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Papa John's International Inc. has announced its projections for 2011, including a 16 percent increase in earnings per share and a global systemwide sales increase of 25 percent to 30 percent.
The 2011 estimate does not include the impact of the chain's franchisee-owned cheese purchasing company, BIBP Commodities Inc.
The projections highlighted include:
The company also is realigning management responsibility for Hawaii, Alaska and Canada from International to the domestic operations team in order to better leverage existing infrastructure and systems. The realignment is expected to shift approximately $1.4 million of operating income from the International business segment to the North America Franchising business segment in 2011.
Significant 2011 operational assumptions
Total consolidated revenues are expected to increase 4 percent to 5 percent in 2011, due primarily to projected North America and International net unit and comparable sales growth, an increase in the domestic royalty rate and anticipated commodity cost increases.
Meanwhile, capital expenditures are expected to be approximately $35 to $40 million, which includes $6 million to $8 million for re-image costs at company-owned restaurants in connection with a domestic systemwide re-image program. Additionally, approximately $6 million to $7 million is related to new company-owned unit development in the U.S. and Beijing. The remainder of the capital expenditures is expected to consist of routine capital replacement and certain technology-related projects.
Papa John's will host its 2011 annual meeting of stockholders April 28, 2011, at the company's corporate offices in Louisville, Ky.
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