News

Papa John's to split stock, sees FY '06 comps increase

December 7, 2005

LOUISVILLE, Ky. — Riding its highest stock price ever ($58 per share), Papa John's International announced it will split its shares two-for-one on Dec. 23, and broaden its company share repurchase option from $500 million to $525 million.

According a news release, the split will be effected in the form of a 100 percent stock dividend.

Also in the release, Papa John's predicted its domestic system-wide comparable-store sales will increase 2 percent to 3 percent in 2006. Total sales growth for international Papa John's branded units is expected to range from 30 percent to 35 percent. It did not forecast sales for its struggling 110-unit Perfect Pizza chain in the United Kingdom.

The company plans to open between 210 and 240 new units next year, while closing between 70 and 100. New openings will be divided evenly between domestic and international locations. Approximately 20 percent of domestic openings are expected to be company-owned units, while substantially all international openings will be franchise units. The majority of unit closings are expected to be U.S. franchise units.