Papa John’s: Announces Q1-2023 Financial Results

Louisville / KY. (pj) Papa John’s International Inc., one of the world’s largest pizza delivery companies, announced financial results for the first quarter ended March 26, 2023. Highlights:

  • North America comparable sales were flat lapping last year’s record first quarter sales as menu innovation and operational efficiencies drove 3 percent growth in Domestic Company-owned Restaurants; International comparable sales were down 6 percent from a year ago primarily due to continued economic pressure in the UK.
  • 27 net unit openings in the first quarter driven by International growth; On track to achieve 270 to 310 net new units in 2023.
  • Global system-wide restaurant sales were USD 1.24 billion, a 2 percent increase from the prior year first quarter.
  • Total revenues of USD 527 million were down 3 percent from a record first quarter a year ago. Revenues were up slightly when excluding the impact of refranchising 90 restaurants in 2022.
  • Diluted earnings per common share was USD 0.65, compared with USD 0.29 for the first quarter of 2022; Adjusted diluted earnings per common share was USD 0.68, compared with USD 0.95 for the first quarter a year ago.

«We delivered another solid quarter, achieving the highest system-wide sales in Company history through strong performing innovation and continued strength of company operations,» said Rob Lynch, Papa Johns’ president and CEO. «Customers are responding favorably to our marketing and menu innovation strategy and our teams are doing an excellent job executing our Back to BETTER initiative. In our corporate-owned restaurants, our teams are delivering significant improvements in out-the-door times, increasing overall customer satisfaction, and driving operational efficiencies and profitability, which is helping to offset continued wage inflation. The Company-owned restaurant comp sales growth of more than 3 percent in the first quarter is a testament to the strength of our product offerings and the operational improvements our team is making.»

Papa Johns recently announced its latest menu innovation, «Doritos» «Cool Ranch» Papadia. Commenting on the new offering that launches nationwide, Lynch stated, «Our recent collaboration with the teams at Pepsi and Frito Lay inspired our newest proprietary menu offering. This new offering is covered with bold «Doritos» «Cool Ranch» seasoning and includes «Doritos» «Cool Ranch» flavored dipping sauce only available at Papa Johns. We are thrilled to roll out our steak, chicken, and ground beef options nationwide beginning immediately.»

«On the development front, we are very excited about our recently announced expanded partnership with PJP Investments to open 650 new restaurants in India by 2033,» added Lynch. «This agreement is another great example of the vast white space development opportunities available to us globally and the quality of the franchisees that are investing in our future. Papa Johns remains a sought-after brand both domestically and internationally driven by the strong underlying long-term fundamentals of our franchisee model, and attractive franchisee payback and unit economics. We continue on our path to achieve our long-term unit growth targets as we execute our plan to build the world’s best pizza company.»

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