(MENAFN- FxPro) Shares in Popeyes fell more than 7% in after-hours trading, in spite of double-digit percentage gains in revenue and earnings per share during its previous quarter.
Popeyes, the Louisiana-based fried chicken restaurant chain, increased its net profit for its second quarter to $10.3 million or 0.44 per share from $8.3 million or 0.39 per share during the same period in 2014. During the 13-week period, Popeyes increased global same-restaurant sales by 7.5%, reflecting the chains' continued menu innovation, compelling advertising and strengthened restaurant execution, the company said in a statement. By comparison, same-restaurant sales for Popeyes across the globe increased by 3.6% a year earlier in the second quarter.
The restaurant chain also increased revenues from $53.7 million in the second quarter of 2014 to $59.4 million during the previous quarter, amid a $3.5 million increase from franchise royalties. In addition, the company reported a $2.8 million increase in company-owned sales for the period. The chain, however, failed to meet analysts' forecasts of $62.7 million in revenue for the quarter.
"Popeyes' robust second quarter results demonstrate our focused execution against the five pillars of our strategic roadmap," Popeyes' CEO Cheryl Bachelder said in a statement. "The sustainability of our impressive performance is a reflection of the collaborative relationship with our franchisees, innovative product pipeline and emphasis on developing leadership capabilities."
Popeyes' also increased its full-year guidance from $1.84 to $1.98 per diluted share to $1.85 to $1.90. The chain restaurant reaffirmed its commitment to opening between 200 and 225 new stores for fiscal year 2015, including between 85 and 95 outside the U.S.
"Looking forward, we believe there is a long runway for continued growth of Popeyes , both in the U.S. and around the globe," Bachelder added.
Shares in Popeyes fell 4.18 or 7.27% to $53.30 in after-hours trading.
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