Popeyes Profit Falls On Expenses - Update

(RTTNews) - Restaurant operator Popeyes Louisiana Kitchen Inc (PLKI), Wednesday reported a marginal decline in second-quarter profit, hurt by expenses that offset a 12 percent climb in revenue.

Popeyes reaffirmed its guidance for the full year.

Popeyes, based in Atlanta, Georgia, posted quarterly net earnings of $8.3 million, compared with $8.5 million last year. On a per share basis, earnings were flat at $0.36.

Excluding items, adjusted earnings for the quarter were $0.39 per share, compared with $0.35 per share a year ago.

On average, six analysts polled by Thomson Reuters expected earnings of $0.39 per share for the ' quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter rose 12 percent to $53.7 million from $47.9 million a year ago. Analysts expected revenue of $54.8 million for the quarter.

Same store revenue for the second quarter climbed 3.6 percent, compared with 4.4 percent last year.

The restaurant operating margin of company restaurants was higher at 19.7 percent, compared with 19.1 percent last year.

Results were hurt by an increase in total expenses to $39.6 million from $33.4 million last year.

For fiscal year 2014, Popeyes still expects adjusted earnings of $1.58 to $1.63 per share and same store sales growth of 3 to 4 percent. Analysts currently expect earnings of $1.63 per share.

Popeyes is the world's second-largest quick-service chicken concept based on number of units. As of July 13, Popeyes had 56 company-operated restaurants and 2,206 franchised outlets.

In June, Popeyes announced the purchase of the recipes and formulas used to prepare many of its core menu items from Diversified Foods and Seasonings for $43 million.

Popeyes stock closed Wednesday at $40.75, up $0.55 or 1.37%, on a volume of 165k shares on the Nasdaq.