1041379--3/10/2010--AFC_ENTERPRISES

related topics

{cost, regulation, environmental}

{cost, operation, labor}

{customer, product, revenue}

{operation, natural, condition}

{personnel, key, retain}

{operation, international, foreign}

{debt, indebtedness, cash}

{property, intellectual, protect}

{stock, price, operating}

{acquisition, growth, future}

{product, liability, claim}

{condition, economic, financial}

{product, market, service}

If our franchisees are unable or unwilling to open a sufficient number of restaurants, our growth strategy could be at risk. Changes in consumer preferences and demographic trends could result in a loss of customers and reduce our revenues. Adverse publicity related to food safety and quality could result in a loss of customers and reduce our revenues. If the cost of chicken increases, our cost of sales will increase and our operating results could be adversely affected. Instances of food-borne illness or avian flu could adversely affect the price and availability of poultry and other foods and create negative publicity which could result in a decline in our sales. If we face labor shortages or increased labor costs, our growth and operating results could be adversely affected. Currency, economic, political and other risks associated with our international operations could adversely affect our operating results. Our operating results and same-store sales may fluctuate significantly and could fall below the expectations of securities analysts and investors, which could cause the market price of our common stock to decline. We are subject to government regulation, and our failure to comply with existing regulations or increased regulations could adversely affect our business and operating results. Shortages or interruptions in the supply or delivery of fresh food products could adversely affect our operating results. If any member of our senior management left us, our operating results could be adversely affected, and we may not be able to attract and retain additional qualified management personnel. We may not be able to adequately protect our intellectual property, which could harm the value of our Popeyes brand and branded products and adversely affect our business. Our 2005 Credit Facility, as amended and restated, may limit our ability to expand our business, and our ability to comply with the repayment requirements, covenants, tests and restrictions contained in the 2005 Credit Facility may be affected by events that are beyond our control.

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1041379--3/10/2010--AFC_ENTERPRISES_INC