The Company also confirms the tax treatment of the special cash dividend paid on June 3, 2005 in the amount of $12.00 per common share. The Company has determined that 56 percent of the dividend payment shall be characterized as a return of capital, and 44 percent as ordinary dividends.

2006 Period 1 and Period 2 Operating Performance Results for Popeyes

Popeyes reported domestic same-store sales growth was up 8.9 percent for period 1 and up 4.7 percent for period 2 of 2006, compared to up 2.9 percent for period 1 and up 5.8 percent for period 2 of 2005. These results represented positive same-store sales growth for the twenty-first and twenty- second consecutive periods.

Popeyes domestic system-wide average check was up 5.2 percent for period 1 and up 5.5 percent for period 2. Domestic system-wide transactions for period 1 and period 2 were up 3.5 percent and down 0.8 percent, respectively.

                       Domestic Same-Store Sales Growth

                            Period 1     Period 1     Period 2     Period 2
                             Ended        Ended        Ended        Ended
                            1/22/06      1/23/05      2/19/06      2/20/05

    Company                  31.1%         3.1%         17.2        10.0%
    Franchised                8.2%         2.9%         4.3%         5.6%
    Total Domestic            8.9%         2.9%         4.7%         5.8%

During periods 1 and 2, the Popeyes system opened 16 restaurants, compared to 15 total system-wide openings during the same periods in 2005. On a system-wide basis, Popeyes had 1,830 units at the end of period 2 of 2006. Total unit count was comprised of 1,492 domestic units and 338 units in Puerto Rico, Guam and 25 foreign countries. This total unit count represented 1,797 franchised and 33 company-operated restaurants.

2006 Guidance

"We are pleased with the progress the Company made during 2005 and the early results for 2006. 2005 was a transition year, allowing Popeyes to consolidate resources, clarify direction and establish positive sales and restaurant growth trends," said Keymer.

Looking ahead, AFC expects system-wide sales growth for 2006 to be approximately 6-8 percent for the year including the 53rd week in fiscal 2006. This growth is supported by an expected domestic same-store sales growth of 2.0-3.0 percent. Due to the strength of the new opening pipeline, the Company expects system-wide openings to be approximately 130-140 restaurants from previous guidance of 125-135 new openings with domestic openings comprising approximately 60% of the total amount.

In 2006, Popeyes expects to continue to re-open restaurants in the Gulf Coast as the region recovers from Hurricane Katrina. As of March 8, 2006, the Company had re-opened 2 of the 8-12 company-operated restaurants projected to open in New Orleans during 2006. By year end 2006, the Company expects a total of 18-22 company-operated restaurants open and operating in New Orleans. In 2005, company-operated restaurant closures in New Orleans impacted revenue by approximately $10.9 million. Business interruption insurance proceeds and strong same-store sales are expected to substantially offset lost operating profit from these locations throughout 2005 and 2006. The timing and the amount of insurance recoveries are difficult to predict at this time.

To support continued growth, AFC expects to incur $1.0-$1.5 million in additional transition expenses in the first half of 2006 to complete information technology and accounting systems restructuring. The Company expects this work to yield more effective and less expensive services as AFC moves forward as a single brand entity. Additionally, the Company will invest approximately $0.7 million, along with franchisee contributions, to test two national cable television flights in the later half of 2006. "We are excited about the potential of this test, and the impact it may have on the 60 percent of Popeyes restaurants that cannot economically spend funds on television advertising today," stated Keymer.

In 2006, the Company will adopt Statement of Financial Accounting Standards 123R (commonly known as SFAS 123R), resulting in approximately $0.9 million additional compensation expenses related to the Company's issued stock options. The Company expects the total impact of FAS123R for stock options and restricted stock awards to be approximately $3.0-$3.5 million.

Total general and administrative expenses for the year, including $4.7- $5.7 million for systems transition costs, incremental marketing expenditures, and restricted stock and option costs described above, $3.0-$3.5 million for rental expense, and $3.1 million for spice royalty is anticipated to be in the range of $46-$48 million. After applying the adjustments listed above, the company expects general and administrative expenses to be at an adjusted run- rate of $35 million by the third quarter of 2006, which is consistent with earlier guidance.

In 2006, the Company will benefit from a 53rd week in the fourth quarter that increases the Company's revenues by approximately $2.5-$3.0 million and increases general and administrative expenses by approximately $0.4-$0.5 million.