In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Popeyes Louisiana Kitchen franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Popeyes Louisiana Kitchen franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Popeyes Louisiana Kitchen outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Popeyes Louisiana Kitchen franchise opportunity

Section V – Presentation and analysis of Popeyes Louisiana Kitchen’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, high, and low sales for the company-owned and franchised free-standing, company-owned and franchised in-line, and franchised food court Popeyes Louisiana Kitchen Restaurants that were open throughout the company’s entire fiscal year ended December 31, 2023

• 2023 average sales, food and paper costs, labor costs, other costs, and EBITDA for the 2,447 franchised free-standing and in-line Popeyes Louisiana Kitchen Restaurants that were continuously operated for the 12-month period ended December 31, 2023 and submitted complete and properly prepared profit and loss statements for 2023

Section VI – Key ratios, comparables, computations, and analyses for the Popeyes Louisiana Kitchen franchise opportunity (exclusive content for Platinum subscribers)

Section I – Popeyes Louisiana Kitchen Franchise Costs

• Initial Franchise Fee:  $50,000
• Real Estate:  Variable
• Soft Costs:  $10,000 to $420,000
• Site Work:  $40,000 to $800,000
• Building:  $700,000 to $1,600,000
• FF&E, Signage, and Technology:  $325,000 to $850,000
• Initial Training:  $17,200 to $24,200
• Opening Supplies:  $13,000 to $26,000
• Insurance:  $9,000 to $19,000
• Utility Deposits:  $3,000 to $50,000
• Business Licenses:  $1,300 to $6,500
• Additional Funds – 3 Months:  $20,000 to $30,000
• Total Estimated Popeyes Louisiana Kitchen Franchise Costs:  $1,188,500 to $3,875,700

Section II – Popeyes Louisiana Kitchen’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $50,000
• Royalty:  5% of Gross Sales
• Advertising Contribution:  4% of Gross Sales
• Advertising Co-op:  currently 0.5% to 1.75% of Gross Sales as established by Local Advertising Co-op

Section III – Number of Franchised and Company-Owned Popeyes Louisiana Kitchen Outlets

Franchised

2021

• Outlets at the Start of the Year:  2,593
• Outlets at the End of the Year:  2,736
• Net Change:  +143

2022

• Outlets at the Start of the Year:  2,736
• Outlets at the End of the Year:  2,905
• Net Change:  +169

2023

• Outlets at the Start of the Year:  2,905
• Outlets at the End of the Year:  3,035
• Net Change:  +130

Company-Owned

2021

• Outlets at the Start of the Year:  41
• Outlets at the End of the Year:  41
• Net Change:  0

2022

• Outlets at the Start of the Year:  41
• Outlets at the End of the Year:  41
• Net Change:  0

2023

• Outlets at the Start of the Year:  41
• Outlets at the End of the Year:  41
• Net Change:  0

Section IV – News Updates on the Popeyes Louisiana Kitchen Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Popeyes Louisiana Kitchen Franchise (Item 19, 2024 FDD)

• The following tables present information about the 2023 annual sales and EBITDA of certain Popeyes Restaurants in the United States (excluding U.S. territories) that were open throughout the company’s entire fiscal year ended December 31, 2023.

Part 1 – Free-Standing Restaurants

• Free-standing Popeyes Restaurants include any type of restaurant other than in-line restaurants, convenience store restaurants, mall restaurants, food court restaurants, and mobile kitchen restaurants.

• As of December 31, 2023, there were 40 company-operated free-standing Popeyes Restaurants and 2,326 franchised free-standing Popeyes Restaurants in the Popeyes System. 38 company-operated free-standing Popeyes Restaurants and 2,149 franchised free-standing Popeyes Restaurants were continuously operated for the 12-month period ended December 31, 2023 and the 2023 sales information in the chart immediately below was taken from these Restaurants.

