Friday, restaurant chain operator AFC Enterprises Inc. (AFCE) said it expects a decline in its third quarter profit, however, in line with analyst estimates. AFC also narrowed its full year earnings guidance.
The Atlanta, Georgia-based company estimates third quarter earnings of $0.16 per share, compared to $0.23 per share reported in the third quarter last year.
On average, two analysts polled by First Call/Thomson Financial estimate the company to report earnings of $0.15 per share for the quarter.
Third quarter total domestic same-store sales decreased 2.8%, compared to a decrease of 1.9% in the similar quarter last year. Total global same-store sales decreased 1.9%, compared to a decrease of 1.7% a year ago.
During the third quarter, the Popeyes system opened 28 new restaurants, including 12 units domestically and 16 units internationally, compared to 32 new restaurants last year. There were 24 permanent restaurant closures during the quarter.
AFC Enterprises is involved in the operation and franchising of quick-service restaurants under the brand name Popeyes Chicken & Biscuits.
The company expects its fiscal 2008 earnings to be in the range of $0.75 to $0.77 per share. The company's previous earnings per share guidance for fiscal 2008 were in the range of $0.75 to $0.80.
Total domestic same-store sales for fiscal 2008 are projected to be at the lower-end of previous guidance of negative 1.0 to 2.0%. AFC Enterprises expects global new openings to be 115-130 restaurants and net openings to be 5-15 restaurants, in line with its previous guidance.
AFC Enterprises is currently trading at $3.62, down $0.02 or 0.55% on the Nasdaq.
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