News

Papa John's closed international stores in Q2 2010

August 3, 2010

Papa John's International Inc. announced the results of its 2010 second quarter ended June 27, with a mixed bag of international sales growth, but sizeable closings.

Domestic system-wide comparable sales increased 0.4 percent for the second quarter. International franchise system sales increased 12 percent for the second quarter. However, the company had some trouble with closings worldwide: In Q2 2010, Papa John's closed 32 international franchised restaurants, including all of the 25 franchised restaurants in one undisclosed country, and opened 28 (mostly franchised) stores. For the entire year, the concept saw 43 international restaurants closed and 57 (mostly franchised) opened.

Still, international franchise system sales increased approximately 12 percent to $71.8 million in the second quarter of 2010, up from $63.9 million in the comparable period in 2009, and increased approximately 14 percent to $139.5 million for the six months ended June 27, 2010, up from $122 million.

Net income for the second quarter of 2010 was $13.2 million (including after-tax income of $1.7 million from the consolidation of the results of the franchisee-owned cheese purchasing company, BIBP Commodities Inc.), compared to 2009 second quarter net income of $14.2 million (including after-tax income of $4.2 million from the consolidation of BIBP), an almost 7 percent decrease. (Net income excluding BIBP was $11.5 million, up from roughly 10 million in the corresponding 2009 quarter.)  Year-to-date, net income as reported fell to $30 million, down from $32 million for the same period in 2009.

Revenues were $280.6 million for the second quarter of 2010, representing an increase of 4.5 percent from revenues of $268.5 million for the second quarter of 2009. Year-to-date, revenues rose to $566 million, from $549 million in the corresponding period in 2009.