• 177 franchised and 2 company-operated free-standing Popeyes Restaurants have been excluded from the chart immediately below because they had not been in continuous operation during the 12-month period ended December 31, 2023.

• Of the franchised Restaurants, 56 were excluded because they temporarily closed during the 12-month period ended December 31, 2023. Popeyes has also excluded 24 franchised Restaurants that permanently closed during this period. None of the Restaurants that permanently closed were open for less than 12 months before closing.

Company-Owned Restaurants

• Average Sales:  $2,106,928
• Percentage and Number of Restaurants That Met or Exceeded Average:  44.7% / 17
• Median Sales:  $2,051,053
• High Sales:  $3,412,417
• Low Sales:  $636,631
• Number of Restaurants:  38

• Upper Range Average Sales ($2,000,000+):  $2,567,880
• Percentage and Number of Restaurants That Met or Exceeded Average:  33.3% / 7
• Upper Range Median Sales ($2,000,000+):  $2,479,948
• High Sales:  $3,412,417
• Low Sales:  $2,016,149
• Number of Restaurants:  21

• Middle Range Average Sales ($1,500,000 to $1,999,999):  $1,713,939
• Percentage and Number of Restaurants That Met or Exceeded Average:  63.6% / 7
• Middle Range Median Sales ($1,500,000 to $1,999,999):  $1,751,970
• High Sales:  $1,869,556
• Low Sales:  $1,517,341
• Number of Restaurants:  11

• Low Range Average Sales ($0 to $1,499,999):  $1,214,074
• Percentage and Number of Restaurants That Met or Exceeded Average:  83.3% / 5
• Low Range Median Sales ($0 to $1,499,999):  $1,321,390
• High Sales:  $1,438,394
• Low Sales:  $636,631
• Number of Restaurants:  6

Franchised Restaurants

• Average Sales:  $1,936,648
• Percentage and Number of Restaurants That Met or Exceeded Average:  43.2% / 929
• Median Sales:  $1,832,084
• High Sales:  $6,012,351
• Low Sales:  $245,868
• Number of Restaurants:  2,149

• Upper Range Average Sales ($2,000,000+):  $2,658,190
• Percentage and Number of Restaurants That Met or Exceeded Average:  39.5% / 334
• Upper Range Median Sales ($2,000,000+):  $2,485,282
• High Sales:  $6,012,351
• Low Sales:  $2,001,883
• Number of Restaurants:  845

• Middle Range Average Sales ($1,500,000 to $1,999,999):  $1,749,514
• Percentage and Number of Restaurants That Met or Exceeded Average:  52.3% / 358
• Middle Range Median Sales ($1,500,000 to $1,999,999):  $1,761,868
• High Sales:  $1,999,892
• Low Sales:  $1,500,231
• Number of Restaurants:  685

• Low Range Average Sales ($0 to $1,499,999):  $1,158,756
• Percentage and Number of Restaurants That Met or Exceeded Average:  55.6% / 344
• Low Range Median Sales ($0 to $1,499,999):  $1,199,637
• High Sales:  $1,497,435
• Low Sales:  $245,868
• Number of Restaurants:  619

Consolidated Restaurants

• Average Sales:  $1,939,607
• Percentage and Number of Restaurants That Met or Exceeded Average:  43.2% / 944
• Median Sales:  $1,833,719
• High Sales:  $6,012,351
• Low Sales:  $245,868
• Number of Restaurants:  2,187

• Upper Range Average Sales ($2,000,000+):  $2,656,000
• Percentage and Number of Restaurants That Met or Exceeded Average:  39.6% / 343
• Upper Range Median Sales ($2,000,000+):  $2,485,225
• High Sales:  $6,012,351
• Low Sales:  $2,001,883
• Number of Restaurants:  866

• Middle Range Average Sales ($1,500,000 to $1,999,999):  $1,748,952
• Percentage and Number of Restaurants That Met or Exceeded Average:  50.0% / 348
• Middle Range Median Sales ($1,500,000 to $1,999,999):  $1,761,848
• High Sales:  $1,999,892
• Low Sales:  $1,500,231
• Number of Restaurants:  696

