First Quarter 2009 Highlights compared to First Quarter 2008:     --  Net income was above street expectations at $5.0 million, or $0.20 per       diluted share, compared to $6.4 million, or $0.24 per diluted share,       last year.  Excluding the impact from other non-operating expenses or       income, net income would have been $5.2 million, or $0.21 per diluted       share, compared to $5.6 million, or $0.21 per diluted share last year.     --  System-wide sales increased by 1.1 percent compared to an increase of       1.5 percent last year.     --  Global same-store sales increased 0.2 percent compared to a decrease       of 1.3 percent last year.  Domestic same-store sales decreased 0.3       percent compared to a decrease of 1.8 percent last year.        International same-store sales increased 4.8 percent compared to an       increase of 3.5 percent last year.     --  The Company opened 14 restaurants and closed 31 restaurants, resulting       in net closings of 17 restaurants.  At the end of the first quarter of       2009, total unit count was 1,909 compared to 1,889 last year.     --  The Company generated free cash flow of $7.1 million and repaid $3.9       million on its 2005 Credit Facility.  AFC's free cash flow computation       and reconciliation to GAAP measures are described in detail under the       heading "Use of Non-GAAP Financial Measures."   

AFC Enterprises Chief Executive Officer Cheryl Bachelder stated, "Our first quarter performance was good. Global same-store sales for the quarter were positive for the first time since the second quarter of 2006, and according to independent data, our quarterly domestic same-store sales significantly outpaced the chicken QSR category. This trend improvement is the result of promoting our famous and favorite bone-in chicken and seafood with more compelling price points and an advertising campaign that is resonating with our core consumers. The guest response is very encouraging given the intensely competitive QSR marketplace."

   Strategic Plan Update    1. Build the Popeyes Brand   Popeyes successful famous and favorites promotions are outlined below.    --  During the first quarter, Popeyes kicked-off the Lenten season with       its new $4.99 Butterfly Shrimp Tackle Box promotion featuring 8-pieces       of Butterfly Shrimp with Cajun fries and a buttermilk biscuit.        Popeyes promoted its Bonafide(TM) chicken with two compelling value       offerings featuring 2-pieces of bone-in chicken and a biscuit for       $1.99 and 9-pieces of bone-in chicken or 9-tenders for $7.99. Both       promotions, supported by national cable advertising, delivered       positive guest counts and same-store sales.     --  The Popeyes system promoted 'Popeyes Pay Day' on April 22nd, during       the first week of its second quarter.  This national one-day promotion       featured 8-pieces of Popeyes signature Bonafide(TM) chicken for only       $4.99.  The Company was pleased with the exceptional guest response       and strong same-store sales for that week.     --  In May the Company featured a 2-piece Louisiana Tenders meal for $2.99       and 9-pieces of bone-in chicken or 9-tenders for $7.99.  This       promotion also delivered positive same-store sales which were driven       by positive guest counts.  Popeyes restaurants are continuing to       promote famous and favorite menu items in the second quarter.    2. Run Great Restaurants    --  Popeyes continues to see improvement in its guest experience       monitoring survey.  Overall delighted scores were up 11 percentage       points since the implementation of the program last year.     --  The Company remains focused on improving speed of service for its       guests.  By the end of June, all restaurants will be required to       purchase headsets and timers - essential equipment in running good       drive-thru restaurants.    3. Grow Profitability    --  The Company will continue to focus on improving unit economics and       identifying key markets and growth-ready franchisees for accelerating       unit growth in 2010 and beyond. The Company's goal is to position       Popeyes to ramp up new unit growth as soon as the consumer environment       and credit market conditions improve.    4. Align People and Resources to Deliver Results    --  As previously indicated, the Company is in continued negotiations to       re-franchise the remaining company-operated restaurants in the Atlanta       market and expects to complete the transaction once buyer financing is       secured.    

