What Ever Happened to Popeyes Stock?

Many fast-food chains have loyal customer bases, but few can match the dedication that Popeyes Louisiana Kitchen has inspired among its frequent patrons. The chicken and Cajun-themed chain has produced impressive growth since its founding in 1972, and Popeyes stock rewarded investors for years, especially following the financial crisis. After seeing returns in excess of 2,000% between late 2008 and earlier this year, Popeyes stock disappeared from public trading following its acquisition by Restaurant Brands International (NYSE: QSR). Now, Popeyes continues as a subsidiary of Restaurant Brands, which also operates Burger King and Tim Hortons locations. Yet the story of Popeyes stock is still inspiring to investors looking for strong growth opportunities in the market.

Popeyes has existed as a company for 45 years, but its stock didn't go public until the turn of the century. Following an initial bankruptcy filing in 1991 that resulted from an overextended period of expansion during the late 1970s and 1980s, Popeyes creditors created America's Favorite Chicken Company, which was the parent of both Popeyes and chicken-chain peer Church's. America's Favorite Chicken, or AFC for short, went public in 2001, selling about 9.4 million shares of stock at $17 per share.

Popeyes' performance in the years following its IPO was mixed, but the overall trend was weak. By early 2002, Popeyes stock had doubled from its IPO level, but the shares quickly lost ground from there. By 2008, in the depths of the recession, the stock dropped below $4 per share, and many investors feared that difficult times would once more lead to dire financial consequences for the chicken company.

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Source: Fool.com