A LETTER TO OUR STAKEHOLDERS
Dear Stakeholders,

Over the past two years, we have worked diligently to do what was necessary and prudent to unlock the greatest value at AFC. As I look back over this past year, I must say that I am pleased with what we have accomplished — especially since we set out specifically to execute many of these initiatives twelve months ago.

As 2004 began, we were determined to assess and improve our administrative processes and procedures, resume trading on NASDAQ, evaluate and make appropriate changes to our portfolio, collapse the corporate center, and turn our undivided attention to growing the Popeyes brand.

Despite facing what often were competing priorities, our people remained steadfast and resolute, never wavering from the goal of getting the job done. They worked hard to do what had to be done in the appropriate sequence, while delivering our desired results.

Maintaining a proper balance throughout the year, we were careful to protect the integrity of our brands, the investments of our franchisees, and the work environment of our employees. All the while, we were seeking to improve the value of the enterprise for our shareholders.

The fact that we succeeded in maintaining that balance bodes very well for the future of this company because the majority of the people who did the hard work during 2004 remain with the company and are now focused on our 2005 objectives. There is a sense of genuine enthusiasm about running the business without competing priorities.

Now we are concentrating on just one thing, driving Popeyes to new levels of performance and profitability. That single-minded focus is good for everyone. It is good for our franchisees, who know our efforts are designed to assist them in every way we can toward a “future of opportunity.” It is good for our employees, who can concentrate their efforts on a single brand, ensuring that their energy, creativity, and boundless spirit are devoted to making Popeyes the brand of choice in our industry. And it is good for our shareholders, who will benefit from a streamlined organization that is free from many previous distractions and is committed to building the business.


“...we expect to take deliberate actions that will unlock value as a whole.”
—Frank J. Belatti, AFC 2003 Annual Report		  
There is a school of thought that acquiring businesses is always good and trimming businesses cannot be a positive move. At AFC, we constantly look at both sides of the equation - growth and reduction - and continually analyze what will be in the best interest of the enterprise and our stakeholders. Sometimes it is growth, but sometimes reduction provides the greatest value and clarity and builds the strongest platform for future success.