Popeyes Louisiana Kitchen, a division of AFC Enterprises, Inc., has launched its Louisiana Leaux (pronounced “low”) program of better-for-you menu alternatives with a dancing-in-the-streets celebration held in the French Quarter of Popeyes’ heritage home, New Orleans. The new program sees the return of Popeyes’ Naked Chicken Tenders to the menu, as well as the addition of two new lower calorie side items – green beans and apple sauce.

The Louisiana Leaux program delivers the quality and flavor Popeyes’ guests expect, while significantly reducing fat, calorie, and sodium content, in comparison with other menu items. It also introduces the new Get Up & Geaux (pronounced “go”) Kids Meal to offer better-for-you eating options for children and their parents.

“We know how much people love Popeyes’ authentic, Louisiana recipe-inspired menu,” said Cheryl Bachelder, president and chief executive officer for Popeyes Louisiana Kitchen. “As part of living a healthier lifestyle, we wanted to provide options for our guests that allow them the opportunity to eat at Popeyes even more often by offering flavorful, better-for-you alternatives.”

Popeyes is celebrating the launch of its Louisiana Leaux – Get up & Geaux! program in The French Quarter today. To promote healthy eating and movement through dance, Popeyes-lovers will participate in a flash mob coordinated dance down Bourbon Street, march along with second line bands and celebrate New Orleans-style.

“We turned Times Square orange last year to announce Popeyes Beat KFC in a national test taste, so it’s only appropriate we launch and celebrate Louisiana Leaux in our birthplace, dance in the streets of the French Quarter and turn IT orange,” said Bachelder.

The new Louisiana Leaux menu features:

• Naked Chicken Wrap: A cheese tortilla wrap topped with a Naked Tender, lettuce and pickles
• Naked BBQ Chicken Po Boy: A toasted Po Boy baguette featuring two Naked Tenders and topped with BBQ sauce, lettuce and pickles
• Naked Tenders Meal: Three seasoned Naked Tenders served with green beans and a toasted baguette roll
• “Get Up & Geaux” Kids Meal: Two Naked Tenders served with apple sauce, toasted baguette roll and zero calorie drink

All restaurants will be equipped with Louisiana Leaux brochures that provide nutritional information as well as additional meal options so guests can enjoy other flavorful favorites on the Popeyes menu while maintaining a balanced lifestyle.

For Louisiana Leaux nutritional information, please visit www.popeyes.com and click on the Louisiana Leaux logo, or click on Food, Menu, and then the green “Louisiana Leaux” tab.

If you need new ideas on increasing customer traffic, making loyalty programs pay off or improving upselling, try tapping your staff for new information rather than hiring outside consultants. Engaging your employees gathers information from the people who are actually interacting with customers. This encourages organic idea creation that improves your business in surprising ways.

Popeyes Louisiana Kitchen is bringing back their famous Wicked Chicken for a limited time. The Cajun spices mixed into the batter gives the chicken strips a hot kick. Each meal comes with 5 strips, a fresh buttermilk biscuit, ranch dressing and a mini bottle of Tabasco. The special chicken will only be available for a limited time in June.

Real Mex Restaurants is on the search for a new President and CEO after Carlos Angulo gave his resignation. Rick Dutkiewicz is acting as the interim President as the company commits to a nationals search to find the best representative for the position. The chain is the largest casual full service Mexican dining brand in the United States.

Boddie-Noell Enterprises, a franchisee in the Hardee’s brand, has received the coveted 2011 Wilber Hardee Founder’s Award. This award was given to the company for exemplifying the vision of the brand and making a difference in the community. This franchisee company operates 335 locations and is the largest single operator of the Hardee’s chain.

Bojangles’, the national fried chicken fast food chain, awarded its top unit directors and area managers at the annual leadership conference. Jayesh Patel, a unit director in Buford, GA, won a 5 day cruise and a $800 prize as the top Unit Director. Janet Lynch won the Area Director award with the same rewards for her work in the Albemarle area of North Carolina.

Carino’s Italian has a location in tornado damaged Joplin, Missouri and they have announced their plans to donate free food and drinks to all disaster relief workers. Deliveries will be made to clean up sites and to emergency family shelters. Many staff members and regular customers of the Carino’s location were affected by the tornadoes.

Oscar Mayer’s Wienermobile is turning 75. To celebrate the company will be unveiling the new Wienermobile Food Truck. Customers who visit the new Food Truck in Times Square, New York City will receive a free all-beef frank with their choice of toppings. The truck will be traveling to select events throughout the summer and will donate $50,000 to the Feeding America charity.

Another BRIO Tuscan Grille location has opened in San Antonio, making this the 88^th location for the BRIO chain. This restaurant combines authentic Tuscan cuisine with a casual but upscale environment. The BRIO brand is owned and operated by the BRAVO | BRIO Restaurant Group that also produces the BRAVO! Cucina Italiana brand.

The newest Pizza Patron location opened last week, bringing the new brand’s total up to 12 restaurants. The Pizza Patron brand uses special Lincoln Quick Cook ovens to produce fresh pizza in a few minutes, making this one of the first Quick Service Pizza chains. Customers won’t have to wait 10-20 minutes or settle for pizza that has sat under a heat lamp for hours.

AFC Enterprises, Inc., the franchisor and operator of Popeyes restaurants, today reported results for its fiscal first quarter which ended April 17, 2011. The Company also reaffirmed its fiscal 2011 guidance and provided a business update on its Strategic Plan.

First Quarter 2011 Highlights Compared to First Quarter 2010:

• Reported net income was $7.2 million, or $0.28 per diluted share, compared to $5.8 million, or $0.23 per diluted share, last year. Adjusted earnings per diluted share were $0.27 compared to $0.23 in 2010. This improvement was primarily due to stronger same-store sales and lower interest expense. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
• Global system-wide sales increased 6.9 percent compared to a 2.1 percent increase last year.
• Global same-store sales increased 3.9 percent compared to a 0.3 percent decrease last year. Domestic same-store sales increased 3.9 percent compared to a 0.4 percent decrease in 2010. According to independent data, in the first quarter 2011, Popeyes same-store sales outpaced the chicken QSR category for the 12^th consecutive quarter and the QSR category for the 4^th consecutive quarter. International same-store sales increased 4.1 percent compared to a 1.2 percent increase last year.
• The Popeyes system opened 32 restaurants and permanently closed 14 restaurants, resulting in 18 net openings compared to 5 net openings last year.
• Operating EBITDA was $13.3 million, at 28.4 percent of total revenue, compared to first quarter 2010 of $13.3 million, at 30.4 percent of total revenue. The decrease in Operating EBITDA as a percent of total revenue was primarily due to investments in general and administrative expenses. Operating EBITDA is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
• The Company’s free cash flow was $6.9 million, which included $0.5 million of other income, compared to $6.3 million in 2010, which included $0.1 million of other income. The Company used $6.5 million of cash to repurchase 438,288 shares of common stock under the Company’s current Share Repurchase Program. Free cash flow is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

AFC Enterprises Chief Executive Officer Cheryl Bachelder stated, “We delivered another strong quarter of positive results operationally and financially. This growth was primarily driven by global top-line sales momentum from both same-store sales and new unit growth, as we continue to focus on our strategic roadmap. Our restaurants are managing in a tough commodity environment by keeping sales strong, selectively raising prices, and tightly controlling labor. We remain on track to deliver our 2011 goals.”

Strategic Plan Update

The Company’s Strategic Plan is built on the foundation of the Four Pillars below.

1. Build the Popeyes Brand

• In March, Popeyes promoted its signature Butterfly Shrimp Tackle Box featuring 8-pieces of Butterfly Shrimp with Cajun fries and a buttermilk biscuit for only $4.99. This promotion was supported with national media advertising.
• On March 23, the Popeyes system offered its customer appreciation “Pay Day” promotion for the third consecutive year. This one-day event featured 8-pieces of Popeyes famous Bonafide chicken for only $4.99.
• In May, to continue the celebration of Popeyes spicy and mild bone-in fried chicken beating KFC’s Original Recipe bone-in fried chicken in a national taste test, Popeyes launched a Buy One, Get One free Bonafide chicken promotion. This Limited Time Offer (“LTO”) featured a free 2-piece meal with the purchase of a 3-piece meal at regular menu price.
• Starting May 30, Popeyes will promote Wicked Chicken, one of its most successful LTOs. Supported with national media, this promotion will feature Wicked Chicken, Cajun fries, a buttermilk biscuit, ranch dipping sauce and a mini bottle of Tabasco Pepper Sauce for only $3.99.
• International franchisees also continue to successfully leverage marketing strategies of innovation and value, such as “Pay Day”, to drive guests into Popeyes restaurants.

2. Run Great Restaurants

• During the first quarter, Popeyes restaurants continued to experience steady improvements in Guest Experience Monitor (“GEM”) scores with “% Delighted” and “Speed of Service” scores both up approximately two percentage points over year end 2010.
• Since system-wide adoption of Popeyes Speed of Service initiatives, restaurant average weekly drive-thru times have improved significantly, reducing the time by approximately 30 seconds.
• Popeyes is also implementing measurement tools around core operating systems across the Company’s international markets. At the end of the first quarter, GEM was in place in approximately one third of the Company’s international restaurants.

3. Strengthen Unit Economics

• In the first quarter, Popeyes restaurants experienced an approximate 6 percent increase in food costs compared to last year, primarily the result of higher commodity costs. On a full year basis, the Company now expects food costs to increase by 4-5 percent which equates to approximately 150 basis points on restaurant operating profit margins. As previously indicated, management expects these costs to be partially offset by top-line sales growth, additional supply chain cost savings, selective menu pricing and in-restaurant cost controls.
• The Company is also focusing on restaurant profitability in its international markets, where food costs are typically higher. Some of the activities include localized product sourcing, regional volume leverage and stronger strategic supplier partnerships. These cost-reducing activities are being implemented to make Popeyes’ restaurant cost structure more competitive around the globe.

4. Ramp Up New Unit Growth

• The Company’s global development pipeline for new unit openings continues to strengthen, with both a greater number of projects underway and a more balanced schedule of expected openings throughout the year.
• Internationally, the Company is now applying the same successful strategic discipline and approach evidenced in the brand’s domestic business. Management expects this will lead to a deliberate and sustainable long-term international growth plan.

First Quarter 2011 Financial Performance Compared to First Quarter 2010

Global system-wide sales increased by 6.9 percent. System-wide sales were comprised of $575.4 million in franchise restaurant sales and $17.6 million in Company-operated restaurant sales.

Global same-store sales increased 3.9 percent compared to a 0.3 percent decrease in 2010. Total domestic same-store sales increased 3.9 percent compared to a 0.4 percent decrease last year. According to independent data, in the first quarter 2011, Popeyes same-store sales outpaced the chicken QSR category for the 12^th consecutive quarter and the QSR category for the 4^th consecutive quarter.

International same-store sales increased 4.1 percent and represented the 5^th consecutive quarter of positive same-store sales. This increase was primarily driven by strong same-store sales in Turkey, Latin America and Canada partially offset by Korea and U.S. military bases abroad.

