However, the chain, which had to close 280 restaurantsbecause of the hurricanes, is actually showingimproved financial performance, according to AFCEnterprises CEO Kenneth Keymer. "We're very pleasedwith the momentum," he said during the company's thirdquarter earnings conference call. Even though thecompany missed Wall Street estimates, the thirdquarter 2005 income was an increase from a net loss of$2.3 million, or 8 cents per diluted share, forthe third quarter 2004. Moreover, during the thirdquarter, system-wide sales increased 2.8%, and totaldomestic same-store sales were up 2.3%.

Hurricanes Katrina and Rita cost the chain $1 millionin lost revenues, employee assistance and donations,according to Keymer. At the end of the third quarter,35 Popeye's restaurants remained closed, and only fiveare expected to open before the end of the year. Forthe third quarter, total revenues decreased 18.1% to$31.2 million from $38.1 million, primarily becausecompany-operated restaurant revenue declined by $7.3million.

During the first three quarters of 2005, therestaurant chain added 80 new units, bringing thetotal to 1,772 at the end of the third quarter 2005 inthe United States, Puerto Rico, Guam and 25 foreigncountries including Canada. AFC Enterprises expects toend the year with 115 to 125 restaurant openings and70 to 80 restaurant closings.