Popeyes Louisiana Kitchen, Inc. (PLKI) has reported a 4.17 percent fall in profit for the quarter ended Dec. 25, 2016. The company has earned $9.20 million, or $0.44 a share in the quarter, compared with $9.60 million, or $0.42 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $10 million, or $0.48 a share compared with $9.60 million or $0.42 a share, a year ago.
Revenue during the quarter grew 3.39 percent to $61 million from $59 million in the previous year period. Gross margin for the quarter expanded 311 basis points over the previous year period to 68.36 percent. Total expenses were 71.80 percent of quarterly revenues, down from 73.22 percent for the same period last year. This has led to an improvement of 142 basis points in operating margin to 28.20 percent.
Operating income for the quarter was $17.20 million, compared with $15.80 million in the previous year period.
"We are pleased to report another year of strong performance at Popeyes," said Cheryl Bachelder, Popeyes chief executive officer. "Driving the top line through a careful balance of innovative offerings and core menu value has created momentum in the fourth quarter, despite challenging market conditions. In 2016, we delivered global same-store sales growth of 1.7%, our 8th consecutive year of positive same-store sales growth, and 216 new restaurant openings around the world."
Operating cash flow improves
Popeyes Louisiana Kitchen, Inc. has generated cash of $66.40 million from operating activities during the year, up 5.90 percent or $3.70 million, when compared with the last year. The company has spent $10.20 million cash to meet investing activities during the year as against cash outgo of $12.60 million in the last year. It has incurred net capital expenditure of $10.20 million on net basis during the year, down 19.05 percent or $2.40 million from year ago.
The company has spent $53.70 million cash to carry out financing activities during the year as against cash outgo of $49.40 million in the last year period.
Cash and cash equivalents stood at $11.60 million as on Dec. 25, 2016, up 27.47 percent or $2.50 million from $9.10 million on Dec. 27, 2015.
Debt increases substantially
Popeyes Louisiana Kitchen, Inc. has witnessed an increase in total debt over the last one year. It stood at $159.80 million as on Dec. 25, 2016, up 41.92 percent or $47.20 million from $112.60 million on Dec. 27, 2015. Total debt was 60.95 percent of total assets as on Dec. 25, 2016, compared with 42.22 percent on Dec. 27, 2015. Debt to equity ratio was at 19.02 as on Dec. 25, 2016, up from 1.89 as on Dec. 27, 2015.
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