Operations

Papa John’s expects solid start for Q4

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November 3, 2022

Papa John's International Inc. saw total revenues of $511 million in Q3, a dip of $2 million, or less than 1%, compared to a year ago with North American comparables sales down less than 1% from 2021 and up 30% on a three-year stack.

Global systemwide restaurant sales were $1.2 billion, a 0.5% increase over last year's Q3, according to a press release.

The Q3 financial results reveal the pizza franchise weathered several challenges, from labor to food costs, according to President and CEO Rob Lynch.

"Although the third quarter is typically the slowest period for pizza delivery, this year was especially challenging as the demand for travel was amplified coming out of the pandemic. In addition, commodity and labor costs reached all-time highs, impacting profit. These are all short-term challenges that we navigated well and I am pleased to say we are off to a solid start in the fourth quarter," Lynch said in the release.

The brand is confident in its multi-year development outlook and is "well positioned" to drive growth in the long term, according to Lynch, given the 30% three-year stacked growth.

The brand had 18 net unit openings in Q3, mostly in international markets and expects to open between 240 to 260 this year.

Consolidated total revenues of $510.5 million decreased $2.3 million, or 0.4%, in the third quarter of 2022 compared with the prior year. Diluted earnings per share was $0.23 for the third quarter of 2022 compared with $0.79 in the third quarter of 2021.