LOUISVILLE - Revenue and net income both decreased slightly for Papa John's International Inc. (NASDAQ:PZZA) during the second quarter, ending June 30, the company announced on July 30. But the company positively revised its earnings-per-share estimates for fiscal year 2002.
The company announced net income of $12.34 million during the quarter, down 1 percent from the $12.51 million in income during the same quarter in 2001. Revenue dropped 1.6 percent, from $240.4 million to $236.6 million.
For the six months ending June 30, net income is down marginally, from $25.27 million to $25.26 million, while revenue dropped from $489.7 million to $482.2 million, a decrease of 1.5 percent.
Despite the slight drop in net income, diluted earnings per share for the second quarter rose from 55 cents per share in 2001 to 59 cents this year. Papa John's had predicted earnings of between 56 cents and 58 cents for the quarter.
The company previously announced that earnings per share for 2002 would range between $2.25 and $2.32 per share. Based on second-quarter results, the company has revised its estimated range to between $2.28 and $2.33.
During the second quarter, domestic comparable sales increased 0.2 percent, including a 2.3 percent increase at company-owned stores and a 0.5 percent decrease at franchised restaurants. Company officials credited a summer promotion and the timing of the East holiday for the favorable sales results.
A total of 35 restaurants opened during the quarter, three company-owned, 30 franchised locations, and two franchised Perfect Pizza restaurants. Conversely, 26 restaurants (three company-owned, 20 franchised, and three Perfect Pizza locations) closed. As of June 30, the company said there were 2,763 Papa John's restaurants (596 company owned and 2,167 franchised) internationally and 171 Perfect Pizza restaurants in the UK.
Shares in Papa John's were up 30 cents, to 31.49, during early trading on July 31.