Operations

Papa John's sales, profit beats expectations

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February 24, 2022

Papa John's fourth quarter revenue and profit beat expectations, according to a company earnings report.

Net income rose to $24.6 million, or 67 cents a share, from $13.2 million, or 28 cents a share.

Fourth quarter 2021 highlights compared to 2020 fourth quarter included:

• Total company revenues of $528.9 million, up 12.6% over 2020.
• Comparable sales up 11.1% in North America and 2.4% Internationally; Global system-wide restaurant sales of $1.2 billion, up 13.1% from 2020 (excluding the impact of foreign currency).
• Earnings per diluted share grew 139% to $0.67; Adjusted earnings per diluted share grew 88% to $0.75.
• Repurchased $52 million of common stock during the fourth quarter, completing the previous $75 million share repurchase authorization.

Full year 2021 highlights compared to prior year

• Total company revenues of $2.1 billion, up 14.1% over 2020.
• Comparable sales up by 11.8% in North America and 13.0% Internationally; Global system-wide restaurant sales of $4.8 billion, up 15.4% from 2020 (excluding the impact of foreign currency).
• 250 net unit openings driven by continued domestic and international growth.
• Earnings per diluted share of $0.12, including special items of $3.39 per share, largely related to repurchase and conversion of Series B Convertible Preferred Stock.
• Adjusted earnings per diluted share grew to $3.51 from $1.40 in 2020.
• Cash flow from operations of $184.7 million and free cash flow of $109.7 million for full year 2021.

"In 2021 Papa Johns achieved strong comparable sales growth and industry outperformance for a second consecutive year, driving 15% systemwide sales gains and demonstrating our ability to sustain growth, even during one of the most uncertain and difficult business environments we have ever seen," Rob Lynch, president and CEO, said in a press release. "On a two-year basis, comparable sales rose 29% inNorth Americaand 26% internationally last quarter, as our innovation culture continued to deliver high-value, premium products that customers love, such as Epic Stuffed Crust and New York Style pizza. WithNorth Americaaverage annual unit sales exceeding$1.1 millionand 2021 adjusted EPS of$3.51, a company record, I'm proud to say that we also delivered great value to our franchisees and shareholders."