• Low Range Average Sales ($0 to $1,499,999):  $1,159,287
• Percentage and Number of Restaurants That Met or Exceeded Average:  53.0% / 331
• Low Range Median Sales ($0 to $1,499,999):  $1,199,989
• High Sales:  $1,497,435
• Low Sales:  $245,868
• Number of Restaurants:  625

Part 2 – In-Line Restaurants

• For purposes of this Part 2, in-line Popeyes Restaurants are those Restaurants located in traditional “strip style” retail shopping centers and within or attached to convenience stores. The results of operation of both types of location are similar and are shown in this Part 2.

• As of December 31, 2023, there was 1 company-operated and 507 franchised in-line Popeyes Restaurants in the Popeyes System. 482 franchised in-line Popeyes Restaurants were continuously operated for the 12-month period ended December 31, 2023 and the 2023 sales information in the chart immediately below was taken from these Restaurants.

• 25 franchised in-line Popeyes Restaurants have been excluded from the chart immediately below because they had not been in continuous operation during the 12-month period ended December 31, 2023.

• Of these franchised Restaurants, 12 were excluded because they temporarily closed during the 12-month period ended December 31, 2023. Popeyes has also excluded 7 Restaurants that permanently closed during this period. None of the Restaurants that permanently closed were open for less than 12 months before closing.

Company-Owned Restaurants

• Average Sales:  $3,351,310
• Percentage and Number of Restaurants That Met or Exceeded Average:  100.0% / 1
• Median Sales:  $3,351,310
• High Sales:  $3,351,310
• Low Sales:  $3,351,310
• Number of Restaurants:  1

• Upper Range Average Sales ($2,000,000+):  $3,351,310
• Percentage and Number of Restaurants That Met or Exceeded Average:  100.0% / 1
• Upper Range Median Sales ($2,000,000+):  $3,351,310
• High Sales:  $3,351,310
• Low Sales:  $3,351,310
• Number of Restaurants:  1

• Middle Range Average Sales ($1,500,000 to $1,999,999):  –
• Percentage and Number of Restaurants That Met or Exceeded Average:  –
• Middle Range Median Sales ($1,500,000 to $1,999,999):  –
• High Sales:  –
• Low Sales:  –
• Number of Restaurants:  –

• Low Range Average Sales ($0 to $1,499,999):  –
• Percentage and Number of Restaurants That Met or Exceeded Average:  –
• Low Range Median Sales ($0 to $1,499,999):  –
• High Sales:  –
• Low Sales:  –
• Number of Restaurants:  –

Franchised Restaurants

• Average Sales:  $1,837,829
• Percentage and Number of Restaurants That Met or Exceeded Average:  42.9% / 207
• Median Sales:  $1,739,994
• High Sales:  $5,934,244
• Low Sales:  $506,568
• Number of Restaurants:  482

• Upper Range Average Sales ($2,000,000+):  $2,612,362
• Percentage and Number of Restaurants That Met or Exceeded Average:  33.7% / 55
• Upper Range Median Sales ($2,000,000+):  $2,455,313
• High Sales:  $5,934,244
• Low Sales:  $2,004,559
• Number of Restaurants:  163

• Middle Range Average Sales ($1,500,000 to $1,999,999):  $1,734,746
• Percentage and Number of Restaurants That Met or Exceeded Average:  55.2% / 79
• Middle Range Median Sales ($1,500,000 to $1,999,999):  $1,749,611
• High Sales:  $1,999,825
• Low Sales:  $1,500,215
• Number of Restaurants:  143

• Low Range Average Sales ($0 to $1,499,999):  $1,204,262
• Percentage and Number of Restaurants That Met or Exceeded Average:  56.8% / 100
• Low Range Median Sales ($0 to $1,499,999):  $1,252,025
• High Sales:  $1,499,815
• Low Sales:  $506,568
• Number of Restaurants:  176