Total revenues were $46.8 million, compared to $43.8 million last year. This increase was primarily attributable to positive same-store sales and sales from new restaurants opened in 2010.

Company-operated restaurant operating profit (“ROP”) was $3.4 million, or 19.3 percent of sales, compared to $3.2 million, or 19.9 percent of sales, last year. The $0.2 million increase in ROP was primarily due an increase in same store sales of 6.4 percent partially offset by higher food costs as a result of increased commodity costs. Company-operated Restaurant Operating Profit is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

General and administrative expenses were $18.5 million, or 3.1 percent of system-wide sales, compared to $16.8 million, or 3.0 percent of system-wide sales, last year. This increase was primarily attributable to selective investments to support global new restaurant development.

Other income was $0.5 million, primarily due to a net gain on the sale of two real estate properties.

Operating EBITDA was $13.3 million, at 28.4 percent of total revenue, compared to first quarter 2010 of $13.3 million, at 30.4 percent of total revenue. The decrease in Operating EBITDA as a percentage of total revenue was primarily due to investments in general and administrative expenses, partially offset by revenue from stronger same-store sales. Operating EBITDA is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

Operating profit was $12.5 million, compared to operating profit of $12.2 million last year.

Interest expense, net was $1.1 million, a $1.7 million decrease from 2010. This decrease was primarily due to lower average interest rates under the Company’s new 2010 credit facility, and lower amortization for bank fees and swap settlement charges recognized in first quarter 2010.

Income tax expense was $4.2 million, yielding an effective tax rate of 36.8 percent, compared to an effective tax rate of 38.3 percent in the prior year. The effective rates differ from statutory rates due to tax credits.

Reported net income was $7.2 million, or $0.28 per diluted share, compared to $5.8 million, or $0.23 per diluted share, in 2010. Adjusted earnings per diluted share were $0.27 compared to $0.23 last year. This improvement was primarily due to stronger same-store sales and a decrease in interest expense, net. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

Free cash flow was $6.9 million, which included $0.5 million of other income, compared to $6.3 million in 2010, which included $0.1 million of other income. Free cash flow is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

During the first quarter, the Company repurchased 438,288 shares of its common stock for approximately $6.5 million.

During fiscal year 2011 through May 25, 2011, AFC has repurchased 1,085,036 shares of common stock for approximately $16.2 million. These purchases were made in accordance with the Company’s previous stock repurchase guidance for 2011 of $20-$25 million. As of May 15, 2011, approximately 24.8 million shares of the Company’s common stock were outstanding.

The Popeyes system opened 32 restaurants in the first quarter, which included 11 domestic and 21 international restaurants, compared to 17 openings last year. The Company permanently closed 14 restaurants, resulting in 18 net openings compared to 5 net openings in the first quarter of 2010. The 14 closures in 2011 included 6 domestic and 8 international restaurants.

On a system-wide basis, Popeyes had 1,997 restaurants operating at the end of the first quarter, compared to 1,944 at the end of the first quarter 2010. Total unit count was comprised of 1,587 domestic restaurants and 410 international restaurants in 25 foreign countries and three territories. Of this total, 1,959 were franchised restaurants and 38 were Company-operated restaurants.

Fiscal 2011 Guidance

The Company reaffirms its expectation that Popeyes global same-store sales growth will be in the range of positive 1.0 to 3.0 percent. This guidance reflects stronger same-store sales in the first half of the year and softer in the second half, as Popeyes restaurants roll over strong same-store sales from the third and fourth quarters of 2010.

Global new openings are still expected to be in the range of 120-140 restaurants. As previously indicated, international new unit openings are expected to remain on pace with 2010 growth of approximately 60 restaurants.

Consistent with previous guidance, the Company projects system-wide unit closings will be in the range of 60-80 restaurants, resulting in 40-80 net openings as compared to 39 net openings in 2010.

The Company continues to expect general and administrative expenses will be in the range of $60-$62 million, at a rate of 3.1-3.2 percent of system-wide sales, among the lowest in the restaurant industry. As previously disclosed, this expense includes $1.0 million for a planned corporate office relocation. Absent this unusual item, general and administrative expenses as a percent of system-wide sales would be 3.0-3.1 percent.

The Company now expects 2011 reported earnings per diluted share will be in the range of $0.87-$0.91, which includes $0.5 million of other income, net, recognized in the first quarter primarily from the sale of two real estate properties; compared to the previous guidance of $0.86-$0.90. The Company continues to expect adjusted earnings per diluted share will be in the range of $0.91-$0.95, compared to $0.86 in 2010. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.” Full year 2011 adjusted diluted earnings per share excludes approximately $1.5 million for the corporate office relocation ($1.0 million for general and administrative expenses and $0.5 million for depreciation and other expenses).

Corporate Profile

AFC Enterprises, Inc. is the franchisor and operator of Popeyes restaurants, the world’s second-largest quick-service chicken concept based on number of units. As of April 17, 2011, Popeyes had 1,997 operating restaurants in the United States, Puerto Rico, Guam, and the Cayman Islands and 25 foreign countries. AFC’s primary objective is to deliver sales and profits by offering excellent investment opportunities in its Popeyes brand and providing exceptional franchisee support systems and services to its owners.

Popeyes Louisiana Kitchen, a division of AFC Enterprises, Inc., has announced its philanthropic arm, The Popeyes Foundation, Inc., and its franchisees will partner with the National Restaurant Association Educational Foundation’s (NRAEF) ProStart program. The two-year high school program unites industry and the classroom to introduce students nationwide to career opportunities available in the industry. By partnering with ProStart, the Popeyes Foundation will further its mission to develop the next generation of passionate, food-zealot Popeyes restaurateurs while providing mentoring, internship, and training opportunities for ProStart students and teachers.

According to the National Restaurant Association, the restaurant industry accounts for 12.8 million jobs, or 10 percent of the nation’s total work base. This figure is projected to increase by 1.8 million jobs in the next decade. Despite the significant job opportunity represented by restaurant and foodservice management, the industry has experienced a recent decline in new entrants.

“The viability of the restaurant industry depends on the development, commitment and skill of the next generation of restaurant professionals,” said Cheryl Bachelder, president and chief executive officer for Popeyes. “To this end, we re-invigorated the Popeyes Foundation around a mission that reflects our brand’s strong heritage of entrepreneurship. Our hope is that this partnership will help advance the next generation of dedicated, passionate leaders – not only for our brand, but for our entire industry.”

By bringing industry and the classroom together, ProStart gives students a platform to discover new interests and talents and opens doors for fulfilling careers. It all happens through a curriculum that teaches all facets of the restaurant and foodservice industry, inspires students to succeed and sets a high standard of excellence for students and the industry. With national and local support from industry members, educators, the National Restaurant Association Educational Foundation and state restaurant associations, ProStart reaches 90,000 students in 1,700 schools nationwide.

As part of the Popeyes Foundation partnership, Popeyes will offer restaurant training for ProStart educators, as well as mentored work opportunities and internships with franchisees for ProStart students. Through ProStart’s curriculum and hands-on experience with Popeyes, students will develop the culinary and management skills needed to become successful business owners and restaurant professionals.

“Real-world experience with the industry’s best-known companies is an exciting and effective way to strengthen the caliber of the future leaders of the restaurant industry,” said Dawn Sweeney, president and CEO of the National Restaurant Association and NRAEF. “Through strategic partnerships with established and well-respected foodservice brands, our ProStart students gain practical skills that help shape their futures. Further, our partners have the opportunity to connect students’ present performance with their future potential, and recruit long-term employees who are already committed to pursuing a rewarding career in the restaurant industry. ”

Founded in 1972 in New Orleans, Popeyes is a leader in the New Orleans segment of the foodservice industry and is the world’s second largest quick-service chicken concept. As of December 26, 2010 Popeyes had 1,977 restaurants in the United States, Guam, Puerto Rico, the Cayman Islands, and 26 foreign countries.

Over 75 million diners will enjoy a brunch or dinner on Mother’s Day at a favorite restaurant according to estimates released by the National Restaurant Association. Over 50% of mothers surveyed indicated that they would like to dine out to take a break from cooking and cleaning on May 8^th. Restaurant gift cards are also a top gift for this Mother’s Day due to the flexibility and choice offered.

India has become the focus for many restaurants and fast food chains as they search for international growth opportunities. A growing middle class and a developing taste for American fare like burgers, ice cream and coffee are giving many chains unrivaled opportunities in metro areas like New Delhi. Chains like Kentucky Fried Chicken and Pizza Hut are already enjoying great popularity in India.

Popeyes is famous for their Louisiana style fried chicken, and they want everyone to get a taste. From now until the end of May all customers who purchase a Bonafide three piece chicken dinner will receive a free two piece meal. Both meals feature a side and a biscuit, making this a perfect deal for big eaters or couples who are looking for a inexpensive but tasty meal.

The COO of Luby’s, Harris J. Pappas, has retired at 66 and will be replaced by Peter Tropoli. Pappas will remain a important member of the Board of Directors for the restaurant chain. Benjamin Coutee will take over Tropoli’s current role of Senior Vice President. Chris Pappas will remain the CEO of the company until at least August 2012.

As restaurants look for new ways to reduce waste and promote environmentally friendly methods, some are turning to composting their food waste. Restaurants generate thousands of pounds of food each month that can’t be sold or eaten, and composting takes this waste and converts it into eco-friendly fertilizer. A number of companies are starting up around the country to help food establishments compost their waste.

Desert Island Restaurants, the parent company of Asian fusion fast casual chain Ling & Louie’s Asian Bar and Grill, has announced plans for aggressive expansion with their top brand. The company recently opened its 5^th location in Idaho and wants to develop new restaurants from coast to coast by the deadline of 2013. The West Coast will soon be secured by a Anchorage, Alaska location opening next week.

YUM! Brands is a international restaurant company that owns brands like Pizza Hut, Taco Bell and KFC. The company is making a offer to the Chinese based Little Sheep Group Limited to buy the Little Sheep restaurant brand as well. Little Sheep is a chain of hot pot restaurants operating mainly in China and Mongolia, and the acquisition would cement YUM Brands’ position in Asia.

The newest KFC restaurant has been designed with energy conservation and environmentally friendly practices in mind. Located in Indianapolis, Indiana, the restaurant was built with recycled and sustainable building materials and water conservation equipment. It also uses 25 percent less electricity than traditional KFC locations due to efficient cooking equipment and LED lighting.

A new restaurant in Phoenix, Arizona has combined indulgent meals with healthy ingredients to make a delicious menu. Tryst Cafe uses organic, gluten free and hormone free ingredients to create great sandwiches, breakfast items like pancakes and waffles and entrees like Seared Ahi Tuna. Even the wine and beer to accompany your meal is organic.

Church’s Chicken announced today that its renowned Spicy Chicken won a national, independent Spicy Chicken taste test against Popeyes Spicy Chicken. The QSR chain celebrated in its birthplace of San Antonio, Texas at an event with hundreds of Church’s Chicken fans and all its corporate and field employees who flew in to commemorate the big win.

