Kansas-based NPC International Inc. has reported results for its second fiscal quarter ended June 26. NPC International is the world's largest Pizza Hut franchisee and currently operates 1,200 Pizza Hut restaurants and delivery units in 28 states.

Highlights from Q2 include:

  • Comparable store sales increased 5.1 percent rolling over a decrease of 2.8 percent last year;
  • Adjusted EBITDA of $34.4MM was $10.0MM or 41 percent greater than last year;
  • Adjusted EBITDA margins expanded 300 basis points over last year; and
  • Net income of $3.0MM was $2.2MM below last year.

"We are obviously pleased to report a 41 percent increase in our second quarter adjusted EBITDA on the strength of continued strong sales momentum and impressive margin expansion which was fueled by our margin management initiatives, a softening commodities environment and excellent controls by our operators," said NPC's president and CEO Jim Schwartz.

The brand continued to promote value and bundling options during the quarter with its $10 Any Pizza carry-out promotion and the $10 Dinner Box while also leveraging the brand's Cheesy Bites Pizza and the introduction of the P'zolo. These promotions drove the comparable store sales growth.

Read more about operations management.

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