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Papa John’s Announces Second Quarter 2012 Results

Papa John’s International, Inc. (NASDAQ: PZZA) today announced financial results for the three and six months ended June 24, 2012.

Highlights

  • Second quarter earnings per diluted share of $0.61 in 2012, or an increase of 29.8% over earnings per diluted share of $0.47 in 2011
  • System-wide comparable sales increased 5.7% for North America and increased 6.1% for international during the quarter
  • 40 worldwide net unit openings during the quarter
  • 2012 earnings guidance raised to a range of $2.45 to $2.55; comparable sales guidance raised for both North America (updated guidance range of +2% to +3%) and International (updated guidance range of +4.0% to +5.5%)

“We had an outstanding second quarter as our system continued its strong sales momentum with significant comparable sales increases for our North American and International operations,” said Papa John’s founder, chairman, and chief executive officer, John Schnatter. “We continue to win with consumers, as we recently were recognized with Brand of the Year honors in the Pizza Chain Category of the 2012 Harris Poll EquiTrend Study, and we achieved the highest rating ever by an individual brand in the Limited Service Restaurant Category of the 2012 American Customer Satisfaction Index (ACSI).”

Second quarter 2012 revenues were $318.6 million, an 8.5% increase from second quarter 2011 revenues of $293.5 million. Second quarter 2012 net income was $14.8 million compared to second quarter 2011 net income of $12.1 million. Second quarter 2012 diluted earnings per share were $0.61, compared to second quarter 2011 diluted earnings per share of $0.47.

Revenues were $649.9 million for the six months ended June 24, 2012, a 7.2% increase from revenues of $606.0 million for the same period in 2011. Net income was $31.5 million ($33.8 million excluding the $2.3 million Incentive Contribution discussed later in this press release) for the six months ended June 24, 2012, compared to net income of $28.6 million for the same period in 2011. Diluted earnings per share were $1.30 ($1.39 excluding the Incentive Contribution) for the six months ended June 24, 2012, compared to $1.11 in the prior year.

Global Restaurant and Comparable Sales Information

 
  Three Months Ended   Six Months Ended

June 24,

2012

 

June 26,

2011

June 24,

2012

 

June 26,

2011

 
Global restaurant sales growth (a) 9.8 % 5.6 % 7.9 % 8.3 %
 

Global restaurant sales growth, excluding the impact of foreign currency (a)

10.4 % 4.8 % 8.3 % 7.8 %
 
Comparable sales growth (b)
Domestic company-owned restaurants 7.4 % 2.1 % 5.1 % 4.4 %
North America franchised restaurants 5.1 % (0.1 %) 2.7 % 2.9 %
System-wide North America restaurants 5.7 % 0.4 % 3.3 % 3.3 %
 
System-wide international restaurants 6.1 % 4.8 % 7.2 % 5.2 %
 

(a) Includes both company-owned and franchised restaurant sales.

 

(b) Represents the change in year-over-year sales for the same base of restaurants for the same fiscal periods. Comparable sales results for restaurants operating outside of the United States are reported on a constant dollar basis, which excludes the impact of foreign currency conversion.

 

Management believes global restaurant and comparable sales information, as defined in the table above, is useful in analyzing our results since our franchisees pay royalties that are based on a percentage of franchise sales. Franchise sales generate commissary revenue in the United States and in certain international markets. Global restaurant and comparable sales information is also useful in analyzing industry trends and the strength of our brand. Franchise restaurant sales are not included in company revenues.

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