.1 million in free cash flow and made $3.9 million in
net debt repayments under its 2005 Credit Facility. AFC's free cash flow
computation and reconciliation to GAAP measures is described in detail under
the heading "Use of Non-GAAP Financial Measures."

The Company opened 14 restaurants globally, including 5 domestic and 9
international, compared to 37 restaurants last year. As planned, the
Company's 31 restaurant closures in the first quarter exceeded openings, but
were comparable to last year's closure of 32 restaurants. Closures consisted
of 23 domestic restaurants and 8 international restaurants.

On a system-wide basis, Popeyes had 1,909 restaurants operating at the end of
first quarter 2009, compared to 1,889 restaurants last year. Total unit count
was comprised of 1,571 domestic restaurants and 338 international restaurants
in 26 foreign countries and two territories. Of this total, 1,858 were
franchised restaurants and 51 were company-operated restaurants.

Fiscal 2009 Guidance

Given the favorable guest response to Popeyes new value offerings, the Company
is projecting global same-store sales for fiscal 2009 to be in the range of
negative 1.0 percent to positive 1.0 percent, an increase from our previous
guidance of negative 1.0 percent to negative 3.0 percent.

In the current consumer and credit market environment, and consistent with
previous guidance, the Company expects its global new openings to be in the
range of 90-110 restaurants and its closures to be in the range of 140-160
restaurants, resulting in 30-70 net restaurant closings. Popeyes restaurant
closures typically have sales significantly lower than the system average.

The Company expects fiscal 2009 general and administrative expenses to be
consistent with its previous guidance of 3.1-3.2 percent of system-wide sales,
among the lowest in the restaurant industry. The Company will continue to
tightly manage its general and administrative expenses and invest in key
strategic initiatives, including its continued commitment to national cable
advertising and operations improvements which management believes are
essential for the long-term growth of the brand.

Based on the projected improvements in same-store sales, the Company now
expects its 2009 earnings per share projection to be at the upper end of the
guidance range of $0.62-$0.67 per diluted share.

Conference Call
The Company will host a conference call and internet webcast with the
investment community at 9:00 A.M. Eastern Time on May 28, 2009, to review the
results of the first quarter of fiscal 2009. To access the Company's webcast,
go to www.afce.com, select "Investor Information" and then select "AFC
Enterprises First Quarter 2009 Earnings Conference Call." A replay of the
conference call will be available for 90 days at the Company's website or
through a dial-in number for a limited time following the call.

Corporate Profile
AFC Enterprises, Inc. is the franchisor and operator of Popeyes(R)
restaurants, the world's second-largest quick-service chicken concept based on
number of units. As of April 19, 2009, Popeyes had 1,909 restaurants in the
United States, Puerto Rico, Guam and 26 foreign countries. AFC's primary
objective is to offer excellent investment opportunities in its Popeyes brand
and provide exceptional franchisee support systems and services to its owners.
AFC Enterprises can be found at www.afce.com.

AFC Contact Information
Investor inquiries:
Cheryl Fletcher, Director, Finance & Investor Relations
(404) 459-4487 or investor.relations@afce.com

Media inquiries:
Alicia Thompson
Vice President, Popeyes Communications & Public Relations
(404) 459-4572 or popeyescommunications@popeyes.com

AFC Enterprises, Inc.
Condensed Consolidated Balance Sheets (unaudited)
As of April 19, 2009 and December 28, 2008
(In millions, except share data)

ASSETS 4/19/2009 12/28/2008
--------- ----------
Current assets:
Cash and cash equivalents $5.6 $2.1
Accounts and current notes receivable, net 13.3 13.6
Assets held for sale 3.5 4.5
Other current assets 12.2 13.8
------ ------
Total current assets 34.6 34.0
Long-term assets:
Property and equipment, net 24.0 25.3
Goodwill 11.1 11.1
Trademarks and other intangible assets, net 48.0 48.2
Noncurrent notes receivable and other
long-term assets, net 13.3 13.4
------ ------
Total long-term assets 96.4 98.0
------ ------
Total assets $131.0 $132.0
====== ======

LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities:
Accounts payable $18.7 $19.3
Other current liabilities 12.0 13.6
Current debt maturities 1.4 4.7
------ ------
Total current liabilities 32.1 37.6
------ ------
Long-term liabilities:
Long-term debt 113.9 114.5
Deferred credits and other long-term
liabilities 18.5 19.2
------ ------
Total long-term liabilities 132.4 133.7
------ ------
Total liabilities 164.5 171.3
------ ------

