Popeyes Planning to Open 100 New Restaurants in 2007

Fast Food Operator Targets Locations on "Going Home" Commuter Routes

Atlanta-based AFC Enterprises (NASDAQ:AFCE), franchisor and operator of fast food restaurant chain Popeyes Chicken, announced plans to open at least 100 new store locations, depending on how fast it can line up franchisees.

At the end of 2006, Popeyes had 1,559 U.S. restaurants. The chicken & biscuits fast-food joints’ growth is heavily dependent on qualified existing and new franchisees opening new restaurants. Last year, the company opened 100 new U.S. restaurants, while 37 were shuttered.

Targeted growth areas for 2007 include Albuquerque, Boston, Charlotte, Cleveland, Dayton, Denver, Indianapolis, Las Vegas, Portland, Richmond, Seattle, Tulsa, Upstate New York, and Raleigh.

Popeye’s said its ideal site criteria is a corner lot of at least 25,000 square feet, with traffic light access. The company prefers locations on the 'going home' side of major commuter routes with an average daily traffic count of at least 20,000 and population counts of at least 25,000 within 2 miles, with median income between $30,000 - $85,000.

AFC Enterprises operates 56 corporate-owned stores, which includes 13 Memphis and Nashville area franchised restaurants acquired during 2006.

The prospect of Popeyes as a ground-lease tenant are favorable, as financial highlights of 2006 include sales growth of 7%; a 1.6% increase in same-stores sales, and a 6.7% increase in revenues over the previous year.