ATLANTA, Aug. 7, 2003 (PRIMEZONE) -- Church's Chicken(tm), a division of AFC Enterprises, Inc. (Nasdaq:AFCEE), announced the signing of an agreement with Kuwait United Poultry Company (KUPCO) to develop 60 restaurants over the next five years throughout the region identified as the Gulf Cooperation Council (GCC). The countries comprising the GCC are Bahrain, Kuwait, Oman, Saudi Arabia, United Arab Emirates and Qatar. The first four restaurants are scheduled to open in Kuwait in 2003. The 60-unit development commitment was reported in a previous AFC release.
KUPCO is the premier chicken production company in the GCC and its clients include major government ministries and institutions such as the ministries of Defense, Public Health and Interior. Its distribution outlets include cooperative societies, food processing companies, restaurants, major hotels and company-owned outlets. The company also exports large quantities of frozen chicken and eggs to the GCC countries.
Church's Chicken had been searching for the right partner to develop Church's in the region. "We are very pleased to introduce the Church's brand to these new locations in the Middle East. KUPCO is extremely knowledgeable of the market and will assist us in ensuring the project is successful," Moddelmog stated.
"Church's Chicken is expanding in the Middle East because of a demand for American southern-style fried chicken, the capacity to build a large quantity of restaurants in a short timeframe and vast additional development possibilities," said Tom Johnson, Chief Operating Officer for Church's International Division.
According to Johnson, Church's Chicken will operate in the region under the name Texas Chicken(tm). The restaurants will serve Church's international menu, which includes sandwiches, salads, wraps, boneless chicken products, and various other platters.
About Church's Chicken
Church's Chicken, one of the world's largest quick-service chicken restaurant concepts, focuses on high quality food served at a value price. Menu specialties include Southern-style chicken and side items such as corn on the cob, fried okra, mashed potatoes and gravy, and signature Honey-Butter Biscuits. Church's Chicken has more than 1,500 locations worldwide driving system-wide sales of approximately $900 million in 2001. Visit Church's Chicken on the World Wide Web at www.churchs.com.
About AFC Enterprises
AFC Enterprises, Inc. is the franchisor and operator of 4,131 restaurants, bakeries and cafes as of May 18, 2003, prior to the sale of Seattle Coffee Company to Starbucks Corporation, in the United States, Puerto Rico and 32 foreign countries under the brand names Popeyes(R) Chicken & Biscuits, Church's Chicken(TM), Cinnabon(R) and the franchisor of Seattle's Best Coffee(R) in Hawaii, on military bases and internationally. AFC's primary objective is to be the world's Franchisor of Choice(R) by offering investment opportunities in highly recognizable brands and exceptional franchisee support systems and services. AFC Enterprises had system-wide sales of approximately $2.7 billion in 2002 and can be found on the World Wide Web at www.afce.com.
Forward-Looking Statement: Certain statements in this release, and other written or oral statements made by or on behalf of AFC or its brands are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the outcome of the ongoing audits, Audit Committee investigation and the restatement of the our financial statements, the potential delisting of our securities from the Nasdaq National Market, adverse effects of litigation or regulatory actions arising in connection with the restatement of our financial statements, the inability to attract and retain additional qualified management personnel, our ability to comply with covenants contained in our credit facility, the cost and availability of our principal food products, labor shortages or increased labor costs, our ability to franchise new units and expand our brands, our and our franchisees' ability to successfully operate existing units and open new units, changes in consumer preferences and demographic trends, competition, general economic, political and regulatory conditions and the risk factors detailed in our Annual Report on Form 10-K for the year ended December 30, 2001 and the other documents we file with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements, since those statements speak only as of the date they are made.