Papa Johns announces Q2 results
Papa John's International Inc. today announced revenues of $293.5 million for second quarter 2011, a 4.6 percent increase from revenues of $280.6 million for second quarter 2010. Net income was $12.1 million for second quarter 2011, or $0.47 per diluted share, compared to $13.2 million for second quarter 2010, or $0.49 per diluted share.
Revenues were $606.0 million for the six months ended June 26, a 7 percent increase from revenues of $566.4 million for the same period in 2010. Net income was $28.6 million for the six months ended June 26, or $1.11 per diluted share, compared to net income of $30.1 million for the same period in 2010, or $1.11 per diluted share ($26.2 million, or $0.97 per diluted share, excluding BIBP, an increase of $2.4 million).
"We are pleased with our solid second quarter results," said Papa John's Founder, Chairman and Chief Executive Officer, John Schnatter. "Even in the face of what continues to be a challenging commodity cost and competitive environment, the Papa John's system ran positive comp sales in both North America and our international business while adding 46 net new restaurants during the quarter. These results are a testament to the strength of our brand and our operators."
At June 26, there were 3,733 Papa John's restaurants operating in all 50 states and in 32 countries.
Share repurchase activity
The company repurchased 674,000 shares of its common stock at an average price of $32.69 per share, or a total of $22.0 million, during the three months ended June 26, and repurchased 817,000 shares at an average price of $32.02 per share, or a total of $26.2 million during the six months ended June 26. Subsequent to quarter-end through July 27, the company repurchased 114,000 shares at a total cost of $3.7 million, or $31.92 per share average cost. Approximately $57.0 million remains available under the company's share repurchase program.
There were 25.7 million diluted weighted average shares outstanding for both the three- and six-month periods, representing decreases of 4.8 and 4.9 percent, respectively, over the prior-year comparable periods. Diluted earnings per share increased $0.02 and $0.05 for the three- and six-month periods, respectively, due to the reductions in shares outstanding. About 25.2 million actual shares of the company's common stock were outstanding as of June 26.
2011 earnings guidance
The company reaffirmed its previously issued diluted earnings per share guidance range of $2.02 to $2.12 for 2011. It also reaffirmed its previously issued comparable sales guidance range of +2 to 3 percent for North America and increased the International comp sales guidance to +2 to 4 percent from +1 to 3 percent. The company also reaffirmed projected worldwide net restaurant openings of 190 to 220 restaurants for 2011.
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