News

Papa John's withdraws annual guidance, provides preliminary Q1 results

March 31, 2020

Papa John's International, Inc. today said it is withdrawing its annual financial guidance for 2020 and providing an update on the business impact of the global coronavirus pandemic, including preliminary first quarter 2020 comparable sales information.  

"First in Asia, then in Europe, and now in North and South America, we have seen the COVID-19 pandemic impact our business differently, depending on the restrictions enacted by governments," CEO Rob Lynch said in the release. "In some international markets this has resulted in temporary closures, but in most markets, including North America, we are nearly fully operational. 

"Although March sales in North America were negatively impacted by the cancellation of large gatherings, including major sporting events, our international and domestic businesses have performed well, as customers and communities rely on us and others in the food delivery industry. Our cash position is supporting our current operations, and we have access to approximately $350 million in our credit facility, should we need it. We are continuously monitoring the situation and will provide further updates on our upcoming first quarter earnings call."

The company is forcasting 5.3% systemwide comparable sales growth for the fiscal quarter ended March 29th in North America, while systemwide comparable store sales growth will be 2.3% international. 

Of the company's approximately 2,100 international franchised stores, approximately 350 are temporarily closed, principally in Ireland, Peru and the Philippines, where all stores have closed due to government policies. In China and Korea, which were impacted early by COVID-19 and where new infections have significantly declined, 15 of the company's franchise locations in China and one of the locations in Korea remain closed.

Papa John's said though it is "currently performing well," the company is withdrawing its previously provided financial outlook for fiscal 2020, due to the fluidity of the situation worldwide during the pandemic.