Income before income taxes is summarized in the following table on a reporting segment basis (in thousands):
|Three Months Ended||Six Months Ended|
|June 24,||June 26,||Increase||June 24,||June 26,||Increase|
Domestic company-owned restaurants (a)
|North America franchising||16,619||16,240||379||34,759||34,249||510|
|Unallocated corporate expenses (b)||(10,025||)||(8,517||)||(1,508||)||(25,191||)||(18,286||)||(6,905||)|
Elimination of intersegment losses (profits)
|Income before income taxes||24,240||19,067||5,173||51,378||45,847||5,531|
Incentive Contribution (income) expense
Income before income taxes, excluding Incentive Contribution
(a) The six months ended June 24, 2012 includes the benefit of a $1.0 million advertising credit from the Papa John’s Marketing Fund related to the Incentive Contribution.
(b) Includes the impact of the Incentive Contribution in 2012 ($250,000 increase for the three-month period and a $4.5 million reduction for the six-month period).
The increase in income before income taxes for the three months ended June 24, 2012, of $4.9 million is primarily due to the following:
- Domestic company-owned restaurants operating income improved approximately $1.9 million primarily due to comparable sales increases as well as favorable commodity costs.
- Domestic commissaries income improved approximately $3.7 million primarily due to the increase in net units and comparable sales.
- North America Franchising and International improved due to the increase in net units and strong comparable sales results.
- These increases were slightly offset by higher unallocated corporate expenses of $1.5 million primarily due to an increase in short-term management incentive costs.
The increase in income before income taxes for the six months ended June 24, 2012, of $9.0 million is primarily due to the same reasons noted above.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV