News

Papa John’s revenues up from 2009

February 22, 2011

Papa John’s International Inc., headquartered in Louisville, Ky., has reported its fourth quarter and full-year 2010 results, including 21 percent franchise system sales growth in Q4 '10.

Revenues for the quarter were $286.8 million, representing an increase of 5.2 percent from revenues of $272.8 million for Q4 2009.

For the entire year, consolidated revenues for 2010 were $1.13 billion, representing an increase of 4.4 percent from consolidated revenues of $1.08 billion for 2009.

Net income for the fourth quarter of 2010 was $14.0 million, or $0.55 per diluted share, compared to 2009 fourth quarter net income of $13.7 million, or $0.49 per diluted share.

Net income for 2010 was $51.9 million, or $1.96 per diluted share compared to net income of $57.5 million, or $2.06 per diluted share, for 2009.

“For our system to have grown sales and transactions in 2010, in the face of unprecedented levels of competitive media spending and discounting in the pizza category, is a testament to the strength of our brand and the quality of our operators,” said John Schnatter, Papa John’s founder, chairman and co-CEO.

Additional 4th Quarter highlights

Also in the fourth quarter, Papa John’s domestic company-owned restaurant sales increased $3.5 million, or 2.8 percent, primarily due to a 2.1 percent increase in comparable sales. The increase was due to an uptick in customer traffic, partially offset by a decline in average ticket price -- as a result of increased levels of discounting -- as compared to the prior year’s fourth quarter.

Domestic commissary sales increased $8.8 million, or 8.2 percent, primarily due to an increase in sales volumes and an increase in commodities costs, substantially all of which were passed through in pricing to the restaurants.

International revenues increased $1.6 million attributable to an increase in the number of franchised international restaurants.

Additional year-end highlights

On the year, consolidated revenue increases were primarily the result of a $7.3 million franchise royalty revenue increase; a $36.8 million domestic commissary sales increase; and a $6.5 million international revenue increase.

The increases were partially offset by a $2.1 million decline in domestic other sales. Additionally, domestic company-owned restaurant sales decreased approximately $550,000 primarily due to a decrease of 0.6 percent in comparable sales for domestic company-owned restaurants for the year.

However, the Papa John’s brand continues to grow, with record global restaurant sales, including $1.9 billion for global franchised restaurants and $500 million for global company-owned restaurants, or a combined increase of 3 percent, and 177 net worldwide restaurant openings during 2010, said Jude Thompson, Papa John’s president and co-CEO.

“Our domestic operators have now posted positive transaction growth for seven consecutive quarters, and this trend has continued into 2011,” he said. “We look forward to continued growth and momentum in our international business in 2011, as well.”

A full outline of these results is available online.