AFC Enterprises, Inc. (NASDAQ: AFCE), the franchisor and operator of Popeyes Louisiana Kitchen restaurants, announced that it has entered into a definitive agreement to acquire 28 restaurants in Minnesota and Northern California at a price of $13.8 Million.
The restaurants are currently in the trade image of another quick service restaurant concept. The Company intends to convert the restaurants to Popeyes Louisiana Kitchen restaurants at a cost of approximately $11.5 Million. Following the conversion, the restaurants will be leased to Popeyes franchisees to operate.
The purchase agreement is subject to bankruptcy court approval and the acquisition is expected to close in November.
Cheryl Bachelder, AFC Enterprises, Inc. CEO said, “The rapid opening of 28 new Popeyes restaurants will give Popeyes a major footprint in places where we currently have almost no presence. We are delighted at this opportunity to accelerate the growth of the Popeyes system and to bring Popeyes’ fresh new image and flavorful food to the people of Minneapolis/St. Paul and Northern California.”
AFC Enterprises, Inc. is the franchisor and operator of Popeyes restaurants, the world’s second-largest quick-service chicken restaurant concept based on number of units. As of July 8, 2012, Popeyes had 2,049 restaurants operating in the United States, Puerto Rico, Guam, the Cayman Islands and 25 foreign countries. AFC’s primary objective is to deliver industry-competitive growth in sales and profits by offering excellent investment opportunities in its Popeyes brand and providing exceptional support systems and services to its franchise owners. AFC Enterprises can be found at www.afce.com.