Hosting the event today was Hulk Hogan, a huge fan of Church’s Chicken who knows all about competition and winning big. Crowds gathered early in the heart of San Antonio at the historic Main Plaza to wait for the big announcement and indulged in the free lunch of Church’s winning Spicy Chicken. Hogan presided over the festivities that looked like a political rally with hundreds of fans holding placards that read CHURCH’S BEAT POPEYES IN A NATIONAL SPICY CHICKEN TASTE TEST. He also led the crowd in a huge celebration chicken dance and cheer.

“I’ve been a fan of Church’s for a long time,” said Hulk Hogan, of TNA Wrestling. “And beating the competition is always fun. My fans and Church’s fans won big today too. Church’s treated everyone to a free lunch. I’ve never seen so much Spicy Chicken and biscuits in one place!”

Church’s is sharing its winning news with its first national advertising campaign in ten years. The campaign makes its debut starting today on network, national cable, syndicated programming and in local markets.

The campaign stars the brand’s recurring two characters – restaurant team member Doug, the Chicken Genius and his Manager. They are seen in an RV wrapped with signage — Church’s Beat Popeyes in a National Spicy Chicken Taste Test — traveling around the country and getting the attention of Church’s fans. The :15 and :30 second television and radio spots, in both English and Spanish tout the winning news in a fun and engaging manner. The campaign will also be supported by direct mail and outdoor billboards.

“This will be the first time for many people coast-to-coast to see our advertising campaign and learn more about Church’s winning Spicy Chicken,” said CEO and president Mel Deane. “Taste buds don’t lie. The participants in the taste test preferred Church’s Spicy Chicken to Popeyes Spicy Chicken. The heat is on to continue to win over all the Spicy Chicken fans out there who crave great taste and low prices.”

In addition, the RV made its first real stop in San Antonio where Church’s leadership team delivered Church’s Chicken meals to several local shelters in need of support. The RV will be traveling to cities across the country with Church’s Chief Chicken Officer Kirk Waisner to celebrate the brand’s success, share the winning news and deliver meals to shelters.

“We have extremely loyal Spicy Chicken fans at Church’s,” said Kirk Waisner, Church’s Chief Chicken Officer. “Our Spicy chicken is marinated for twelve hours and has the perfect balance of heat and flavor. Winning this national taste test only confirmed what all of us at Church’s Chicken already knew and now America does too.”

For a limited time only at participating Popeyes restaurants, from April 25 through May 29, customers who buy a 3-piece Bonafide Chicken dinner (3 pieces of chicken, a side and a biscuit) at the regular menu price, will receive a 2-piece dinner (2 pieces of chicken, a side and a biscuit) for FREE!

“The August 2010 national taste test comparing Popeyes to category leader KFC proved that consumers can taste the difference, and truly prefer chicken from the land of good cooking – Popeyes’ culinary roots of Louisiana,” said Dick Lynch, Popeyes Chief Marketing Officer. “This BOGO offer is our way of further thanking our customers for loving our Popeyes chicken. And for those that haven’t yet tried our Bonafide chicken, we invite you to do so and decide for yourself.”

Popeyes Bonafide chicken is marinated for 12 hours in Louisiana spices, then hand-battered and fried fresh.

Founded in 1972 in New Orleans, Popeyes is a leader in the New Orleans segment of the foodservice industry and is the world’s second largest quick-service chicken concept based on the number of units. As of December 26, 2010, Popeyes had 1,977 restaurants in the United States, Guam, Puerto Rico, the Cayman Islands, and 26 foreign countries.

Popeyes Louisiana Kitchen, a division of AFC Enterprises, Inc., today announced the Popeyes restaurant system achieved a supply chain cost savings of approximately $16 million in 2010. The benefit to franchisees was estimated at one full percentage point improvement in restaurant operating profit margins before rent, compared with the prior year.

“At Popeyes, we are very data centric – collecting and analyzing key information, and identifying those cost-saving solutions that directly and indirectly impact each restaurant’s bottom line,” said Cheryl Bachelder, president and chief executive officer for Popeyes Louisiana Kitchen. “In the quick-serve restaurant business money is made in slivers of percentages and it is critically important to manage those costs.”

A cross-functional team, comprised of Popeyes’ supply chain management and finance teams, as well as Supply Management Services (SMS), a supply chain cooperative serving the Popeyes restaurant system, evaluated aspects of company and restaurant-level profitability, from packaging prices and commodity costs to vendor relationships. The team successfully renegotiated key vendor contracts and implemented restaurant efficiency initiatives to achieve the savings.

“Our team works with and seeks valuable input from all aspects and functions of our organization to identify cost-savings opportunities. Working in this cross-functional team allowed us to consider additional costs and raise questions that had never been raised,” said Alice LeBlanc, chief global supply chain officer for Popeyes. “We delivered significant savings and while we may not be able to match it every year, we will continue to pursue savings with the same fervor moving forward, while maintaining the high quality food advantage our guests enjoy.”

The supply chain cost savings initiative is an integral part of the Company’s strategy for greater franchisee and company success. Popeyes’ framework for success is centered on four strategic brand pillars: building a distinctive, relevant brand; running great restaurants; strengthening unit economics; and ramping up new unit growth.

AFC Enterprises, the franchisor and operator of Popeyes announced today that Lynne Zappone has been named Chief Talent Officer of its Popeyes brand. Ms. Zappone, will be responsible for sourcing, integrating and retaining high quality talent to deliver Popeyes’ business plan.

“With her 20 years of global human resources experience, Lynne is ideally suited to lead the talent initiatives for Popeyes as we continue our growth around the globe,” said Cheryl Bachelder, AFC Enterprises Chief Executive Officer. “She is a highly regarded leader with a wealth of strategic experience, and an impressive record of accomplishment. Lynne is a valuable addition to our Leadership team and we welcome her to Popeyes.”

Ms. Zappone joins Popeyes with extensive experience in talent development and learning, human resources, and business management. From 1998 to 2011, Ms. Zappone served in a number of senior human resources positions with InterContinental Hotels Group (IHG), most recently as Senior Vice President, Global Learning and Americas Human Resources. Prior to joining IHG, Ms. Zappone enjoyed 10 years of strategy and leadership experience including consulting with Phillips Associates and organizational development and training roles with Fidelity Federal Bank and Sheraton Universal Hotel.

In her new role, Ms. Zappone will be responsible for performance optimization, organizational development, as well as the company’s diversity and cultural change initiatives. Ms. Zappone will also ensure the development and implementation of all human resource policies and programs, including compensation, benefits, and risk management.

Ms. Zappone holds a Bachelor’s of Arts in Education from Flagler College and Master’s of Arts in Organizational Leadership from the University of Phoenix.

AFC Enterprises, Inc. is the franchisor and operator of Popeyes restaurants, the world’s second-largest quick-service chicken concept based on number of units. As of December 26, 2010, Popeyes had 1,977 operating restaurants in the United States, Guam, Puerto Rico, the Cayman Islands and 26 foreign countries. AFC’s primary objective is to deliver sales and profits by offering excellent investment opportunities in its Popeyes brand and providing exceptional franchisee support systems and services to its owners.

Popeyes Louisiana Kitchen has begun a plan for aggressive growth in the Orlando and Tampa, Florida area. With sales in the chicken fast food market at a 10 year high, Popeyes is hoping to take advantage of the boost to power location growth. Over 100 restaurants were opened by the franchise across the country in 2010.

Pizza Hut’s popular Stuffed Crust Pizza, featuring a layer of mozzarella hidden in the crust, has received a timely upgrade. The new Ultimate Stuffed Crust Pizza adds a customer’s favorite toppings, including pepperoni or olives, in with the layer of cheese. Customers can also win free pizza by telling Pizza Hut their favorite choice in toppings through the company’s Twitter page.

Member’s only shopping group ShopRunner and Domino’s Pizza have teamed up to give away $1,100 dollars worth of free pizza in the form of gift cards. The contest was designed to celebrate the partnership recently formed between the two companies. One winner will be selected per week through April 25^th. You can enter by joining ShopRunner for a free 30-day trial of their service.

Chipotle’s gold foil burrito wraps were instituted to draw attention to their quality ingredients, but now customers can use them to win a new contest. Customers must wrap what they love in a gold wrapper and upload the photograph to the Chipotle website. The most popular and creative submission will win a grand prize of $10,000.

The Triple Chocolate Miracle Cake at Lone Star Steakhouse may be an indulgence, but now you can give back by buying one. Lone Star plans to donate part of each sale of this dessert to the Children’s Miracle Network. They hope to raise over $100,000 for the foundation’s hospitals that treat children with fatal and life threatening diseases.

Dunkin’ Donuts may be famous for their sweet donuts and pastries, but now they want you to visit for savory lunch meals as well. To meet this goal they are introducing a new Chicken Salad Sandwich served on a fresh croissant, toasted bagel or English muffin in the New York state area. Locations around the country recently added savory snack options to their all-day menus as well.

Red Mango, a frozen yogurt chain focused on probiotics and fruit smoothies, has partnered with the athletic department at Baylor University. Fresh yogurt products will be available to all athletes at the university and faculty and students through an on-site chain location. The retail chain has never had a university campus presence prior to this opening.

Ruby Tuesday has reported their third quarter earnings for the 2011 fiscal year, and things are looking slightly down for the company. Small losses occurred in same-store sales and overall net income. However, the company did acquire 7 new franchise partnerships and opened their first seafood chain restaurant, Marlin & Ray’s and first Truffles conversion as well.

Long Island Restaurant Week has begun, and diners can find a variety of price fixe entree options at famous Long Island eateries. For $24.95 guests will receive their choice of an appetizer, entree and dessert from three menu options for each course. Long Island’s restaurant week will end on April 10^th.

Scooter’s Coffeehouse has opened in Omaha, Nebraska, bringing their seven state total to over 90 locations. 35 other locations are found within the general Mid-Western region, including 3 other recent Nebraska openings. This coffee shop chain focuses on drive-through service for busy professionals and a varied drink menu.

Popeyes Louisiana Kitchen, a division of AFC Enterprises, Inc., announced today the launch of an aggressive growth plan to increase its presence in Tampa and Orlando, Fla. With the company’s dollar share of chicken QSR sales at a 10-year high domestically, Popeyes is poised to rapidly expand domestically and is seeking bold, passionate multi-unit operators to invest in new restaurants in Tampa and Orlando.

As part of the company’s 2011 growth plans, the Popeyes development team will be in Tampa to host a franchise seminar on April 12 and Orlando on April 14 to share the benefits of owning a Popeyes’ restaurant. To register for the event please visit www.ownapopeyes.com/tampa or www.ownapopeyes.com/orlando or contact 512.436.1770 with any questions.

