Popeyes Louisiana Kitchen Inc.

Popeyes Louisiana Kitchen Inc., previously known as AFC Enterprises, is located in Atlanta Georgia.^[1] Popeyes Louisiana Kitchen Inc. is the franchiser and operator of Popeyes restaurants like Popeyes Chicken and Biscuits and Popeyes Louisiana Kitchen. The main goal for Popeyes Louisiana Kitchen Inc. is to create investment opportunities by increasing sales and profits for its brand and to create more franchisees support systems for Popeyes restaurants.^[2][3]

Management

Cheryl Bachelder the CEO of Popeyes Louisiana Kitchen Inc. stated that Popeyes had a great prosper. The annual store sales increased 1.7% in 2016. They are planning on opening 216 global stores, 118 domestic stores, and 98 international stores. Cheryl who was hired in 2006 is resigning as CEO after the transaction with Restaurant Brands International Inc. was announced. In 2006, she was one of the board directors. In 2007, she was promoted to CEO where she worked with the leadership team making Popeyes a strong brand.^[4] Popeyes Louisiana Kitchen Inc. has reported its 2016 preliminary Fiscal operating results. Popeyes Louisiana Kitchen Inc. is selling Popeyes Louisiana Kitchen to Restaurant Brand.^[5][4]

Takeover

Restaurant Brands International is offering 1.8 billion dollars for the maker of Popeyes bonafide chicken meal. This deal will give the Brazilian founders a huge profit. Popeyes Louisiana Kitchen Inc. has a 37% better Ebitda margin than the industry and a 4% sales increase. Popeyes Louisinana Kitchen Inc. will continue to increase its profit as Restaurant Brand improves their margin work on Popeyes.^[6][7][8] Popeyes Louisiana Kitchen Inc. shares were settled at $78.73 in New York just slightly below the price that was offered by Restaurant Brand. There is little risk that this transaction will fall apart to the traders.^[9] Popeyes Louisiana Kitchen Inc. bought the recipes that they used for many of their dishes for 43 million dollars from Diversified Foods and Seasonings.^[10]

Advertising

Popeyes Louisiana Kitchen Inc. uses Spotify playlist for their ad campaign. They are working with Marcus Hubbard of Soul Rebels^[11] to promote their playlist. Popeyes Louisiana Kitchen Inc. set up this website for the customers to suggest what music they think will work in the commercials and to be added to their playlist that they play in the restaurant. For their commercials, they use Mrs. Henry as the spokeswomen for their commercials because she can relate to the customers and speaks to them directly. Popeyes Louisiana Kitchen Inc. loves to provide new limited time offers that will excite the customers and draw them into their restaurants to enjoy the food. Popeyes Louisiana Kitchen Inc. spends over $8 million on promotion media. In 2009, Popeyes Louisiana Kitchen Inc. spent over $70.3 million in advertising.^[12] Popeyes Louisiana Kitchen Inc. has narrowed the account of Popeyes Chicken and Biscuits advertising to Austin Kelly Advertising in Atlanta, Avertt Free & Ginsberg in New York, and Cramer-Krasselt in Chicago as their three finalists.^[13]

Partners help Popeyes Louisiana Kitchen in celebrating its 5th year of partnering with Coca-Cola with its holiday collector cups. Popeyes Louisiana Kitchen Inc. worked with Coca-Cola’s artists to create four designs that captured the holiday season in 2016. The first design was Santa Claus who appeared on three of the cups. The first one is when he is putting Popeyes favorite snack boxes in the stockings, the second one is when he is in New Orleans going down the chimney of the French Quarter, and the third is when he is relaxing on a beach at sunset watching the Popeyes' Bahama Bowl. The other design is Coca-Colas Classic polar bears. On the cup, the polar bears are playing Zydeco music, which is a big thing in Louisiana.^[14]

Profit

Popeyes Louisiana Kitchen Inc. has a $1.4 million annual revenue. In 2015, for every location the average franchise is $340,000. In 2008, they had $188,000. In 2016 Popeyes Louisiana Kitchen Inc. opened 216 more new stores from their 219 that they opened in 2015.^[15] On Wednesday February 22 Popeyes Louisiana Kitchen showed the results of its profit. They earned $0.48 per share beating the estimate of $0.47 by $0.01. They had a revenue of $61 million instead of $59.91 million that was estimated. Their equity was 132.85% and their net margin was 16.19%. They have a 3.4% yearly revenue.^[16][17][17]

In 2016 Popeyes Louisiana Kitchen, Inc. (PLKI) had $42.8 million for their net income compared to their net income in 2015 where they had $44.1 million. Their income for each diluted share in 2016 is $2.12. In 2015 they had $1.91. They had an 11% increase in 2016.^[4]

In the fourth quarter the global stores had a 2.8% increase in sales. The domestic had 3.0%. For the compound 2 year the global store increased to 5.7%. At the end of the year the global store had an increase of 1.7%. Compounded they had a 7.7% growth in their sales. Popeyes Louisiana Kitchen Inc. is working with its lenders on its $250 million credit to get an expansion of $150 million so it would have a 2.5 to 3.5 leverage ratio at the end of 2017. Popeyes Louisiana Kitchen Inc. plans on updating their uses of cash and debt in their fourth quarter earnings report.^[18]