Commitments and contingencies

Shareholders' deficit:
Preferred stock ($.01 par value; 2,500,000
shares authorized; 0 issued and
outstanding) - -
Common stock ($.01 par value; 150,000,000
shares authorized; 25,287,915 and
25,294,973 shares issued and outstanding
at April 19, 2009 and December 28, 2008,
respectively) 0.3 0.3
Capital in excess of par value 111.1 110.5
Accumulated deficit (144.1) (149.1)
Accumulated other comprehensive loss (0.8) (1.0)
------ ------
Total shareholders' deficit (33.5) (39.3)
------ ------

Total liabilities and shareholders'
deficit $131.0 $132.0
====== ======

AFC Enterprises, Inc.
Condensed Consolidated Statements of Operations (unaudited)
(In millions, except per share data)

16 Weeks Ended
------------------------
4/19/2009 4/20/2008
--------- ---------
Revenues:
Sales by company-operated restaurants $20.8 $26.4
Franchise revenues 25.7 25.8
Rent and other revenues 1.4 1.1
------ ------
Total revenues 47.9 53.3
------ ------

Expenses:
Restaurant employee, occupancy and
other expenses 10.8 13.2

Restaurant food, beverages and packaging 6.9 9.2
Rent and other occupancy expenses 0.6 0.7
General and administrative expenses 17.7 16.1
Depreciation and amortization 1.6 2.1
Other expenses (income), net 0.4 (1.3)
------ ------
Total expenses 38.0 40.0
------ ------

Operating profit 9.9 13.3
Interest expense, net 1.7 2.8
------ ------

Income before income taxes 8.2 10.5
Income tax expense 3.2 4.1
------ ------

Net income $5.0 $6.4
====== ======
Earnings per common share, basic: $0.20 $0.24
====== ======
Earnings per common share, diluted: $0.20 $0.24
====== ======

AFC Enterprises, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(In millions)

16 Weeks Ended
------------------------
4/19/2009 4/20/2008
--------- ---------
Cash flows provided by (used in)
operating activities:
Net income $5.0 $6.4
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 1.6 2.1
Asset write downs 0.2 -
Net gain on sales of assets (0.1) (0.7)
Deferred income taxes (0.1) 0.8
Non-cash interest, net 0.1 -
Provision for credit losses 0.3 -
Stock-based compensation expense 0.6 0.8
Change in operating assets and liabilities:
Accounts receivable (0.4) 1.1
Prepaid income taxes 0.9 0.5
Other operating assets 0.8 0.5
Accounts payable and other operating
liabilities (2.0) (10.7)
------ ------
Net cash provided by operating
activities 6.9 0.8
------ ------
Cash flows provided by (used in) investing
activities:
Capital expenditures (0.2) (0.7)
Proceeds from dispositions of property and
equipment 1.0 0.7
Property insurance proceeds 0.2 -
Proceeds from notes receivable 0.3 0.3
------ ------
Net cash provided by investing
activities 1.3 0.3
------ ------
Cash flows provided by (used in) financing
activities:
Principal payments - 2005 Credit Facility
(term loan) (3.4) (8.3)
Principal payments - 2005 revolving credit
facility (0.5) -
Borrowings under 2005 revolving credit
facility - 20.0
Special cash dividend - (0.5)
Stock repurchases - (16.6)
(Increase) decrease in restricted cash (0.4) 2.7
Other, net (0.4) (0.1)
------ ------
Net cash used in financing
activities (4.7) (2.8)
------ ------

Net increase (decrease) in cash and cash
equivalents 3.5 (1.7)
Cash and cash equivalents at beginning of year 2.1 5.0
------ ------
Cash and cash equivalents at end of quarter $5.6 $3.3
====== ======

Q1 Ended Q1 Ended
4/19/2009 4/20/2008
Total Same-Store Sales --------- ---------
----------------------
Company-operated (4.1%) (5.9%)
Franchised (a) (0.2%) (1.6%)
------ ------
Total Domestic (0.3%) (1.8%)
International (b) 4.8% 3.5%
------ ------
Global 0.2% (1.3%)
Total Franchised (a and b) 0.3% (1.1%)

New Unit Openings
-----------------
Company-operated 0 0
Franchised 5 17
------ ------
Total Domestic 5 17
International 9 20
------ ------
Global 14 37

Unit Count
----------
Company-operated 51 64
Franchised 1,520 1,501
------ ------
Total Domestic 1,571 1,565
International 338 324
------ ------
Global 1,909 1,889