“For nearly 40 years, Popeyes has passionately delivered its authentic Louisiana food to guests around the world, and after a remarkable 2010 with strong positive results, we are excited about the opportunity to aggressively grow the brand in Tampa and Orlando,” said Greg S. Vojnovic, CFE, vice president of development, Popeyes Louisiana Kitchen. “We have built a strong foundation for our domestic business and encourage interested entrepreneurs to attend our franchising seminar to learn how to open a Popeyes restaurant in their community.”

In 2010, the Popeyes global system opened 106 new restaurants and total domestic same-store sales increased 2.5 percent compared to 0.6 percent in 2009. In addition, the company announced that Popeyes’ Spicy and Mild Bonafide bone-in-fried chicken beat KFC’s Original Recipe bone-in-fried chicken in a national taste test. This marketing initiative combined with other national media advertising delivered strong guest counts and positive same-store sales for the second consecutive year.

At Popeyes, management is on a mission to increase franchisee results in every facet of the business. Profitability and service excellence are achieved with a focus on four strategic pillars that guide every decision – build the brand, run great restaurants, strengthen unit economics and ramp up unit growth.

As part of its Strategic Roadmap, Popeyes is determined to give guests a service experience as distinctive and as superior as its food. In 2008, the company implemented its Guest Experience Monitor (GEM) in all U.S. restaurants, which measures a combination of overall guest satisfaction, intent to return and likelihood to recommend. Tracking this data enables management to make smart, fact-based decisions about the brands growth.

For those interested in franchising, Popeyes is seeking candidates that meet a specific franchisee profile to help build its brand and business. Franchisees should possess a minimum net worth of $500,000 and liquid assets of at least $250,000. Candidates should also have five years proven expertise in owning and operating restaurants.

“Popeyes is a brand with soul, offering a franchise opportunity unlike any other,” said Vojnovic. “It’s not for everyone and requires a leader who believes in accountability and takes as much pride in serving the front of the house as managing the back.”

In an effort to keep the brand competitive, Popeyes offers flexible real estate development opportunities, including free-standing and in-line opportunities. Popeyes also develops in airports, shopping malls, universities as well as other retail environments.

As a true extension of its New Orleans’ roots, Popeyes serves seafood including shrimp, crawfish and catfish. The company has received wide recognition throughout the franchise industry, including being ranked in Nation’s Restaurant News “Top 100” franchise chains, QSR’s “Top 50” franchises and Entrepreneur Magazine’s “Top 500,” among others.

Popeyes is again offering their famous Pay Day Deal due to consumer demand. On March 23 Popeyes’ restaurants will sell eight pieces of fried chicken for $4.99. The deal will not be available at any other time, and the meal is only available at participating locations. Customers can add four biscuits and a large side for an additional $5.

To celebrate the start of the new season, homestyle restaurant chain Cracker Barrel is revealing a new, revamped Spring menu. New offerings include Sweet Southern Peach Iced Tea, shrimp and grits, multi-grain pancakes and salads featuring fresh berries. Over 10 new dishes were added with the Spring menu, and they will only be available until May 22^nd.

The company that owns and operates Bruegger’s bakeries has been acquired by Le Duff America. The chain restaurants feature sandwiches, salads and soups as well as desserts and coffee. Currently the second largest bakery chain in North America, Bruegger’s brands include Timothy’s Coffees of the World, Michael’s Baguettes and the Canadian mmmuffins. Le Duff America is a branch of the French Company Le Duff SA.

Schedulefly has released a new book that compiles the experience and knowledge of 21 North American restaurant owners. The book, titled “Restaurant Owners Uncorked”, contains interviews and success stories from restaurants in the U.S and Canada. The book covers many of the topics new restaurant owners are confused by, such as the importance of bookkeeping, the problems with chain restaurants and many other issues.

Burger King‘s seven year run with ad agency CP&B has ended after a string of controversial ads and slow growth. With six consecutive quarters of dropping sales, the company must now make some critical moves to maintain their position as the second largest burger chain against Wendy’s. Ads with religious and sexual content caused trouble with franchisees and consumers.

The popular ButterBurger at Culver’s restaurant, named for its buttered bun, now comes in the new Three Cheese ButterBurger option as well. Cheddar, Swiss and American cheeses made fresh in Wisconsin all top the beef patty. Other ButterBurger options include the Cheddar ButterBurger and the Cheddar ButterBurger with Bacon.

The family of Katelyn Carlson, a seventh-grader who died last year after consuming peanuts at a school party, has decided to sue the restaurant that provided the meal. The school system claims that the teachers advised the Chinese restaurant to use no peanut products in the food due to the student’s severe peanut allergy. The family is pressing charges for wrongful death.

Red Robin chain restaurants are holding their annual Tip-A-Cop fund raising event on March 26. Local police officers will serve restaurant guests to raise money for the Special Olympics. Nearly 350 restaurant locations will participate in the event. The company will also donate .50 cents from any bill that contains both a Gourmet Burger and a Coca Cola product throughout the week.

Fried chicken chain restaurant Chester’s has opened another international location in the new airport in the Dominican Republic. Adding a restaurant in the Las Americas JFPG International Airport helps bring the Chester’s brand to customers from around the world. IMC Caribe helped develop the new food court based location.

Consumers asked and Popeyes Louisiana Kitchen delivered as the brand brings back its popular “Pay Day” event. Offering eight pieces of its famous BONAFIDE Chicken for only $4.99, Popeyes invites guests to cash-in on deals worth sinking their teeth into! The one day only event takes place on Wednesday, March 23, at participating Popeyes locations.

Guests will get more bang for their buck at this year’s Pay Day when they “Make it a Meal” by upsizing the offer to add one large side and four biscuits for an additional $5.00. It is a Pay Day bonus that provides a filling feast for the whole family, office or team!

“Guests have shown great enthusiasm each year for our Popeyes Pay Day event, so we had to bring it back!” said Dick Lynch, chief marketing officer. “With the rise in gas prices, and a still weakened economy, we returned to a $4.99 price point to save guests money for the bank and the gas tank. In year’s past, the best part of Popeyes Pay Day is that chicken was literally flying out of the door, and we expect to see similar results this year.”

Over the last three years, Popeyes lovers from coast to coast have cashed-in, and this year is no exception. More than 1,500 restaurants in the United States will participate in this one-day guest appreciation event. So, don’t hesitate! Go to www.Popeyes.com to search for a restaurant near you and head to your local Popeyes early to beat the flocks of Popeyes chicken lovers taking advantage of this incredible one-day only offer.

AFC Enterprises, Inc., the franchisor and operator of Popeyes restaurants, today reported results for fiscal 2010 which ended December 26, 2010. The Company also provided guidance for fiscal 2011 as well as an update on its Strategic Plan.

Fiscal 2010 Highlights Compared to Fiscal 2009:

• Reported net income was $22.9 million, or $0.90 per diluted share, compared to $0.74 per diluted share last year. Adjusted earnings per diluted share were $0.86, consistent with previous guidance, compared to $0.74 last year, an increase of 16 percent. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
• Total system-wide sales increased 5.1 percent, compared to a 1.8 percent increase in 2009.
• Global same-store sales increased 2.6 percent, compared to a 0.7 percent increase last year. Total domestic same-store sales increased 2.5 percent compared to a 0.6 percent increase in 2009. According to independent data, Popeyes domestic same-store sales outpaced both the QSR and chicken QSR categories for the second consecutive year. International same-store sales were positive for the fourth year in a row, with an increase of 3.1 percent in 2010 compared to a 1.9 percent increase in 2009.
• The Popeyes system opened 106 restaurants and permanently closed 67 restaurants, resulting in 39 net openings, compared to 14 net openings in 2009.
• Company-operated restaurant operating profit margin was 19.2 percent of sales, an increase of 350 basis points over last year. This improvement was primarily a result of supply chain savings, declines in commodity costs, higher same-store sales, and the re-franchising of lower performing company-operated restaurants in 2009. Company-operated restaurant operating profit margin is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
• Operating EBITDA of $45.3 million was 30.9 percent of total revenues, compared to Operating EBITDA last year of $41.0 million, at 27.7 percent of total revenues. The Company’s Operating EBITDA as a percentage of total revenues remains among the highest in the restaurant industry. Operating EBITDA is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
• As previously announced, on December 23, 2010, the Company completed a new five-year $100 million re-financing, comprised of a $40 million term loan and a $60 million revolver. At closing, $22 million was drawn on the revolver. The Company expects to benefit from significantly lower interest expense over the term of the new facility.
• The Company generated $25.3 million of free cash flow, which included $0.2 million of other expense, compared to $22.1 million last year, which included $2.1 million of other income. Free cash flow is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

AFC Enterprises Chief Executive Officer Cheryl Bachelder stated, “2010 was a remarkable year for us, as we delivered another year of strong positive results against the initiatives of our Strategic Plan. With improved operating performance, we grew our adjusted earnings per diluted share by 16 percent. I am proud of the entire Popeyes team for these accomplishments.”

“Over the past three years, we have built a strong foundation for our domestic business. In 2011 our initiatives will remain focused on the same four successful strategies: build the brand, run great restaurants, strengthen unit economics, and ramp up unit growth. We will now build on this success by using the same Strategic Roadmap for our international business including making investments that we believe will help drive guest traffic, improve guest satisfaction, and strengthen our unit economics. This is the essential foundation for accelerating unit growth around the globe.”

Strategic Plan Update

The Company’s Strategic Plan is built on the foundation of the Four Pillars below.

1. Build the Popeyes Brand

• During 2010, Popeyes ran national media advertising to promote its famous Bonafide chicken and seafood offerings at compelling price points and to introduce two new innovative products, Popeyes Wicked Chicken and Cane Sweeeet Iced Tea. In addition, the Company announced that Popeyes’ Spicy and Mild Bonafide bone-in fried chicken beat KFC’s Original Recipe bone-in fried chicken in a national taste test. These marketing initiatives delivered strong guest counts and positive same-store sales for the second consecutive year.
• In 2011, Popeyes expects to continue promotion of its core chicken and seafood offerings and periodically introduce new, innovative menu offerings, while continuing to use national media advertising with Annie as its spokesperson.
• In 2010, Popeyes announced multi-year agreements with two new marketing partners, The Coca-Cola Company and Dr Pepper Snapple Group. As a result of the new agreements, in 2011 Popeyes will be implementing a unified strategy for fountain beverages that is designed to be more exciting for its guests and more profitable for its restaurants.
• Similar to its U.S. initiatives, in 2011 the Company is working with its international franchisees to implement distinctive new product offerings and core menu value promotions to drive traffic gains.

2. Run Great Restaurants

• Popeyes restaurants continue to improve their Guest Experience Monitor (GEM) scores. Since the implementation of Popeyes new Speed Of Service (SOS) program 18 months ago, GEM scores for “% Delighted” have increased more than 8 percentage points and “Speed of Service” scores have increased more than 12 percentage points.
• Additionally, by year end 2010 Popeyes had approximately 1,000 restaurants reporting drive-thru times on a weekly basis, with approximately 60 percent of those restaurants reporting drive-thru times at the Company’s SOS target of 180 seconds or less.
• In 2011, Popeyes is implementing the same core operating systems to measure guest service and restaurant operations across the Company’s international markets.

