Popeyes Louisiana Kitchen reported results for its fiscal first quarter of 2016, which ended April 17, 2016.
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Total revenues increased 3.4% to $82.2 million, compared to $79.5 million in the first quarter of 2015.
Reported net income was $12.9 million, or $0.58 per diluted share, compared to $13.6 million, or $0.58 per diluted share in the first quarter 2015. Adjusted earnings per diluted share were $0.58 in both the first quarter of 2016 and 2015.
System-wide sales increased 6.4%. Global same-store sales increased 1.6%.
Total domestic same-store sales increased 1.1%, compared to a 7.1% increase in the first quarter of 2015, marking our 21st consecutive quarter of positive domestic same-store sales growth. Popeyes has increased its domestic market share of the chicken-QSR category to 26.3%, compared to 24.6% in the first quarter of 2015.
International same-store sales increased 6.2%, compared to a 6.1% increase in the first quarter of 2015, marking our 27th consecutive quarter of positive international same-store sales growth.
Sales by Company-operated restaurants were $34.6 million in the first quarter compared to $34.7 million last year. Company-operated restaurant operating profit was $7.0 million, or 20.2% of sales, compared to $7.5 million, or 21.6% of sales in 2015.
Lower sales and operating profit in new markets and higher labor costs were partially offset by favorable chicken and grocery basket costs.
Operating EBITDA was $25.0 million, or 30.4% of total revenues, compared to $26.1 million, or 32.8% of total revenues in the first quarter of 2015. The decrease was primarily due to planned general and administrative investments to support new Strategic Roadmap initiatives.
Free cash flow was $16.8 million, compared to $17.7 million in the first quarter of 2015.
The Popeyes system opened 44 restaurants, which included 19 domestic and 25 international restaurants. Net restaurant openings were 25.
As of the end of the first quarter, the Company operated and franchised 2,569 restaurants, compared to 2,420 at the end of the first quarter in 2015, representing net unit growth of 6.2% over the last twelve months.
Popeyes Louisiana Kitchen repurchased 554,086 shares of its common stock for approximately $30 million. ■