Popeyes had its worst quarter in about 20 years to start 2026, with same-store sales down 6.5% and systemwide sales down by 3.9%.
The numbers build on a negative 2025 in which systemwide sales declined by 0.5%, including four consecutive quarters of negative same-store sales, ending the year with -2% in Q3 and -4.9% in Q4.
But executives at parent company Restaurant Brands International are far from worried.
“While results were softer than we’d like to see, we have a clear understanding of the underlying drivers and are moving quickly to address them,” RBI CEO Josh Kobza said during the company’s earnings call Wednesday.
Popeyes is focused on three pillars laid out during RBI’s investor day earlier this year by Peter Perdue, who was named president of the chain in the fall to lead a turnaround plan. The pillars include improving restaurant operations and service, narrowing the menu to focus on core offerings, and providing more consistent everyday value.
“During our franchisee roadshows in April, we brought these priorities together into a clear, actionable framework, which was met with strong alignment from our franchise operators to improve execution,” Kobza said.
Popeyes has increased field support, for example, to ramp up shoulder-to-shoulder training in restaurants. The company also held its inaugural restaurant general manager “guest experience rallies” across about 20 markets throughout the past two months to outline interactive training opportunities. Kobza said this early work has already shown signs of improvements in product satisfaction and operational metrics.
On the menu, Popeyes is “tightening its focus” toward its signature bone-in chicken, sandwiches and tenders to support better execution. This is a shift from the past two years in which the chain picked up its menu launch pace with promotions such as a Freddy Fazbear Crunch Menu, a Hot Ones menu, wraps, a pickle menu, Chicken Dippers, and a limited-edition menu for the Super Bowl in partnership with Tequila Don Julio.
Sharpening its focus on core offerings allows the company to not only improve operational metrics, but also ensure marketing is “working harder behind fewer, stronger bets,” Kobza said. One of those bets will also be a rebuild of Popeyes’ everyday value offerings. In January, the chain launched a $5 Faves Menu with four meal bundles.
“We're already seeing signs of underlying improvement in value scores. We'll continue to evolve this platform while exploring additional offerings for group occasions,” Kobza said.
Perdue previously served as chief operating officer of sibling chain Burger King, where he drove significant improvements (Burger King’s Q1 same-store sales were up 5.8%) and RBI is betting he can translate that same success to the chicken chain. Kobza said he expects Popeyes to return to positive comps in the second half of 2026.
A turnaround amid intensifying competition
That said, a turnaround won’t be easy as competition in the chicken category continues to intensify. According to Technomic data, the total number of chicken chain locations has surged by 46% over the last decade, reflecting a net increase of nearly 6,200 units. Further, several non-chicken chains have stepped up their chicken offerings in the past year or two, including McDonald’s, Wendy’s, Culver’s, Chili’s and Taco Bell.
Again, RBI executives aren’t showing signs of concern.
“We are super happy to be in the chicken category. The reason we (acquired) Popeyes nine years ago is that we knew there was going to be huge secular growth in the chicken category in the U.S. and around the world,” Kobza said. “That's exactly what's happened. When you have a great category like that, you're going to have competition.”
He added that tenders and sandwich upgrades across the industry are good for Popeyes because it pushes the company to improve as well.
“That’s a healthy tension,” he said.
Indeed, Popeyes is “moving fast” to keep pace. Its upgraded tenders, for example, are now rolled out to one-third of the system, with a full rollout expected by June.
“Progress on operations and delivery of product quality (is) what’s going to lead to a turnaround in the business and help us to be more successful,” Kobza said.
RBI Executive Chairman Patrick Doyle added that Popeyes “knows how to win” in the category.
“We've got the best food in the category, and our execution is already improving. It needed to be better than it was, and we needed consistent value, and Peter and his team and the franchisees are all over it,” he said. “They believe in that as the path.”
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