Consolidated Restaurants

• Average Sales:  $1,840,963
• Percentage and Number of Restaurants That Met or Exceeded Average:  42.7% / 206
• Median Sales:  $1,740,097
• High Sales:  $5,934,244
• Low Sales:  $506,568
• Number of Restaurants:  483

• Upper Range Average Sales ($2,000,000+):  $2,616,868
• Percentage and Number of Restaurants That Met or Exceeded Average:  33.5% / 55
• Upper Range Median Sales ($2,000,000+):  $2,456,405
• High Sales:  $5,934,244
• Low Sales:  $2,004,559
• Number of Restaurants:  164

• Middle Range Average Sales ($1,500,000 to $1,999,999):  $1,734,746
• Percentage and Number of Restaurants That Met or Exceeded Average:  55.2% / 79
• Middle Range Median Sales ($1,500,000 to $1,999,999):  $1,749,611
• High Sales:  $1,999,825
• Low Sales:  $1,500,215
• Number of Restaurants:  143

• Low Range Average Sales ($0 to $1,499,999):  $1,204,262
• Percentage and Number of Restaurants That Met or Exceeded Average:  56.8% / 100
• Low Range Median Sales ($0 to $1,499,999):  $1,252,025
• High Sales:  $1,499,815
• Low Sales:  $506,568
• Number of Restaurants:  176

Part 3 – Franchised Food Court Restaurants

• Food court Popeyes Restaurants are located within the confines of food court locations, such as free-standing food court buildings, malls, airports, travel plazas, amusement parks, military bases, and other retail areas where common seating with other food concepts is generally used. In many of the food court Popeyes Restaurants, the Restaurant has no control over the days or hours the host location is open.

• As of December 31, 2023, there were 177 franchised food court Popeyes Restaurants in the Popeyes System. 141 franchised food court Popeyes Restaurants were continuously operated for the 12-month period ended December 31, 2023 and the 2023 sales information in the chart immediately below was taken from these Restaurants.

• 36 franchised food court Popeyes Restaurants have been excluded from the chart immediately below because they had not been in continuous operation during the 12-month period ended December 31, 2023.

• Of these franchised Restaurants, 2 were excluded because they temporarily closed during the 12-month period ended December 31, 2023. None of the Restaurants that permanently closed were open for less than 12 months before closing.

Franchised Restaurants

• Average Sales:  $1,432,345
• Percentage and Number of Restaurants That Met or Exceeded Average:  41.1% / 58
• Median Sales:  $1,292,075
• High Sales:  $5,704,280
• Low Sales:  $270,016
• Number of Restaurants:  141

• Upper Range Average Sales ($2,000,000+):  $2,690,564
• Percentage and Number of Restaurants That Met or Exceeded Average:  34.8% / 8
• Upper Range Median Sales ($2,000,000+):  $2,367,727
• High Sales:  $5,704,280
• Low Sales:  $2,005,570
• Number of Restaurants:  23

• Middle Range Average Sales ($1,500,000 to $1,999,999):  $1,678,082
• Percentage and Number of Restaurants That Met or Exceeded Average:  40.6% / 13
• Middle Range Median Sales ($1,500,000 to $1,999,999):  $1,634,600
• High Sales:  $1,999,101
• Low Sales:  $1,505,240
• Number of Restaurants:  32

• Low Range Average Sales ($0 to $1,499,999):  $1,004,408
• Percentage and Number of Restaurants That Met or Exceeded Average:  51.2% / 44
• Low Range Median Sales ($0 to $1,499,999):  $1,022,890
• High Sales:  $1,469,082
• Low Sales:  $270,016
• Number of Restaurants:  86

Part 4 – EBITDA by Annual Sales Level – Free-Standing and In-Line Franchised Restaurants

• Set forth below are calculations of EBITDA as a percentage of 2023 Annual Sales and certain select expenses based upon Annual Sales Levels of <$1.5 million, $1.5 million to $2.0 million, $2.0 million to $2.5 million, and >$2.5 million.

