said its first-quarter net income increased but sales fell from last year due to discounting by competitors.
The pizza maker said its revenue fell to $245.7 million from $249.3 million a year ago. Systemwide comparable sales fell 2%, and domestic corporate restaurant sales were down 4.1% for the quarter. The company said it faced stiffer competition in the quarter and its 2002 National Anniversary Promotion was less successful in driving sales due to a higher price point than the 2001 promotion.
Operating margins were 21.9%, up from 18.9% a year ago, helping the company to increase net income to $12.9 million, or 60 cents a share, up from $12.8 million, or 56 cents a share, in the year-ago quarter. According to Thomson Financial/First Call, analysts had been expecting 57 cents a share.
Going forward, Papa John's expects to see full-year EPS in the range of $2.25 to $2.32, slightly up from the company's previous guidance of $2.22 to $2.32. Analysts polled by First Call are expecting $2.25.
Shares of Papa John's closed at $31.10 Tuesday before the earnings release.