Long Position on AFCE @ $26.24 on 10/18/2012 (Rumor)

AFC Enterprises (AFCE) develops, operates, and franchises quick-service restaurants (QSRs or restaurants) under the trade names Popeyes Chicken & Biscuits and Popeyes Louisiana Kitchen (collectively Popeyes).

Within Popeyes, it manages two business segments: franchise operations and company-operated restaurants. Within the QSR industry, Popeyes distinguishes itself with a Louisiana style menu, which features spicy chicken, chicken sandwiches, chicken tenders, fried shrimp and other seafood, red beans and rice and other regional items.

The Company operates and franchises 2,035 Popeyes restaurants in 45 states, the District of Columbia, Puerto Rico, Guam, the Cayman Islands and 25 foreign countries. Its 1,587 domestic franchised restaurants, approximately 70% are concentrated in Texas, California, Louisiana, Florida, Illinois, Maryland, New York, Georgia, Virginia and Mississippi. 

Shares have formed a bullish "cup & handle" and are expected to move higher out of this formation. 

We are now hearing rumors of good news for this company. One of the rumors states that this stock will be named by the leading stock advisory service as one of its "top picks." This service is widely followed by mutual funds and institutional money managers. These investors have portfolios that mimic recommendations of this service. Their naming of the stock should lead to additional demand for the shares.

52-Week Trading Range:  $12.53 - $26.79

Last Trade:  $26.24

Stop Loss:  $24.95

Target Price:  $28.90

Position closed on 11/21/2012 at price of $25.50 with a -2.82% loss in 34 days.

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