LOUISVILLE, Ky. -- Soft sales and stiff competition continue to exact their toll on sales and profits at Papa John's.

In a July 29 news release, the world's third-largest pizza company reported its July comparable-store sales fell 4.7 percent.

The company also revised its comp-store sales guidance downward for the remainder of the year to negative 4 percent to 6 percent. It had earlier predicted a drop of 2 percent to 4 percent for 2003.

Papa John's second-quarter revenues were $226.5 million, down 4.3 percent from $236.6 million for the comparable quarter in 2002.

Net income of $10.9 million represented a 12 percent drop from the comparable quarter, when net income was $12.4 million. Earnings-per-share was 60 cents, which exceeded the comparable quarter's earnings by one penny.

During the period, Papa John's opened 22 units, but closed 26.

As previously reported, domestic systemwide same-store sales for 2Q were off 4.8 percent, made up of a 4.7 percent decrease at company-owned units and a 4.8 percent decrease at franchise units.

The company cited continued weakness in the ready-to-eat pizza category and competitive pricing as reasons for the declining numbers. Increased operating costs also trimmed margins, including a 3.3 percent increase in store management-level salaries, a 1 percent advertising cost increase and a 1 percent hike in occupancy costs.

Despite the down results, Papa John's reaffirmed its 2003 earnings guidance of between $2.20 and $2.26 a share.

Related Content

User Comments – Give us your opinion!
Products & Services

Remote Service | Content Management Service

http://global.networldalliance.com/new/images/products/6685.png

6685/Remote-Service-Content-Management-Service

Dual Core Menu Board Media Player - $99

http://global.networldalliance.com/new/images/products/6677.png

6677/Dual-Core-Menu-Board-Media-Player-99

Put your menu in your customers' pocket

http://global.networldalliance.com/new/images/products/1293.png

1293/Put-your-menu-in-your-customers-pocket

POS health test: do a quick check

http://global.networldalliance.com/new/images/products/1288.png

1288/POS-health-test-do-a-quick-check

ExpressNet

http://global.networldalliance.com/new/images/products/ExpressNet_iix.gif

1428/ExpressNet

Pepperoni

http://global.networldalliance.com/new/images/products/6787.png

6787/Pepperoni

Granbury Websites

http://global.networldalliance.com/new/images/products/6815.png

6815/Granbury-Websites

Facebook Ordering

http://global.networldalliance.com/new/images/products/5935.png

5935/Facebook-Ordering

Javarama coffee

http://global.networldalliance.com/new/images/products/6961.png

6961/Javarama-coffee

Supply Chain Management

http://global.networldalliance.com/new/images/products/6405.png

6405/Supply-Chain-Management

Digital Menu Boards and ROI
Fast Casual Executive Summit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.