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Papa Johns Announces First Quarter 2023 Financial Results<\/b><\/p>\n LOUISVILLE, Ky.–(BUSINESS WIRE<\/a>)– Highlights<\/span><\/b><\/p>\n \n\u201cWe delivered another solid quarter, achieving the highest system-wide sales in Company history through strong performing innovation and continued strength of company operations,\u201d said Rob Lynch, Papa Johns\u2019 president and CEO. \u201cCustomers are responding favorably to our marketing and menu innovation strategy and our teams are doing an excellent job executing our Back to BETTER initiative. In our corporate-owned restaurants, our teams are delivering significant improvements in out-the-door times, increasing overall customer satisfaction, and driving operational efficiencies and profitability, which is helping to offset continued wage inflation. The Company-owned restaurant comp sales growth of more than 3% in the first quarter is a testament to the strength of our product offerings and the operational improvements our team is making.\u201d<\/p>\n \nPapa Johns recently announced its latest menu innovation, Doritos\u00ae Cool Ranch\u00ae Papadia. Commenting on the new offering that launches nationwide today, Lynch stated, \u201cOur recent collaboration with the teams at Pepsi and Frito Lay inspired our newest proprietary menu offering, Doritos\u00ae Cool Ranch\u00ae Papadia. This new offering is covered with bold Doritos\u00ae Cool Ranch\u00ae seasoning and includes Doritos\u00ae Cool Ranch\u00ae flavored dipping sauce only available at Papa Johns. We are thrilled to roll out our steak, chicken, and ground beef options nationwide beginning today.\u201d<\/p>\n \n\u201cOn the development front, we are very excited about our recently announced expanded partnership with PJP Investments to open 650 new restaurants in India by 2033,\u201d added Lynch. \u201cThis agreement is another great example of the vast white space development opportunities available to us globally and the quality of the franchisees that are investing in our future. Papa Johns remains a sought-after brand both domestically and internationally driven by the strong underlying long-term fundamentals of our franchisee model, and attractive franchisee payback and unit economics. We continue on our path to achieve our long-term unit growth targets as we execute our plan to build the world\u2019s best pizza company.\u201d<\/p>\n (a)<\/sup><\/p>\n<\/td>\n \nExcludes the impact of foreign currency and previously disclosed franchisee suspended restaurants.<\/p>\n<\/td>\n<\/tr>\n (b)<\/sup><\/p>\n<\/td>\n \nRepresents a non-GAAP financial measure. See \u201cNon-GAAP Measures\u201d for a reconciliation to the most comparable US GAAP measure.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Financial Highlights<\/span><\/b><\/p>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n (In thousands, except per share amounts)<\/i><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n March 26, \n\u00a0<\/p>\n<\/td>\n March 27, \n\u00a0<\/p>\n<\/td>\n Increase (Decrease)<\/b><\/p>\n<\/td>\n<\/tr>\n \nTotal revenues<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n527,049<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n542,692<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(15,643<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nOperating income<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n37,796<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n14,435<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n23,361<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAdjusted operating income (a)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n39,152<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n45,231<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(6,079<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nNet income attributable to the Company<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n22,376<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n10,494<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n11,882<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nDiluted earnings per common share<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.65<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.29<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.36<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAdjusted diluted earnings per common share (a)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.68<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.95<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.27<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nTotal revenues of $527.0 million decreased $15.6 million, or 2.9%, in the first quarter of 2023 compared with the prior year period. Excluding the impact of refranchising 90 restaurants in the second quarter of 2022, total revenues increased $2.2 million, or 0.4%. The higher total revenue was primarily driven by comparable sales growth from Domestic Company-owned restaurants, which was partially offset by lower revenue in the North American commissary and lower comparable sales in the UK market.<\/p>\n \nFor the first quarter of 2023, global system-wide restaurant sales were $1.24 billion, up 2.0% from a year ago (excluding the impact of foreign currency and previously disclosed franchisee suspended restaurants). The increase reflected higher equivalent units from net restaurant openings primarily in International markets.<\/p>\n \nOperating income of $37.8 million for the first quarter of 2023 increased $23.4 million compared with the first quarter last year, primarily due to the impact of $30.8 million in certain charges incurred in the first quarter of 2022 ($17.4 million related to the conflict in Ukraine, $8.4 million related to a refranchising transaction and $5.0 million from legal settlements). Adjusted operating income(a) <\/sup>was $39.2 million, down $6.1 million from the prior year comparable period. The decrease in adjusted operating income was driven by higher costs in 2023 resulting from commodity and wage inflation and reduced International operating income primarily in the UK. These decreases were partially offset by increased revenues from Domestic Company-owned restaurants.<\/p>\n \nDiluted earnings per common share was $0.65 for the first quarter of 2023 compared with $0.29 in the first quarter of 2022. Adjusted diluted earnings per common share(a)<\/sup> was $0.68 for the first quarter of 2023 compared with $0.95 in the first quarter of 2022. These changes were driven by the same factors impacting operating income and adjusted operating income as discussed above. In addition, diluted earnings per common share and adjusted diluted earnings per common share reflected higher interest expense compared with the first quarter of 2022. Interest expense increased in the first quarter of 2023 largely due to higher borrowings used to fund share repurchases.<\/p>\n \nSee the Management\u2019s Discussion and Analysis of Financial Condition and Results of Operations section of our Quarterly Report on Form 10-Q filed with the SEC for additional information concerning our operating results for the three months ended March 26, 2023.<\/p>\n\n
\nPapa John\u2019s International, Inc. (NASDAQ: PZZA)(\u201cPapa Johns\u00ae<\/sup>\u201d) today announced financial results for the first quarter ended March 26, 2023.<\/p>\n\n
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