3. Strengthen Unit Economics

• Popeyes continues to partner with its franchisees and purchasing cooperative to increase restaurant profitability while maintaining a high quality food advantage. In 2010, Popeyes restaurants achieved approximately $16 million in food cost savings related to the successful renegotiation of vendor contracts, introduction of alternate suppliers, product specification enhancements, logistics/distribution optimization, and declines in commodity costs. These initiatives helped deliver one full percentage point of restaurant operating profit margin improvement compared to 2009.
• Like many in the restaurant industry, in 2011 management expects the Popeyes system to experience a 2-3 percent increase in commodity costs. Management plans to offset these increases with additional supply chain cost savings, selective menu pricing, and better in-restaurant controls.
• In 2011, the Company will also be applying the same focus on profit margin to its international markets, where food costs are typically higher. Initiatives are already underway to reduce cost by region to make Popeyes’ restaurant cost structure more competitive around the globe.

4. Ramp up New Unit Growth

• The Company’s global development pipeline for new unit openings continues to strengthen, and in 2010 the Popeyes system opened 106 new restaurants and closed 67 underperforming units, yielding 39 net restaurants, as compared to 95 openings and 81 closings in 2009.
• Since the implementation of the Company’s domestic site selection modeling tool in 2008, Popeyes new domestic restaurants are opening at significantly stronger sales volumes than the system average. Additionally, those restaurants which have been open more than two years are sustaining those sales volumes in their second year of operation. Management believes this demonstrates the quality of the Popeyes unit economic model and upgraded development processes, and these improvements will allow the Company to begin accelerating new unit growth in the U.S.
• As the Company builds similar development capabilities internationally, in 2011 management expects to maintain its international new unit openings at approximately 60 restaurants, comparable to the opening pace it delivered in 2010.

2010 Financial Performance Review

Total system-wide sales increased by 5.1 percent. System-wide sales were comprised of $1.81 billion in franchise restaurant sales and $52.7 million in company-operated restaurant sales.

Global same-store sales increased 2.6 percent, which exceeded previous guidance, and compared to a 0.7 percent increase in 2009. Total domestic same-store sales increased 2.5 percent, compared to a 0.6 percent increase last year. This positive sales growth reflects Popeyes continued promotional focus on its famous Bonafide bone-in chicken and seafood offerings at compelling price points, the successful introduction of Popeyes Wicked Chicken, and the continued use of national media advertising to build brand awareness and drive traffic.

International same-store sales increased 3.1 percent, compared to a 1.9 percent increase last year, the fourth consecutive year of positive same-store sales. This was due primarily to strong sales in Canada and Turkey, partially offset by negative performance in Korea, Latin America and the Middle East.

Total revenues were $146.4 million, compared to $148.0 million last year. This decrease was primarily due to the Company’s successful re-franchising of 16 company-operated restaurants during 2009, partially offset by positive same-store sales.

Company-operated restaurant operating profit margin was 19.2 percent of sales, an increase of 350 basis points over last year. This improvement was primarily a result of supply chain savings, declines in commodity costs, higher same-store sales, and the re-franchising of lower performing company-operated restaurants in 2009. Company-operated restaurant operating profit margin is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

General and administrative expenses were $56.4 million, or 3.0 percent of system-wide sales, consistent with the Company’s previous guidance, and compared to $56.0 million, or 3.2 percent of system-wide sales last year. In 2010, general and administrative expenses included the Company’s continued strategic investments in new product innovation, speed of service training programs, additional new development personnel for real estate, franchise sales recruiting, construction, and other franchise support personnel. The Company’s general and administrative expenses as a percentage of system-wide sales remain among the lowest in the restaurant industry.

Other expenses were $0.2 million compared to other income of $2.1 million last year. In 2009, other income primarily included the net gain associated with the sale of 10 real estate properties.

Operating EBITDA of $45.3 million was 30.9 percent of total revenues, compared to Operating EBITDA last year of $41.0 million, at 27.7 percent of total revenues. This $4.3 million increase was primarily due to positive growth from same-store sales, increased net units, and improved company-operated restaurant operating profit margins. Operating EBITDA is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

Operating profit was $41.2 million, or 28.1 percent of total revenues, compared to operating profit of $38.7 million last year, or 26.1 percent of total revenues.

Interest expense, net was $8.0 million, a $0.4 million decrease from 2009. This decrease was primarily due to $1.9 million of fees expensed in 2009 related to the Company’s credit facility amendment and lower average debt balances as compared to 2009, partially offset by $0.6 million of fees expensed in 2010 in connection with the Company’s new credit facility and higher average interest rates.

Income tax expense was $10.3 million, yielding an effective tax rate of 31.0 percent, compared to an effective tax rate of 38.0 percent in the prior year. In 2010, the Company recorded a tax benefit of $1.4 million, or $0.05 per diluted share, related to the completion of a federal income tax audit for years 2004 and 2005. Excluding the tax benefit, the 2010 effective tax rate would have been 35.2 percent, which differs from statutory rates due primarily to adjustments in estimated tax reserves.

Reported net income was $22.9 million, or $0.90 per diluted share, compared to $0.74 per diluted share last year. Adjusted earnings per diluted share were $0.86 in 2010, which was consistent with the Company’s guidance of $0.85-$0.86 per diluted share, compared to $0.74 last year. This 16 percent improvement was primarily due to the increase in Operating EBITDA as discussed above and a decrease in income tax expense associated with the lower effective tax rate. Adjusted earnings per diluted share and Operating EBITDA are supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

The Company generated $25.3 million of free cash flow, which included $0.2 million of other expenses, compared to $22.1 million in 2009, which included $2.1 million of other income. Free cash flow is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.” At fiscal year end 2010, the Company had $15.9 million in cash.

In 2010, the Company used $16.6 million of cash to reduce its outstanding debt to $66.0 million. At fiscal year end, the Company’s Total Leverage Ratio (TLR) was 1.40 to 1, compared to a TLR of 1.95 to 1 at the end of last year. See heading entitled “Calculation of Total Leverage Ratio.”

The Popeyes system opened 106 restaurants in 2010, which included 45 domestic and 61 international restaurants, compared to 95 openings in 2009. The number of new restaurant openings was slightly lower than previous guidance of 120-130, due primarily to construction delays as a result of weather and permitting delays in the fourth quarter. As of January 31, 2011, the company had opened 8 of those restaurants originally planned for December 2010. The Popeyes system permanently closed 67 restaurants in fiscal 2010, resulting in 39 net restaurant openings, compared to 14 net openings last year. These closures included 35 domestic and 32 international restaurants.

On a system-wide basis, Popeyes had 1,977 restaurants operating at the end of fiscal 2010, compared to 1,943 restaurants at the end of last year. Total unit count was comprised of 1,580 domestic restaurants and 397 international restaurants in 26 foreign countries and three territories. Of this total, 1,939 were franchised restaurants and 38 were company-operated restaurants.

New Credit Facility

As previously announced, on December 23, 2010, the Company completed a new five-year $100 million credit facility, comprised of a $40 million term loan and a $60 million revolver. At closing, $22 million was drawn on the revolver. Proceeds from the refinancing together with available cash were used to retire its previous credit facility.

The rate of interest under the new facility is 2.8 percent and is determined using LIBOR plus a spread of 250 basis points. The spread above LIBOR can adjust from 225 to 325 basis points depending on the Company’s total leverage. In the fourth quarter of 2010, the Company recognized approximately $0.6 million of interest charges and deferred approximately $1 million of fees associated with the refinancing. The $1 million of deferred fees will be amortized over the life of the new facility.

On February 22, 2011, the Company entered into new interest rate swap agreements limiting the interest rate exposure on $30 million of its floating rate debt to a fixed rate of 4.8 percent. As a result, the weighted average interest rate is currently 3.8 percent, compared to a weighted average interest rate of 7.2 percent in 2010. The term of the swap agreements expires March 31, 2015, which is in the same year as the maturity of the new credit facility.

Based on the more attractive interest rate terms associated with this refinancing, the Company expects its annual interest expense, net will be in the range of $3.5-$4.0 million in 2011, which is approximately a $4.0 million savings compared to 2010.

The Company’s required quarterly principal payments will be $1.25 million for each of the first two years, $1.5 million for the third and fourth years and $4.5 million in the fifth year.

Fiscal 2011 Guidance

Continuing its two-year positive momentum, the Company expects Popeyes global same-store sales growth to be in the range of positive 1.0 to 3.0 percent in 2011.

Popeyes expects global new openings to be in the range of 120-140 restaurants in 2011, a growth rate of 6-7 percent, compared to 106 openings in 2010. As management evaluates its International Strategic Plan, the Company intends to maintain its international new unit openings at approximately 60 restaurants in 2011, similar to the opening pace it delivered in 2010.

The Company projects system-wide unit closings will be in the range of 60-80 restaurants, or 3-4 percent of its total restaurants, which is consistent with established restaurant brands. As such, in 2011 the Company expects 40-80 net restaurant openings, or 2-4 percent net unit growth. Management expects net openings to continue to accelerate in 2012 and beyond, as the Company continues to implement development initiatives to strengthen its new opening pipeline.

The Company expects general and administrative expenses will be in the range of $60-$62 million, at a rate of 3.1-3.2 percent of system-wide sales, among the lowest in the restaurant industry. General and administrative expenses include $2-$3 million for additional international strategic investments, $1-$2 million for fully annualized 2010 expenses primarily for new domestic and international restaurant development personnel, and approximately $1 million for a planned corporate office relocation.

The Company’s international strategic investments include a detailed evaluation of the International Strategic Plan, with due diligence on countries of focus, and general and administrative expenses necessary to accomplish the four pillar strategies. Management believes these investments will create a foundation for a healthy international business model, which is essential for accelerating unit growth around the globe.

The Company’s new corporate office, to be located in close proximity to its existing office, will provide approximately 40 percent more capacity, and as such will accommodate the Company’s long-term growth plans over the next 10 years. Management has negotiated a lease rate that is significantly lower on a cost per square footage than the lease for the existing facility. Additionally the Company expects that the new facility will better integrate departments throughout the organization, thereby improving efficiency and effectiveness. Moving expenses are projected to be approximately $1 million. Capital investment is approximately $3 million, net of landlord allowances, and will include a new research and development center.

As mentioned above, the Company expects its annual interest expense, net will be in the range of $3.5-$4.0 million in 2011, compared to $8.0 million in 2010.

In 2011, the Company expects its effective tax rate to return to a more normalized rate after the favorable audit benefits the Company realized in 2010. As such, the Company expects its 2011 effective tax rate will be in the range of 37.0-38.0 percent, compared to 31.0 percent in 2010.

While the Company continues to invest in its core business for the long-term growth of the brand, management also plans to use cash to repurchase shares of common stock. During 2011, the Company expects to repurchase $20-$25 million shares of common stock under the Company’s current Share Repurchase Program, which has capacity for repurchases of up to approximately $38.9 million of its common stock. Pursuant to the terms of the new credit facility, the Company may repurchase and retire its common shares any time the Total Leverage Ratio (TLR) is less than 2.0 to 1. At fiscal year end, the Company’s TLR was 1.40 to 1, and management expects during 2011 that its TLR will remain below 2.0 to 1. See heading entitled “Calculation of Total Leverage Ratio.”

