KeyBanc Popeye’s Sold Around 1,000 Chicken Sandwiches Per Retailer a Day as Store Traffic Doubled analysts expect the fast-food – Popeye’s chicken restaurant offered about 1,000 chicken sandwiches per retailer a day. Sandwich sales additionally accounted for about 30% of Popeye’s sales within the time it was obtainable, whereas store traffic doubled, the analyst mentioned, citing proprietary tracking data. For that reason, the agency is bullish on the parent firm, Restaurant Brands International, and raised its earnings estimates.
The gross sales boom received its spark after a Twitter feud with Chick-fil-A in August led consumers to try the brand new sandwich. The chicken sandwich’s considerable reputation also sent ripples by the fast-food trade as Popeyes identical-retailer gross sales skyrocketed.
Analyst Eric Gonzalez mentioned – Unbeknownst to on time, the launch of a new hen sandwich at Popeye’s and subsequent twitter debate could be a viral response that will disorder the fast food industry and sure form the result of 3Q19 outcomes for among the category’s most significant players.
On Aug. 12 Popeyes officially launched its chicken sandwich, but it wasn’t till a week following that the fast-food chain’s new product gained recognization.
KeyBanc’s Gonzalez raised his same-store sales assessment for Popeyes to 8% from 2%, noting that estimate could also be “conservative” because the chain maintained its newly discovered momentum after the promote-out. The Popeyes chicken-sandwich notoriety additionally limits upside to McDonald’s same-store sales and played “spoiler” to Burger King’s Inconceivable Burger launch and Wendy’s’ Spicy Chicken Nuggets promotion, the analyst added.
Gonzalez has a rating on Restaurant Brands International, the parent company of Popeyes. His price goal of $85 per share indicates a 12.5% upside from Friday’s close of $75.55.