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RISE - Menu Monitor

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Personnel |<br />

Cheryl A. Bachelder, CEO<br />

Mel Hope, CFO<br />

Derek Waldrep, V.P. of Purchasing<br />

Bob Melberth, V.P. of Operations<br />

Sue Harwell, V.P. of Marketing<br />

Kirk Waisner, V.P. Research & Development<br />

News & Other |<br />

Trans fats will be reduced or eliminated from some menu items at several chain restaurants. Popeye’s Chicken & Biscuits is<br />

eliminating trans fats from its biscuits and will introduce reducedtrans-fat french fries by year’s end. Burger King will test a<br />

trans-fat-free frying oil within the next 90 days. IHOP is also testing a trans-fat-free oil at its restaurants in the U.S. and<br />

Canada. KFC is using a trans-fat-free soybean oil at its units in New York and Chicago and will roll it out systemwide by spring<br />

of 2007. Souper Salad plans to be trans-fat-free by early December. McDonald’s units in Australia have switched to a frying oil<br />

that is nearly free of trans fatty acids. McDonald’s European units will cut the level of trans fats in frying oil to 2% by 2008.<br />

McDonald’s will use a blend of canola oil and high oleic sunflower oil at these locations. The company did not say whether or<br />

not it would roll out the oil to its U.S. locations. (Los Angeles Times 11/07/06; Reuters 11/07/06; NRN Daily NRN Daily<br />

NewsFax 11/01/06, 11/08/06, 11/10/06)<br />

Popeyes Chicken & Biscuits has opened a prototype called Popeyes Louisiana Kitchen. The new restaurant offers menu items<br />

such as Voodoo BBQ Ribs, Bayou Blackened Catfish and New Orleans-style bread pudding. The unit is also allowing<br />

customers to pay for their meal at self-service kiosks or customers can place their orders by phone and pick them up. The<br />

restaurant opened on December 12 in Norcross, GA. (NRN Daily NewsFax 12/13/06)<br />

Popeye’s Louisiana Kitchen is a new quick-casual hybrid from AFC Enterprises, parent company of Popeye’s Chicken &<br />

Biscuits. Louisiana Kitchen outlets offer a menu of authentic Cajun and Creole recipes and a wider variety of items than the<br />

original Popeye’s chain. While Popeye’s fried chicken remains a signature offering, Louisiana Kitchen also lists New Orleansstyle<br />

shrimp, ribs, Cajun burgers, blackened catfish and red bean & rice soup served in a bread bowl. Its exterior recalls<br />

classic Louisiana architecture with stucco, brick, awnings and balconies. Its interior features colorful murals and jazz music in<br />

the background. Indoor and patio seating are available. The first Louisiana Kitchen unit is located in Norcross, GA, and a<br />

second location in Fayetteville, GA, is due to launch in March 2007. (Company Website)<br />

Popeyes Chicken & Biscuits’ owner AFC Enterprises has filed a $20-million lawsuit against Church’s Chicken and a former<br />

Popeyes franchisee for the recent purchase of 10 Popeyes outlets in Rio Grande Valley, TX. The lawsuit claims that former<br />

AFC franchisee CVI Co. Ltd. broke its contract with the company when it sold the restaurants to Church’s late last year.<br />

Church’s says that the lawsuit is without merit and that it was approached by an unidentified party for the sale. (The Atlanta<br />

Journal-Constitution 3/01/07–3/05/07; NRN Daily NewsFax 3/01/07; Company Release 2/28/07)<br />

Popeye’s Chicken & Biscuits parent AFC Enterprises said that its full-year, per-share profit would reach only the lower end of<br />

its previously announced expectations of 81¢–85¢. For the second quarter ended July 15, the company reported net earnings<br />

increased 29.4%. Revenue rose 11.3% to $38.3 million. Systemwide domestic same-store sales at Popeye’s dropped 2.1%.<br />

(Nation’s Restaurant News 9/3/07)<br />

Popeyes Chicken & Biscuits parent AFC Enterprises has reported third-quarter results and lowered its annual outlook. The<br />

company now expects per-share earnings for the year to total between 78 cents and 80 cents, down from the second-quarter<br />

projection of 81 cents to 85 cents per share. Third-quarter same-store sales were down 2.5% from a year ago, which the<br />

company blames on lower-than-expected results from limited-time offerings and weaker lunch and dinner daypart traffic.<br />

(NRN.com 11/15/07)<br />

©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />

Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />

published.<br />

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