• This information has been derived from 2023 profit and loss statements submitted by franchised free-standing and in-line Popeyes Restaurants that were continuously operated for the 12-month period ended December 31, 2023. As of December 31, 2023, there were 2,833 franchised free-standing and in-line Popeyes Restaurants in operation. These calculations are based on the information received from 2,447 of these Restaurants.

• Excluded from the chart immediately below are 184 Restaurants that did not submit or submitted incomplete or improperly prepared profit and loss statements for 2023, and 202 Restaurants that were not operational for the entire 12-month period ended December 31, 2023 due to temporary closure, permanent closure, or because they opened during 2023.

• Popeyes has also excluded 14 Restaurants that permanently closed during 2023. Of the 33 Restaurants that permanently closed during 2023, none of these Restaurants were open for less than 12 months before closing.

Annual Sales Level: < $1.5M

• Sales:  $1,169,351
• Food and Paper Costs:  34.0%
• Labor Costs:  29.9%
• Other Costs:  31.9%
• EBITDA:  $48,761 (4.2%)
• Number of Restaurants in Range:  713

Annual Sales Level: $1.5M to $2.0M

• Sales:  $1,743,373
• Food and Paper Costs:  32.9%
• Labor Costs:  26.3%
• Other Costs:  29.0%
• EBITDA:  $203,487 (11.7%)
• Number of Restaurants in Range:  773

Annual Sales Level: $2.0M to $2.5M

• Sales:  $2,225,047
• Food and Paper Costs:  32.6%
• Labor Costs:  25.2%
• Other Costs:  27.9%
• EBITDA:  $319,334 (14.4%)
• Number of Restaurants in Range:  499

Annual Sales Level: >$2.5M

• Sales:  $3,119,800
• Food and Paper Costs:  32.1%
• Labor Costs:  24.4%
• Other Costs:  26.0%
• EBITDA:  $548,713 (17.6%)
• Number of Restaurants in Range:  462

Part 5 – EBITDA by Operational Tier – Free-Standing and In-Line Franchised

• Set forth below are calculations of EBITDA as a percentage of 2023 Annual Sales and certain select expenses based upon Operational Tiers for the Popeyes Restaurants whose information was included in Part 4 above. An Operational Tier represents the quality of the Restaurant’s operations, with Tier 4 representing the lowest score, and Tier 1 representing the highest score.

• Popeyes assigns Operational Tiers three times annually based on objective factors including number of guest complaints, speed of service, percentage of training certifications completed, and third-party audit results focused on brand standards.

• The Operational Tiers below reflect the average of three distinct full-round of assignments between January 1, 2023 and December 31, 2023.

Operational Tier 4

• Sales:  $1,490,904
• Food and Paper Costs:  35.4%
• Labor Costs:  27.8%
• Other Costs:  30.3%
• EBITDA:  $97,315 (6.5%)
• Number of Restaurants in Tier:  162

Operational Tier 3

• Sales:  $1,576,624
• Food and Paper Costs:  34.3%
• Labor Costs:  27.6%
• Other Costs:  29.8%
• EBITDA:  $131,419 (8.3%)
• Number of Restaurants in Tier:  267

Operational Tier 2

• Sales:  $1,855,282
• Food and Paper Costs:  33.2%
• Labor Costs:  26.5%
• Other Costs:  28.5%
• EBITDA:  $217,306 (11.7%)
• Number of Restaurants in Tier:  876

Operational Tier 1

• Sales:  $2,141,251
• Food and Paper Costs:  32.0%
• Labor Costs:  25.4%
• Other Costs:  27.8%
• EBITDA:  $318,477 (14.9%)
• Number of Restaurants in Tier:  1,142

Section VI – Popeyes Louisiana Kitchen Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️