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Papa Johns Announces Second Quarter 2025 Financial Results<\/b><\/p>\n
North America Comparable Sales Increased 1%; International Comparable Sales Increased 4% LOUISVILLE, Ky.–(BUSINESS WIRE<\/a>)– Highlights<\/span><\/i><\/b><\/p>\n CEO Commentary<\/span><\/i><\/b><\/p>\n \n\u201cPapa Johns second quarter results exceeded our expectations and are evidence that our strategy is working. We returned to comparable sales growth in North America and achieved strong sales growth internationally, driven by transaction gains as we win more customer visits with a focus on our core pizza business,\u201d said Todd Penegor, President and CEO.<\/p>\n \n\u201cOur progress in the second quarter reinforces my confidence that we are on the right track to deliver significant, sustainable profitable growth and increased value for all Papa Johns stakeholders,\u201d Penegor added.<\/p>\n (a) <\/sup>Represents a Non-GAAP financial measure. See \u201cNon-GAAP Financial Measures\u201d for a reconciliation to the most comparable U.S. GAAP measures.<\/p>\n<\/td>\n<\/tr>\n (b) <\/sup>Growth rate excludes the impact of foreign currency.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Financial Highlights<\/span><\/i><\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Three Months Ended<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Six Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n \n(In thousands, except per share amounts)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n June 29, \n\u00a0<\/p>\n<\/td>\n June 30, \n\u00a0<\/p>\n<\/td>\n Increase (Decrease)<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n June 29, \n\u00a0<\/p>\n<\/td>\n June 30, \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$<\/p>\n<\/td>\n \n529,166<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n507,894<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n21,272<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,047,475<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,021,810<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n25,665<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nNet income<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n9,671<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n12,536<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(2,865<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n19,014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n27,450<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(8,436<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA(a)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n52,615<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n58,920<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(6,305<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n102,239<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n119,485<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(17,246<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nDiluted earnings per common share<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.28<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.37<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.09<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.56<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.82<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.26<\/p>\n<\/td>\n \n)<\/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$<\/p>\n<\/td>\n \n0.41<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.61<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.20<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.77<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1.28<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.51<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nResults for the three and six months of 2025 are not directly comparable with the three and six months of 2024, as year-over-year comparisons are impacted by the UK restaurant closures and refranchising transactions that occurred in the second and third quarters of 2024.<\/p>\n Second Quarter 2025 Results<\/span><\/i><\/b><\/p>\n Revenue:<\/span><\/b> Total revenues of $529.2 million increased $21.3 million, or 4.2%, in the second quarter of 2025 compared with the prior year period. The higher revenues were largely attributable to a $20.3 million increase in Commissary revenues, reflecting both higher volumes and pricing during the quarter. Also contributing to the higher revenues, but to a lesser extent, was a $2.7 million increase in Other revenues, primarily reflecting higher digital fees, a $2.2 million increase in Advertising funds revenues, primarily driven by higher advertising contribution rates in certain International markets, and a $1.8 million increase in Franchise royalties and fees, driven by higher comparable sales and global restaurant growth on a trailing twelve-month basis.<\/p>\n \nThe above revenue increases were partially offset by a $5.7 million decrease in Company-owned restaurant revenues, largely attributable to a decrease of $8.2 million in revenues from our International Company-owned restaurants, primarily related to lower revenues from our Company-owned restaurants in the UK, as 105 formerly Company-owned restaurants were refranchised or closed prior to the second quarter of 2025. The decline was partially offset by a $2.6 million increase at our Domestic Company-owned restaurants primarily due to comparable sales growth as a result of higher average ticket, slightly offset by the refranchising of 15 restaurants in the prior year.<\/p>\n System-wide sales:<\/span><\/b> For the second quarter of 2025, Global system-wide restaurant sales were $1.26 billion, up 4%(b)<\/sup> compared with the prior year second quarter, driven by higher North America and International comparable sales and 2% global net restaurant growth on a trailing twelve-month basis. North America system-wide sales increased 3%(b)<\/sup> to $928 million and International system-wide sales increased 7%(b)<\/sup> to $328 million in the second quarter of 2025, compared with the prior year period.<\/p>\n Net income:<\/span><\/b> Second quarter Net income was $9.7 million, a $2.9 million decrease compared with the prior year second quarter, as higher revenues were more than offset by higher G&A expenses related to incremental investments in marketing and our loyalty program as well as a $3.7 million increase from higher incentive compensation under the Company\u2019s Management Incentive Plan as well as higher cost of sales driven by higher food and labor costs at the Company-owned restaurants. In addition, Net income reflects slightly lower interest expense driven by lower average interest rates during the quarter and slightly lower tax expense, due to lower pre-tax income, compared with the second quarter of 2024.<\/p>\n Adjusted EBITDA:<\/span><\/b> Adjusted EBITDA(a)<\/sup> was $52.6 million, a $6.3 million decrease from the prior year second quarter. The decrease was primarily attributable to higher revenues more than offset by higher G&A expenses largely related to incremental investments in marketing and the Company\u2019s loyalty program along with higher incentive compensation under the Company\u2019s Management Incentive Plan, as well as higher operating costs at the Company-owned restaurants.<\/p>\n \nThe variance between Net income and adjusted EBITDA was primarily due to non-GAAP adjustments of $4 million of stock-based compensation, $2 million of International restructuring costs in the UK, and approximately $3 million associated with losses on disposal of equipment in connection with the termination of a COVID-era equipment program, compared with the prior year second quarter.<\/p>\n Earnings per share:<\/span><\/b> Diluted earnings per common share was $0.28 for the second quarter of 2025 compared with $0.37 in the second quarter of 2024. Adjusted diluted earnings per common share(a)<\/sup> was $0.41 for the second quarter of 2025 compared with $0.61 in the second quarter of 2024. These changes were driven by the same factors impacting Net income and adjusted EBITDA(a)<\/sup> as discussed above.<\/p>\n \nRefer to 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 and six months ended June 29, 2025.<\/p>\n
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<\/i>Diluted EPS of $0.28; Adjusted Diluted EPS of $0.41(a)
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<\/sup><\/i>Updates Fiscal 2025 Outlook to Raise International Comparable Sales Range<\/i><\/p>\n
\nPapa John\u2019s International, Inc. (Nasdaq: PZZA)(\u201cPapa Johns\u00ae<\/sup>\u201d) (the \u201cCompany\u201d) today announced financial results for the second quarter ended June 29, 2025.<\/p>\n\n
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