Profile: AFC Enterprises Inc (AFCE.O)

AFC Enterprises, Inc. (AFC) develops, operates, and franchises quick-service restaurants (QSRs or restaurants) under the trade names Popeyes Chicken & Biscuits and Popeyes Louisiana Kitchen (collectively Popeyes). Within Popeyes, it manages two business segments: franchise operations and company-operated restaurants. Within the QSR industry, Popeyes distinguishes itself with a Louisiana style menu, which features spicy chicken, chicken sandwiches, chicken tenders, fried shrimp and other seafood, red beans and rice and other regional items. As of December 25, 2011, the Company operated and franchised 2,035 Popeyes restaurants in 45 states, the District of Columbia, Puerto Rico, Guam, the Cayman Islands and 25 foreign countries. As of December 25, 2011, of its 1,587 domestic franchised restaurants, approximately 70% were concentrated in Texas, California, Louisiana, Florida, Illinois, Maryland, New York, Georgia, Virginia and Mississippi. Of its 408 international franchised restaurants, approximately 60% were located in Korea, Canada, and Turkey. Of its 40 company-operated restaurants, approximately 90% were concentrated in Louisiana and Tennessee. In November 2012, the Company acquired 27 restaurants in Minnesota and California.

As of December 25, 2011, the Company had 348 franchisees operating restaurants within the Popeyes system. During the fiscal year ended December 25, 2011 (fiscal 2011), the Popeyes system opened 140 restaurants, which included 73 domestic and 67 international restaurants. During fiscal 2011, the Popeyes system permanently closed 75 restaurants, resulting in 65 net restaurant openings, compared to 39 net openings. As of December 25, 2011, it leased 11 restaurants and subleased 51 restaurants to franchisees. In addition, it leased three properties to unrelated third parties. Of the restaurants leased or subleased to franchisees, 35 were located in Texas. It has several agreements with the King Features Syndicate Division (King Features) of Hearst Holdings, Inc. under which it has the non-exclusive contractual right to use the image and likeness of the cartoon character Popeye in the United States.