Popeyes Announces Agreement to Purchase 28 Restaurants; Pays $13.8M

AFC Enterprises 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.”