AFC Tells of Formal Investigation by SEC

AFC Enterprises Inc., the owner of Popeyes Chicken & Biscuits restaurants, said the Securities and Exchange Commission has authorized a formal investigation into the company’s financial restatements.

Regulators had started an informal inquiry in April 2003, Atlanta-based AFC said.

On March 24, 2003, AFC said it would restate earnings for 2001 and for the first three quarters of 2002.

A month later, it said it would also restate results for 2000.

Last year, AFC sued its former accounting firm Arthur Andersen, blaming it for the restatements.