Locations

Restaurant Brand Inc. plans on expanding Popeyes’ population not only in the U. S. but in other countries too. Currently in America Popeyes Louisiana Kitchen Inc. has over 2,600 restaurants. For out of the U.S. they have 216 locations.^[19] Popeyes Louisiana Kitchen Inc. has many franchises that go by Popeyes Louisiana Kitchen and Popeyes Chicken & Biscuits. There are two ways that Popeyes Louisiana Kitchen Inc. operates the franchises. The first way is the franchise and operations and the second way is through company operated restaurants.^[16] In 2016 Popeyes Louisiana Kitchen opened 216 restaurants: 52 domestic, 37 international, and 127 global. In 2016 Popeyes Louisiana Kitchen Inc. had to close 57 restaurants. In 2016 Popeyes Louisiana Kitchen Inc. had 2,688 restaurants in the U.S and 25 in foreign countries.^[18]

[1] Press, The Canadian. “Parent of Tim Hortons to Buy Popeyes Restaurant Chain for $1.8B.”Thestar.com, 21 February 2017, www.thestar.com/business/2017/02/21/parent-of-tim-hortons-to-buy-popeyes-restaurant-chain-for-18b.html. Accessed 16 March 2017.

[2]Charbonneau, J. (2017, March 13). Short Interest in Popeyes Louisiana Kitchen Inc (PLKI) Decreases By 31.2%. Retrieved March 16, 2017, from https://www.chaffeybreeze.com/2017/03/13/short-interest-in-popeyes-louisiana-kitchen-inc-plki-decreases-by-31-2.html

[3] “Popeyes Louisiana Kitchen, Inc. Reports Preliminary Fiscal 2016 Operating Results.”Popeyes Louisiana Kitchen, Inc. Reports Preliminary Fiscal 2016 Operating Results, 9 January 2017, www.businesswire.com/news/home/20170109006313/en/.

[1] Bomey, N. (2017, February 21). Burger King owner to buy Popeyes fried chicken for $1.8B. Retrieved March 16, 2017, from http://www.usatoday.com/search/Popeyes%20Louisiana%20Kitchen%20Inc./

[3] McGuire, C. (2017, February 25). Popeyes Louisiana Kitchen, Inc. to Post FY2017 Earnings of $2.53 Per Share, Feltl & Co. Forecasts (PLKI). Retrieved March 16, 2017, from https://www.chaffeybreeze.com/2017/02/25/popeyes-louisiana-kitchen-inc-to-post-fy2017-earnings-of-2-53-per-share-feltl-co-forecasts-plki.html

[1] Levere, Jane L. “Popeyes Offers Chicken With Its Own Playlist.” The New York Times, The New York Times, 4 August 2014, www.nytimes.com/2014/08/04/business/popeyes-offers-chicken-with-its-own-playlist.html. Accessed 16 March 2017.

[2] “THE MEDIA BUSINESS: ADVERTISING -- ADDENDA; 3 Agency Finalists For Popeyes Account.” THE MEDIA BUSINESS: ADVERTISING -- ADDENDA; 3 Agency Finalists For Popeyes Account, www.nytimes.com/2003/08/14/business/the-media-business-advertising-addenda-3-agency-finalists-for-popeyes-account.html.

[3] “Popeyes® and Coca-Cola® Release Four NEW Collector Cups for the Holiday Season.”Popeyes® and Coca-Cola® Release Four NEW Collector Cups for the Holiday Season, 21 November 2016, www.businesswire.com/news/home/20161121005660/en/. Accessed 23 March 2017.

[1] Laughlin, Lauren Silva. “Restaurant Brands Takes a Bite Out of Popeyes.” The New York Times, The New York Times, 21 February 2017, www.nytimes.com/2017/02/21/business/dealbook/restaurant-brands-takes-a-bite-out-of-popeyes.html. Accessed 16 March 2017.

[3] Press, T. A. (2017, February 21). Burger King's parent is buying the Popeyes chicken chain for $1.8 billion. Retrieved March 16, 2017, from http://www.latimes.com/business/la-fi-burger-king-popeyes-20170221-story.html

[4] Porter, Ed Hammond Kiel. “Popeyes Said to Have Snubbed Bid From Arby's During Sale.”Yahoo! News, Yahoo!, 21 February 2017, finance.yahoo.com/news/popeyes-said-snubbed-bid-arbys-185929464.html. Accessed 16 March 2017.

[5] Press, The Associated. “Popeyes Buys Recipes From Its Spice Supplier.” The New York Times, The New York Times, 17 June 2014, www.nytimes.com/2014/06/18/business/popeyes-buys-recipes-from-its-spice-supplier.html. Accessed 16 March 2017.

[1] Cheryl Bachelder to Step Down as CEO of Popeyes Louisiana Kitchen, Inc. Upon Closing of Transaction with Restaurant Brands International Inc.” Business Wire, 2 March 2017, www.businesswire.com/news/home/20170302005710/en/. Accessed 23 March 2017.

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