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Popeyes Louisiana Kitchen: New Orleans Style

February 23, 2015

Popeyes Louisiana Kitchen, Inc. is in the business of developing, operating, and franchising quick-service restaurants. It was founded in 1992 in Atlanta, Georgia as AFC Enterprises, Inc. with trade names Popeyes® Louisiana Kitchen and Popeyes® Chicken & Biscuits. AFC Enterprises, Inc. changed its name to Popeyes Louisiana Kitchen, Inc., in January 2014. It is traded on Nasdaq under the ticker symbol “PLKI”. Popeyes runs two business segments, Franchise Operations and Company-Operated Restaurants.

The Popeye® brand was founded in New Orleans, Louisiana in 1972. It claims to be the world’s second largest quick-service chicken concept (based on the number of units). There are many quick service concepts and many are also into chicken. To stand out companies must have their own unique identity. For Popeyes they distinguish themselves with a unique “New Orleans” style menu. The menu includes spicy chickens, chicken tenders, fried shrimps, and other seafoods, as well as jambalaya, Red Beans, and Rice and other regional items. They have managed to differentiate their brand harking on their passion for their Louisiana heritage and flavorful authentic food.

Popeye announced in the beginning of 2008 it business strategy of capitalizing on their strength as a highly franchised restaurant system. The model provides diverse and reliable earnings with steady cash flow, and relatively low capital spending requirements. Over the past five years, the cash flow produced by their model has been used primarily to pay down debt and repurchase stock to enhance shareholder value.

Popeye’s strategy is built on the foundation of aligning and collaborating with its stakeholders, and is focused on the five pillars of its Strategic Plan namely: create a culture of servant leaders, build on a distinctive brand, run great restaurants, grow restaurant profits, and accelerate quality restaurants.

The firm operates and franchises more than 2,000 Popeyes restaurants globally. It has 1,600 domestic franchises of which 70 percent are concentrated in Texas, California, Louisiana, Florida, Illinois, Maryland, New York, Georgia, Virginia, and Mississippi. There are nearly 400 international franchised restaurants.

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