The Company expects 2011 reported earnings per diluted share will be in the range of $0.86-$0.90, compared to $0.90 in 2010. The Company expects adjusted earnings per diluted share, will be in the range of $0.91-$0.95, compared to $0.86 in 2010, and which represents a 3-year compound average annual growth rate of 12-13 percent. Adjusted diluted earnings per share excludes approximately $1.5 million for the corporate office relocation and approximately $0.5 million for other expenses, net. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

During 2011, the Company expects its capital expenditures will be in the range of $7-$9 million. These investments include: $4-$6 million for the core business, which includes company-operated restaurant reimages, a new company-operated restaurant, information technology, point of service equipment and maintenance capital expenditures; as well as approximately $3 million for the corporate office move, net of landlord allowances.

Long-Term Guidance

Consistent with previous guidance, over the course of the next five years, the Company believes the execution of its Strategic Plan will deliver on an average annualized basis the following results: same-store sales growth of 1 to 3 percent; net unit growth of 4 to 6 percent; and earnings per diluted share growth of 13 to 15 percent.

Conference Call

The Company will host a conference call and internet webcast with the investment community at 9:00 A.M. Eastern Time on March 10, 2011, to review the results of the fourth quarter and full year of fiscal 2010. To access the Company’s webcast, go to www.afce.com, select “Investor Information” and then select “AFC Enterprises Fiscal 2010 Earnings Conference Call.” A replay of the conference call will be available for 90 days at the Company’s website or through a dial-in number for a limited time following the call.

Corporate Profile

AFC Enterprises, Inc. is the franchisor and operator of Popeyes restaurants, the world’s second-largest quick-service chicken concept based on number of units. As of December 26, 2010, Popeyes had 1,977 operating restaurants in the United States, Guam, Puerto Rico, the Cayman Islands and 26 foreign countries. AFC’s primary objective is to deliver sales and profits by offering excellent investment opportunities in its Popeyes brand and providing exceptional franchisee support systems and services to its owners. AFC Enterprises can be found at www.afce.com.

AFC Enterprises, Inc. (NASDAQ: AFCE), the franchisor and operator of Popeyes restaurants, today reported selected operating results for its fiscal 2010 fourth quarter and full year which ended December 26, 2010, and increased fiscal 2010 earnings guidance.

Global same-store sales increased 6.0 percent in the fourth quarter compared to a 1.0 percent decrease last year. For the full year 2010, global same-store sales increased 2.6 percent compared to a 0.7 percent increase in 2009, exceeding the Company’s previous guidance of positive 2.0 percent to 2.5 percent.

During the fourth quarter, the Popeyes system opened 22 domestic and 26 international restaurants, bringing full year 2010 openings to 106 restaurants, compared to 95 restaurants last year. Openings were lower than previous guidance of 120-130 restaurants due primarily to year-end construction delays resulting from poor weather and permitting delays. Management expects to have approximately 8 of these restaurants opened by the end of January. The Popeyes system permanently closed 67 restaurants in fiscal 2010, resulting in net unit growth of 39 restaurants, compared to 14 net restaurants in 2009.

AFC Enterprises Chief Executive Officer Cheryl Bachelder stated, “We continue to be pleased with our strong same-store sales momentum, which reflects our superior food and effective marketing campaigns in the U.S. and around the globe. Today our business model is stronger and more profitable to our franchise owners. While we missed our aggressive new unit opening goal by 14 units, we expect half of those units will be open in this month. We remain in a very good position to continue the acceleration of unit growth in 2011 and beyond.”

Based on the fourth quarter sales performance, the Company expects fiscal 2010 fourth quarter reported earnings will be $0.16-$0.17 per diluted share and full year reported earnings will be $0.88-$0.89 per diluted share. Adjusted earnings per diluted share for the fourth quarter is now expected to be $0.18-$0.19, bringing full year adjusted earnings per diluted share to $0.85-$0.86, compared to adjusted earnings per diluted share of $0.74 in fiscal 2009. This is an increase from the Company’s previous adjusted earnings per diluted share guidance of $0.81-$0.83. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

Within this updated guidance, the Company continues to expect general and administrative expenses for the fourth quarter of 2010 will be in the range of $14.0-$14.5 million and full year 2010 general and administrative expenses will be approximately 3.0 percent of system-wide sales, among the lowest in the restaurant industry.

Management expects to provide fiscal 2011 guidance concurrent with the filing of the Company’s 2010 Annual Report on Form 10-K.

New Credit Facility

As previously announced, on December 23, 2010, the Company completed a new five-year $100 million credit facility, comprised of a $40 million term loan and a $60 million revolver. Proceeds from the refinancing together with available cash were used to retire approximately $63 million of the outstanding principal debt balance of its previous credit facility. At closing, $22 million was drawn on the revolver.

The rate of interest under the new facility is currently 2.8 percent and is determined using the LIBO Rate plus a spread of 250 basis points. The spread above the LIBO Rate can adjust from 225 to 325 basis points depending on the Company’s total leverage. In the fourth quarter of 2010, the Company will recognize approximately $0.6 million of interest charges and defer approximately $1 million of fees associated with the refinancing to be amortized over the life of the new facility.

The Company’s required quarterly principal payments will be $1.25 million for the first two years, $1.5 million for the third and fourth years and $4.5 million in the fifth year.

Corporate Profile

AFC Enterprises, Inc. is the franchisor and operator of Popeyes® restaurants, the world’s second-largest quick-service chicken concept based on number of units. As of December 26, 2010, Popeyes had 1,977 operating restaurants in the United States, Guam, Puerto Rico, the Cayman Islands and 26 foreign countries. AFC’s primary objective is to deliver sales and profits by offering excellent investment opportunities in its Popeyes brand and providing exceptional franchisee support systems and services to its owners. AFC Enterprises can be found at www.afce.com.

Management’s Use of Non-GAAP Financial Measures

Adjusted earnings per diluted share: Calculation and Definition

The Company calculates fiscal 2010 fourth quarter adjusted earnings per diluted share by excluding $0.6 million, or $0.02 per diluted share, of interest expense associated with refinancing the credit facility. The Company calculates fiscal 2010 full year adjusted earnings per diluted share by excluding $1.4 million, or $0.05 per diluted share, of tax benefit, and $0.6 million, or $0.02 per diluted share, of interest expense associated with refinancing the credit facility.

The Company defines adjusted earnings for fiscal 2009 as the Company’s reported net income after adjusting for certain non-operating items consisting of (i) other income, net (which for fiscal 2009 includes $3.3 million on the sale of assets partially offset by a $0.4 million loss on insurance recoveries related to asset damages, a $0.2 million impairment related to restaurant closures and $0.6 million related to impairments and disposals of fixed assets), (ii) the interest expense associated with the credit facility amendment, (iii) the tax effect of these adjustments. Adjusted earnings per diluted share provides the per share effect of adjusted net income on a diluted basis. The following table reconciles on a historical basis for fiscal 2009, the Company’s adjusted earnings per diluted share on a consolidated basis to the line on its consolidated statement of operations entitled net income, which the Company believes is the most directly comparable GAAP measure on its consolidated statement of operations to adjusted earnings per diluted share:

Management’s Use of Non-GAAP Financial Measures

The Company’s adjusted earnings per diluted share is a supplemental non-GAAP financial measure. The Company uses adjusted earnings per diluted share, in addition to net income, operating profit and cash flows from operating activities, to assess its performance and believes it is important for investors to be able to evaluate the Company using the same measure used by management. The Company believes this measure is important indicator of its operational strength and performance of its business because it provides a link between profitability and operating cash flow. Adjusted earnings per diluted share as calculated by the Company is not necessarily comparable to similarly titled measures reported by other companies. In addition, adjusted earnings per diluted share: (a) does not represent net income, or earnings per share as defined by GAAP; (b) should not be considered as an alternative to net income, earnings per share, operating profit, cash flows from operating activities or other financial information determined under GAAP.

Forward-Looking Statement: Certain statements in this release contain “forward-looking statements” within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management’s current expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties. Examples of such statements in this press release include discussions regarding the Company’s planned implementation of its strategic plan, discussions regarding the Company’s projections and expectations regarding anticipated 2010 performance, including projections regarding general and administrative expenses, and net earnings per diluted share, and similar statements of belief or expectation regarding future events. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: competition from other restaurant concepts and food retailers, continued disruptions in the financial markets, the loss of franchisees and other business partners, labor shortages or increased labor costs, increased costs of our principal food products, changes in consumer preferences and demographic trends, as well as concerns about health or food quality, instances of avian flu or other food-borne illnesses, general economic conditions, the loss of senior management and the inability to attract and retain additional qualified management personnel, limitations on our business under our credit facility, our ability to comply with the repayment requirements, covenants, tests and restrictions contained in our credit facility, failure of our franchisees, a decline in the number of franchised units, a decline in our ability to franchise new units, slowed expansion into new markets, unexpected and adverse fluctuations in quarterly results, increased government regulation, effects of volatile gasoline prices, supply and delivery shortages or interruptions, currency, economic and political factors that affect our international operations, inadequate protection of our intellectual property and liabilities for environmental contamination and the other risk factors detailed in our 2009 Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission. Therefore, you should not place undue reliance on any forward-looking statements.

Popeyes today announced multi-year agreements with two powerful marketing partners – The Coca-Cola Company and Dr Pepper Snapple Group – to implement a beverage strategy that is designed to be exciting for guests and more profitable for the restaurants.

“Popeyes has been working for quite some time on a common beverage strategy that will deliver results for our system,” explains Cheryl Bachelder, president and chief executive officer of Popeyes and AFC Enterprises, Inc. “The successful launch of Popeyes Cane Sweeeet Iced Tea this year demonstrated the power of a system-wide approach to beverage sales. Today we are putting in place a unified strategy for fountain beverages that we expect will provide great beverage brands to our guests and strong results to the operators of our 1,500+ restaurants nationwide.”

The announcement follows a thorough selection process conducted by a joint committee of franchise and corporate representatives. The committee reviewed proposals from all of the major beverage companies to identify the best options for the Popeyes system.

“The new beverage strategy and the selection of Coca-Cola and Dr Pepper are a win/win/win for everyone – a win for our brand, a win for the franchisees and most importantly, a win for our guests,” stated Popeyes franchisee Joe Haberkorn, chair of the joint beverage committee. “Working through this selection process as a team shows the power of what can be accomplished when our franchisor and franchisees work together with integrity and a shared commitment to the franchisees that will benefit from these partnerships.”

AFC Enterprises, Inc. (NASDAQ: AFCE), the franchisor and operator of Popeyes® restaurants, today reported results for third quarter and third quarter year-to-date 2010 which ended October 3, 2010. The Company also raised earnings guidance for fiscal 2010 and provided a business update on its Strategic Plan.

