focus on new domestic markets in Boston, Las Vegas, Phoenix, and Seattle, in addition to the existing markets in Chicago, New York, and Washington, D.C. Internationally, Popeyes will be primarily focusing on new unit growth in Canada and Latin America.

As I look back on 2004, I am struck by the fact that not once did we rush into a decision. We were deliberate in our actions, always striving to make the right choices — choices that would enhance shareholder value. We have simply tried to do the right things, in the right sequence, at the right time, always looking to maximize value and protect the interests of everyone associated with the company. Now, we are being just as purposeful with Popeyes.

In light of all that has taken place over the last two years, we have dedicated 2005 solely to further drive improvements and enhance the growth prospects for Popeyes. Our job is to make sure the Popeyes team has minimum distractions and to give them the full support they need to succeed.

We leave 2004 with fewer moving parts and a greater capacity to focus. That is important because there is still a good deal of work to be done. And there are no better people to do it than the people of AFC. There is a work ethic here that inspires us to keep going until everything is done - and done to the best of our ability.

Now we are gearing up for our new priority - making Popeyes a compelling choice for our guests, our franchisees, our employees and our shareholders.

Winston Churchill said, “A pessimist sees the difficulty in every opportunity; and an optimist sees the opportunity in every difficulty.” Surely, AFC has seen its share of difficulties over the last couple of years, but by also seeing the opportunity in our difficulties, we have become stronger, leaner, more focused and better positioned to write the next successful chapter in our history.
 
Frank J. Belatti
Chairman and CEO