Use of Non-GAAP Financial Measures
EBITDA: Calculation and Definition
The following table reconciles on a historical basis for first quarter of 2009
and first quarter of 2008, the Company's earnings before interest expense,
taxes, depreciation and amortization ("EBITDA") on a consolidated basis to the
line on its consolidated statement of operations entitled net income, which
the Company believes is the most directly comparable GAAP measure on its
consolidated statement of operations to EBITDA:

(dollars in millions) Q1 2009 Q1 2008
Net income $5.0 $6.4
Interest expense, net $1.7 $2.8
Income tax expense $3.2 $4.1
Depreciation and amortization $1.6 $2.1
EBITDA $11.5 $15.4
Total Revenues $47.9 $53.3
EBITDA as a percentage of
Total Revenues (EBITDA margin) 24.0% 28.9%

Free cash flow: Calculation and Definition
The following table reconciles on a historical basis for first quarter of 2009
and first quarter of 2008, the Company's free cash flow on a consolidated
basis to the line on its consolidated statement of operations entitled net
income, which the Company believes is the most directly comparable GAAP
measure on its consolidated statement of operations to free cash flow:

(dollars in millions) Q1 2009 Q1 2008
Net income $5.0 $6.4
Depreciation and amortization $1.6 $2.1
Stock-based compensation expense $0.6 $0.8
Maintenance capital expenses $(0.1) $(0.5)
Free cash flow $7.1 $8.8

Management's Use of Non-GAAP Financial Measures
EBITDA and free cash flow are supplemental non-GAAP financial measures. The
Company uses EBITDA and free cash flow, in addition to net income, operating
profit and cash flows from operating activities, to assess its performance and
believes it is important for investors to be able to evaluate the Company
using the same measures used by management. The Company believes these
measures are important indicators of its operational strength and performance
of its business because they provide a link between profitability and
operating cash flow. EBITDA and free cash flow as calculated by the Company
are not necessarily comparable to similarly titled measures reported by other
companies. In addition, EBITDA and free cash flow: (a) do not represent net
income or cash flows from operations as defined by GAAP; (b) are not
necessarily indicative of cash available to fund cash flow needs; and (c)
should not be considered as an alternative to net income, operating profit,
cash flows from operating activities or other financial information determined
under GAAP.

Forward-Looking Statement: Certain statements in this release contain
"forward-looking statements" within the meaning of the federal securities
laws. Statements regarding future events and developments and our future
performance, as well as management's current expectations, beliefs, plans,
estimates or projections relating to the future, are forward-looking
statements within the meaning of these laws. These forward-looking statements
are subject to a number of risks and uncertainties. Examples of such
statements in this press release include discussions regarding the Company's
planned implementation of its new strategic plan including the re-franchising
of company-operated restaurants, projections and expectations regarding
same-store sales for fiscal 2009 and beyond, the Company's ability to improve
restaurant level margins, guidance for new openings and restaurant closures,
and the Company's anticipated 2009 performances including projections
regarding general and administrative expenses, net earnings per diluted share,
EBITDA margins and free cash flows and similar statements of belief or
expectation regarding future events. Among the important factors that could
cause actual results to differ materially from those indicated by such
forward-looking statements are: competition from other restaurant concepts and
food retailers, disruptions in the financial markets, the loss of franchisees
and other business partners, labor shortages or increased labor costs,
increased costs of our principal food products, changes in consumer
preferences and demographic trends, as well as concerns about health or food
quality, instances of avian flu or other food-borne illnesses, general
economic conditions, the loss of senior management and the inability to
attract and retain additional qualified management personnel, limitations on
our business under our 2005 Credit Facility, our ability to comply with the
repayment requirements, covenants, tests and restrictions contained in the
2005 Credit Facility, our ability to refinance our outstanding indebtedness,
failure of our franchisees, a decline in the number of franchised units, a
decline in our ability to franchise new units, slowed expansion into new
markets, unexpected and adverse fluctuations in quarterly results, increased
government regulation, adverse effects of regulatory actions arising in
connection with the restatement of our previously issued financial statements,
effects of volatile gasoline prices, supply and delivery shortages or
interruptions, currency, economic and political factors that affect our
international operations, inadequate protection of our intellectual property
and liabilities for environmental contamination and the other risk factors
detailed in our 2008 Annual Report on Form 10-K and other documents we file
with the Securities and Exchange Commission. Therefore, you should not place
undue reliance on any forward-looking statements.

SOURCE AFC Enterprises, Inc.

Investor inquiries: Cheryl Fletcher, Director, Finance & Investor Relations,
+1-404-459-4487 or investor.relations@afce.com, Media inquiries: Alicia
Thompson, Vice President, Popeyes Communications & Public Relations,
+1-404-459-4572 or popeyescommunications@popeyes.com