Third Quarter 2010 Highlights Compared to Third Quarter 2009:

• Reported net income was $5.9 million, or $0.23 per diluted share, compared to $0.13 per diluted share last year. Adjusted earnings per diluted share were $0.23, compared to $0.18 last year. Year-to-date, adjusted earnings per diluted share were $0.68 compared to $0.57 last year. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
• Total system-wide sales increased 8.2 percent compared to a 0.5 percent increase in 2009.
• Global same-store sales increased 5.2 percent compared to a 0.3 percent decrease last year. Total domestic same-store sales increased 5.3 percent compared to a 0.3 percent decrease last year. The Company’s same-store sales performance reflects its successful Bonafide® bone-in chicken value offerings in the third quarter and represented a promotional timing shift from last year when the Company ran similar offerings in the second quarter. International same-store sales increased 4.3 percent compared to a 1.0 percent decrease in 2009.
• The Popeyes system opened 24 restaurants and permanently closed 18 restaurants, resulting in 6 net openings.
• Company-operated restaurants operating profit margin was 17.1 percent of sales, an increase of 210 basis points over last year. This improvement was primarily due to higher same-store sales. Company-operated restaurants operating profit margin is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
• Year-to-date EBITDA of $36.0 million was 32.1 percent of total revenues, which included $0.1 million of other income, compared to EBITDA last year of $33.8 million, at 29.3 percent of total revenues, which included $2.6 million of other income. The Company’s EBITDA as a percentage of total revenues remains among the highest in the restaurant industry. EBITDA is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

• Year-to-date, the Company has generated $22.3 million of free cash flow, which included $0.1 million of other income, compared to $19.3 million in the same time period last year, which included $2.6 million of other income. Free cash flow is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

AFC Enterprises Chief Executive Officer Cheryl Bachelder stated, “We are delighted with our third quarter earnings performance which was driven by strong positive same-store sales. During the third quarter, we announced Popeyes beat KFC® in a U.S. taste test between Popeyes spicy and mild bone-in fried chicken and KFC®’s Original Recipe® bone-in fried chicken. We declared what we have always known, that Popeyes chicken simply tastes better. This national campaign was one of our most successful ever. I am proud of our management team and the Popeyes system for these results that continue to steadily outperform our competitors.”

Strategic Plan Update

The Company’s Strategic Plan is built on the Four Pillars below.

1. Build the Popeyes Brand

• At the end of August, the Company announced that Popeyes’ Spicy and Mild Bonafide® bone-in fried chicken had beaten KFC®’s Original Recipe® bone-in fried chicken in a national taste test. In connection with the announcement, the Company ran national media advertising which promoted Bonafide bone-in chicken with a 2-piece offer for $1.99 and a 9-piece box offer for $7.99.
• Popeyes is currently promoting its 2^nd Annual Crawfish Festival with national media advertising. For the festival, Popeyes is featuring its spicy, crispy Crawfish Tackle Box with Cajun fries and a buttermilk biscuit, and three menu items — Crawfish Po’Boy, Crawfish Traveler, and Crawfish Etouffee.

2. Run Great Restaurants

• Third quarter Guest Experience Monitor (GEM) “% Delighted” scores were at 73 percent, up 6 percentage points from a year ago. The Company’s speed of service focus continues to deliver improvements throughout the system as well. In the third quarter, Popeyes GEM “Speed of Service” scores were up 10 percentage points over the third quarter last year when the new speed program was rolled out. In addition, by the end of the third quarter, Popeyes had more than 900 restaurants reporting drive-thru times on a weekly basis, with approximately 40 percent of those restaurants reporting drive-thru times at or below 180 seconds.

3. Strengthen Unit Economics

• In the third quarter, Popeyes restaurants achieved a 2.5 percent decrease in food costs compared to last year, primarily the result of successful renegotiation of vendor contracts, restaurant efficiency initiatives, and declines in commodity costs. On a full year basis, the Company continues to expect these cost savings to deliver one full percentage point of restaurant operating profit margin improvement compared to 2009.

4. Ramp Up New Unit Growth

• The Company’s global development pipeline for new unit openings continues to strengthen. During the first three quarters of 2010, the Company opened 58 new restaurants. The Company continues to expect global openings of 120-130 new restaurants for the full year. Consistent with prior years, many of these openings are expected to occur in December. Additionally, the Company now expects closures to be approximately 70 restaurants, resulting in 50-60 net unit growth, compared to previous guidance of 80-90 restaurant closures and 30-50 net unit growth.

Third Quarter 2010 Financial Performance Compared to Third Quarter 2009

Total system-wide sales increased by 8.2 percent. System-wide sales were comprised of $426.6 million in franchise restaurant sales and $12.3 million in company-operated restaurant sales.

Global same-store sales increased 5.2 percent compared to a 0.3 percent decrease in 2009. Total domestic same-store sales increased 5.3 percent compared to a 0.3 percent decrease last year. The Company’s same-store sales performance reflects its successful Bonafide® bone-in chicken value offerings in the third quarter and represented a promotional timing shift from last year when the Company ran similar offerings in the second quarter. Year-to-date total domestic same-stores sales increased 1.5 percent compared to a 1.1 percent increase last year. According to independent data, Popeyes’ third quarter domestic same-store sales significantly outpaced both the QSR and chicken QSR categories by 3 and 10 percentage points, respectively. During the fourth quarter, Popeyes’ marketing efforts will remain focused on offering its guests the brand’s distinctive food at compelling value to drive traffic into the restaurants.

International same-store sales increased 4.3 percent compared to a 1.0 percent decrease in 2009. Strong sales in Canada, Turkey, Korea and Latin America were partially offset by weaker performance in the Middle East and overseas U.S. military bases. The Company’s international marketing focus will continue to increase the emphasis on value promotions to drive traffic.

Total revenues were $34.1 million, compared to $31.9 million last year. This $2.2 million increase was primarily due to positive same-store sales.

Company-operated restaurants operating profit margin was 17.1 percent of sales, an increase of 210 basis points over last year. This improvement was primarily due to higher same-store sales. Company-operated restaurants operating profit margin is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

Rent and other occupancy expenses associated with properties leased or sub-leased to franchisees or other third parties were $0.1 million in the third quarter, a $0.5 million decrease from last year, primarily due to a rent adjustment from a lease termination of an income property.

General and administrative expenses were $12.3 million, or 2.8 percent of system-wide sales, compared to $12.0 million, or 3.0 percent of system-wide sales, last year. General and administrative expenses as a percent of system-wide sales were lower primarily due to timing of expenses which will be incurred later in the year and due to stronger same-store sales performance. General and administrative expenses as a percentage of system-wide sales remains among the lowest in the restaurant industry.

Year-to-date EBITDA of $36.0 million was 32.1 percent of total revenues, which included $0.1 million of other income, compared to EBITDA last year of $33.8 million, at 29.3 percent of total revenues, which included $2.6 million of other income. The Company’s EBITDA as a percentage of total revenues remains among the highest in the restaurant industry. EBITDA is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

Operating profit was $10.6 million compared to operating profit of $8.9 million last year.

Interest expense, net was $1.4 million in the third quarter, a $2.1 million decrease from 2009. This decrease was primarily due to $1.9 million expensed in the third quarter last year in connection with the Company’s amendment of its credit facility and lower average debt balances as compared to 2009.

Income tax expense was $3.3 million, an effective tax rate of 35.9 percent, compared to an effective tax rate of 37.0 percent in the prior year. The lower effective rate is primarily due to adjustments to estimated tax reserves.

Reported net income was $5.9 million, or $0.23 per diluted share, compared to $3.4 million, or $0.13 per diluted share, last year. Adjusted earnings per diluted share were $0.23 compared to $0.18 in 2009. Year-to-date adjusted earnings per diluted share were $0.68 compared to $0.57 last year. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

During the third quarter, the Popeyes system opened 24 restaurants, which included 12 domestic and 12 international. The Popeyes system permanently closed 18 restaurants, including 12 domestic and 6 international. Year-to-date, Popeyes opened 58 restaurants and permanently closed 47 restaurants, resulting in 11 net openings, compared to 51 restaurants openings and 61 permanent closures last year. The lower closure rate reflects stronger restaurant performance as a result of higher sales, cost savings initiatives, and improved operations.

At the end of the third quarter, the Popeyes system had 1,949 restaurants, compared to 1,918 restaurants at the end of the third quarter last year. Total unit count was comprised of 1,570 domestic and 379 international restaurants in 26 foreign countries, Guam, Puerto Rico, and the Cayman Islands. Of this total, 1,912 were franchised restaurants and 37 were company-operated restaurants.

Uses of Cash Flow

Through the end of the third quarter, the Company generated $22.3 million of free cash flow, which included $0.1 million of other income, compared to $19.3 million in 2009, which included $2.6 million of other income. Free cash flow is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.” At the end of third quarter, the Company had $11.8 million in cash.

At the end of the third quarter, the Company’s total outstanding debt was $67.3 million and its Total Leverage Ratio (TLR) was 1.24 to 1, compared to $88.6 million of total outstanding debt and a TLR of 2.14 to 1 at the end of the third quarter last year. The Company is currently evaluating refinancing options with the intent to complete a refinancing of its credit facility near year end.

For fiscal 2011, the Company has prioritized its uses of cash to be 1) investments in its core business that deliver positive long-term returns to its stakeholders; and 2) opportunistic share repurchases and debt repayments. Core business investments may include the selective acquisition of Popeyes restaurants to improve operations and brand image, the opening of additional Popeyes restaurants in company-operated markets, and the re-imaging of company-operated restaurants. These investments would not materially change the Company’s percentage of franchised restaurants or the Company’s strategy of operating as a highly franchised best-in-class restaurant franchisor providing outstanding support to the Popeyes system.

Fiscal 2010 Guidance

Given its year-to-date same-store sales performance, the Company now projects that its global same-store sales for fiscal 2010 will be positive 2.0 percent to positive 2.5 percent, an increase from the Company’s previous guidance of flat to positive 2.0 percent.

Popeyes continues to expect its global new openings will be in the range of 120-130 restaurants. Consistent with prior years, many of these new openings are projected to occur in December. The Company now expects its closures will be approximately 70 restaurants, resulting in 50-60 net unit growth, compared to previous guidance of 30-50 net unit growth.

Additionally, the Company now expects general and administrative expenses for fiscal 2010 to be approximately 3.0 percent of system-wide sales, an improvement from its previous guidance of 3.1-3.2 percent of system-wide sales. During the fourth quarter, management now expects general and administrative expenses to be in the range of $14.0-$14.5 million, which is approximately $2 million, or $0.05 per diluted share, higher than the year-to-date run rate. This increase is due primarily to the timing of 2010 investment spending occurring later in the year than originally planned. This $2 million includes investments for new product testing, new domestic restaurant development personnel, and international personnel to support Popeyes global growth.