First Quarter Financial Performance Review compared to First Quarter Last Year

System-wide sales increased by 1.1 percent compared to an increase of 1.5 percent last year.

Global same-store sales increased 0.2 percent compared to a decrease of 1.3 percent last year. Domestic same-store sales decreased 0.3 percent compared to a decrease of 1.8 percent last year. International same-store sales increased 4.8 percent compared to an increase of 3.5 percent last year.

Total revenues were $47.9 million compared to $53.3 million last year. The decrease in revenues was principally due to the Company's successful re-franchising of 14 company-operated restaurants in the Atlanta and Nashville markets. After adjusting for franchise revenue, general and administrative savings, and lower depreciation and amortization, the first quarter impact of re-franchising those company-operated restaurants was favorable to operating profit by approximately $0.5 million.

Company-operated restaurant expenses for food, beverages and packaging as a percentage of sales were 33.2 percent compared to 34.8 percent last year. This 1.6 percentage point improvement was primarily attributable to better restaurant-level disciplines and the re-franchising of company-operated restaurants. Restaurant employee, occupancy and other expenses as a percentage of sales were 51.9 percent compared to 50.0 percent last year. This increase was primarily due to costs for additional management talent to operate company restaurants, planned incremental advertising fund contributions and insurance.

General and administrative expenses were $17.7 million or 3.3 percent of system-wide sales, compared to $16.1 million or 3.0 percent of system-wide sales last year. The increase was attributable to the Company's $1.6 million investment in national cable advertising and the timing associated with other costs such as professional fees and travel. For the full year, the Company expects general and administrative expenses to be in-line with its guidance of 3.1-3.2 percent of system-wide sales.

Other expenses were $0.4 million, compared to $1.3 million of other income last year which was realized as a result of non-operating gain on property sales and favorable insurance settlements.

EBITDA was $11.5 million, a margin of 24.0 percent of total revenues, compared to $15.4 million, a margin of 28.9 percent of total revenues, last year. This decrease was primarily due to $1.6 million for national cable advertising and a $1.7 million variance in other expenses (income), comprised primarily of non-operating gains and losses from property sales and insurance settlements. AFC's EBITDA computation and reconciliation to GAAP measures is described in detail under the heading "Use of Non-GAAP Financial Measures."

Interest expense, net was $1.7 million, compared to $2.8 million last year. This decrease reflects the lower average interest rates and lower average debt balances in the first quarter of 2009.

Income tax expense had an effective tax rate of 39.0 percent, compared to an effective tax rate of 39.0 percent in the prior year.

Net income was $5.0 million, or $0.20 per diluted share, compared to $6.4 million, or $0.24 per diluted share, for last year. Excluding other non-operating expenses or income, net income would have been $5.2 million or $0.21 per diluted share, compared to $5.6 million or $0.21 per diluted share last year.

The Company generated $7.1 million in free cash flow and made $3.9 million in net debt repayments under its 2005 Credit Facility. AFC's free cash flow computation and reconciliation to GAAP measures is described in detail under the heading "Use of Non-GAAP Financial Measures."

The Company opened 14 restaurants globally, including 5 domestic and 9 international, compared to 37 restaurants last year. As planned, the Company's 31 restaurant closures in the first quarter exceeded openings, but were comparable to last year's closure of 32 restaurants. Closures consisted of 23 domestic restaurants and 8 international restaurants.

On a system-wide basis, Popeyes had 1,909 restaurants operating at the end of first quarter 2009, compared to 1,889 restaurants last year. Total unit count was comprised of 1,571 domestic restaurants and 338 international restaurants in 26 foreign countries and two territories. Of this total, 1,858 were franchised restaurants and 51 were company-operated restaurants.

Fiscal 2009 Guidance

Given the favorable guest response to Popeyes new value offerings, the Company is projecting global same-store sales for fiscal 2009 to be in the range of negative 1.0 percent to positive 1.0 percent, an increase from our previous guidance of negative 1.0 percent to negative 3.0 percent.