UPDATE: Piper Jaffray Initiates AFC Enterprises at Overweight on Brand Strength

Piper Jaffray initiated coverage on AFC Enterprises

with an Overweight rating and a $28 price target. Piper Jaffray commented, "We are initiating coverage of AFC Enterprises, Inc. with an Overweight rating and $28 price target, which is ~11x our FY13 EV/EBITDA. We believe this multiple is appropriate given the company's predictable and profitable business model. Evidence of the Popeyes brand equity is consistent positive LSD+ same-store sales, steady MSD+ unit development and operating margin expansion. Upside to earnings may result from the company's ability to embrace its authentic Southern heritage in the form of remodels and its system to promote operational excellence and accelerated development -- all of which serve as potential catalysts." AFC Enterprises closed at $25.32 on Thursday.