The Company now expects 2010 adjusted earnings per diluted share will be $0.81-$0.83, an increase from previous guidance of $0.75-$0.79 per diluted share, compared to adjusted earnings per diluted share of $0.74 last year. The Company calculates 2010 adjusted earnings per diluted share by excluding its year-to-date tax benefit of $1.4 million, or $0.05 per diluted share. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

Long-Term Guidance

Consistent with previous guidance, over the course of the next five years, the Company believes the execution of its Strategic Plan will deliver on an average annualized basis the following results: same-store sales growth of 1 to 3 percent; net new unit growth of 4 to 6 percent; and earnings per diluted share growth of 13 to 15 percent.

Conference Call

The Company will host a conference call and internet webcast with the investment community at 9:00 A.M. Eastern Time on November 11, 2010, to review the results of the third quarter 2010. To access the Company’s webcast, go to www.afce.com, select “Investor Information” and then select “AFC Enterprises Third Quarter 2010 Earnings Conference Call.” A replay of the conference call will be available for 90 days at the Company’s website or through a dial-in number for a limited time following the call.

Corporate Profile

AFC Enterprises, Inc. is the franchisor and operator of Popeyes® restaurants, the world’s second-largest quick-service chicken concept based on number of units. As of October 3, 2010, Popeyes had 1,949 operating restaurants in the United States, Guam, Puerto Rico, the Cayman Islands and 26 foreign countries. AFC’s primary objective is to deliver sales and profits by offering excellent investment opportunities in its Popeyes brand and providing exceptional franchisee support systems and services to its owners. AFC Enterprises can be found at www.afce.com.

*KFC and Original Recipe are registered trademarks of KFC Corporation.

Management’s Use of Non-GAAP Financial Measures

Company-Operated Restaurant Operating Profit Margins: Calculation and Definition

The Company defines company-operated restaurant operating profit margins as “sales by company-operated restaurants” minus “restaurant employee, occupancy and other expenses” minus “restaurant food, beverages and packaging.” The following table reconciles on a historical basis for third-quarter of 2010, third and third quarter of 2009, the Company’s company-operated restaurant operating profit margins to the line item on its consolidated statement of operations entitled “sales by company-operated restaurants,” which the Company believes is the most directly comparable GAAP measure on its consolidated statement of operations to company-operated restaurant operating profit margins:

EBITDA: Calculation and Definition

The Company defines EBITDA as “earnings before interest expense, taxes, depreciation and amortization.” The following table reconciles on a historical basis for third quarter year-to-date of 2010 and third quarter year-to-date of 2009, the Company’s earnings before interest expense, taxes, depreciation and amortization (“EBITDA”) on a consolidated basis to the line on its consolidated statement of operations entitled net income, which the Company believes is the most directly comparable GAAP measure on its consolidated statement of operations to EBITDA:

Free cash flow: Calculation and Definition

The Company defines Free Cash Flow as net income plus depreciation and amortization, plus stock compensation expense, minus maintenance capital expenses (which includes: for third quarter year-to-date of 2010 $0.5 million for restaurant re-image projects, and $0.6 million in other capital assets to maintain, replace and extend the lives of company-operated QSR equipment, facilities and other corporate assets; and for third quarter year-to-date of 2009 $0.5 million in other capital assets to maintain, replace and extend the lives of company-operated QSR equipment, facilities and other corporate assets). The following table reconciles on a historical basis for third quarter year-to-date of 2010 and third quarter year-to-date of 2009, the Company’s free cash flow on a consolidated basis to the line on its consolidated statement of operations entitled net income, which the Company believes is the most directly comparable GAAP measure on its consolidated statement of operations to free cash flow:

Adjusted earnings per diluted share: Calculation and Definition

The Company defines adjusted earnings for the periods presented as the Company’s reported net income after adjusting for certain non-operating items consisting of (i) other income, net (which for third quarter 2010 includes $0.1 million for impairments and disposals of fixed assets and $0.1 million for net gain on sales of assets; and for third quarter year-to-date 2010 includes $0.3 million for impairments and disposals of fixed assets and $0.4 million for net gain on sales of assets; and for third quarter 2009 includes $0.1 million for net gain on sales of assets; and for third quarter year-to-date 2009 includes $0.2 million for impairments and disposals of fixed assets, $3.1 million for net gain on sales of assets, and $0.3 million for other costs; and for fiscal 2009 includes $3.3 million on the sale of assets partially offset by a $0.4 million loss on insurance recoveries related to asset damages, a $0.2 million impairment related to restaurant closures and $0.6 million related to impairments and disposals of fixed assets), (ii) the interest expense associated with the credit facility amendment, (iii) the tax effect of these adjustments, and (iv) the tax audit benefit. Adjusted earnings per diluted share provides the per share effect of adjusted net income on a diluted basis. The following table reconciles on a historical basis for third quarter 2010, third quarter year-to-date of 2010, third quarter 2009, third quarter year-to-date of 2009, and fiscal 2009, the Company’s adjusted earnings per diluted share on a consolidated basis to the line on its consolidated statement of operations entitled net income, which the Company believes is the most directly comparable GAAP measure on its consolidated statement of operations to adjusted earnings per diluted share:

Management’s Use of Non-GAAP Financial Measures

Company-operated restaurant operating profit margins, EBITDA, free cash flow and adjusted earnings per diluted share are supplemental non-GAAP financial measures. The Company uses company-operated restaurant operating profit margins, EBITDA, free cash flow and adjusted earnings per diluted share, in addition to net income, operating profit and cash flows from operating activities, to assess its performance and believes it is important for investors to be able to evaluate the Company using the same measures used by management. The Company believes these measures are important indicators of its operational strength and performance of its business because they provide a link between profitability and operating cash flow. Company-operated restaurant operating profit margins, EBITDA, free cash flow and adjusted earnings per diluted share as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. In addition, Company-operated restaurant operating profit margins, EBITDA, free cash flow and adjusted earnings per diluted share: (a) do not represent net income, cash flows from operations or earnings per share as defined by GAAP; (b) are not necessarily indicative of cash available to fund cash flow needs; and (c) should not be considered as an alternative to net income, earnings per share, operating profit, cash flows from operating activities or other financial information determined under GAAP.

Forward-Looking Statement: Certain statements in this release contain “forward-looking statements” within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management’s current expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties. Examples of such statements in this press release include discussions regarding the Company’s planned implementation of its strategic plan, discussions regarding the Company’s planned use of cash for fiscal 2011 including investments in its core business, share repurchases, and debt repayments, the Company’s intention to refinance its current credit facility and the timing thereof, projections and expectations regarding same-store sales for fiscal 2010 and beyond, the Company’s ability to improve restaurant level margins, guidance for new restaurant openings and closures, and the Company’s anticipated 2010 and long-term performance, including projections regarding general and administrative expenses, and net earnings per diluted share, and similar statements of belief or expectation regarding future events. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: competition from other restaurant concepts and food retailers, continued disruptions in the financial markets, the loss of franchisees and other business partners, labor shortages or increased labor costs, increased costs of our principal food products, changes in consumer preferences and demographic trends, as well as concerns about health or food quality, instances of avian flu or other food-borne illnesses, general economic conditions, the loss of senior management and the inability to attract and retain additional qualified management personnel, limitations on our business under our credit facility, our ability to comply with the repayment requirements, covenants, tests and restrictions contained in our credit facility, failure of our franchisees, a decline in the number of franchised units, a decline in our ability to franchise new units, slowed expansion into new markets, unexpected and adverse fluctuations in quarterly results, increased government regulation, effects of volatile gasoline prices, supply and delivery shortages or interruptions, currency, economic and political factors that affect our international operations, inadequate protection of our intellectual property and liabilities for environmental contamination and the other risk factors detailed in our 2009 Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission. Therefore, you should not place undue reliance on any forward-looking statements.

Everyday’s a party at Popeyes, so why not jazz up your Thanksgiving with Popeyes famous Cajun style turkey? The once-a-year limited time offer is available at participating restaurants through December, or until supplies last.

Popeyes Cajun Style Turkeys, approximately 9 to 11 pounds, are infused with a unique blend of Louisiana seasonings then flash-fried, creating a unique, crispy coating. Roasting finishes out the process and leaves the turkey crispy on the outside while remaining succulent and flavorful on the inside.

“The holiday season is centered on fellowship with family and friends,” said Amy Alarcon, director of culinary innovation. “The easy preparation of Popeyes Cajun turkeys—pop in the oven, heat and serve—leaves more time with those you love, and leaves guests enjoying a Cajun culinary masterpiece.”

Popeyes Cajun turkeys are flying out of the fryers this holiday season, so stop by or call your local Popeyes today. You can also go online to www.popeyes.com, search for your local restaurant, and participating restaurants will be indicated with a Cajun Turkey icon under the location address.

AFC Enterprises, Inc. (NASDAQ:AFCE), the franchisor and operator of Popeyes restaurants, today announced the appointment of Mr. Krishnan (Kandy) Anand to its Board of Directors.

Mr. Anand is President of the International division of Molson Coors Brewing Company, and also head of Global Strategy Development. He has served in that capacity since 2009. Prior to joining Coors, Mr. Anand served from 1997–2009 in a number of senior marketing and management positions with The Coca-Cola Company, most recently as President of the Philippines Business Unit. Mr. Anand also has 17 years of strategy and leadership experience including senior marketing, sales and management positions with Unilever plc and its subsidiaries.

“With his 30-years of global strategy experience, Kandy is a valuable addition to our Board and will be a significant asset to the Popeyes leadership team,” said Cheryl Bachelder, AFC Enterprises Chief Executive Officer. “We are extremely pleased to have Kandy join our Board and we look forward to his many meaningful contributions.”

Mr. Anand holds a Bachelor’s of Science in Technology from the India Institute of Technology and a Master’s of Business Administration from the Indian Institute of Management.

“We are delighted to welcome Kandy to our Board,” said John Cranor, AFC Enterprises Board Chairman. “His addition to the Board is consistent with Popeyes rapid global expansion plans and he will bring tremendous value and insight.”

AFC Enterprises, Inc. (NASDAQ: AFCE), the franchisor and operator of Popeyes restaurants, today announced that it has been included among Black Enterprise Magazine’s “40 Best Franchises for African Americans”. The honor recognizes the company’s diversity programs, affordability, revenue potential and marketing/advertising support.

The honor comes at an opportune time as AFC builds upon its existing diversity efforts with an emboldened inclusion strategy, “Roadmap of Opportunity”. To provide leadership and stewardship for the program, AFC has hired Mr. Renay Winston as vice president, Human Resources.

“Our commitment to diversity and inclusion has never wavered,” said Cheryl A. Bachelder, president and CEO. “Both are critical to our growth and success and are key competitive advantages. We are now broadening our initiatives to encompass all of our key stakeholders: employees, franchisees, suppliers and the communities we serve.

Additionally, the Company has engaged two premier diversity and inclusion consulting firms, Roosevelt Thomas Consulting & Training and Basic Diversity, Inc., to support Mr. Winston in driving the program.

The full Black Enterprise article may be viewed at http://www.blackenterprise.com/diversity/2010/06/15/they-want-you/.