Louisville / KY. (pj) Papa John’s International Inc., one of the world’s largest pizza delivery companies, provided preliminary estimated comparable sales information for the month of September and the third quarter fiscal period. In light of the uncertainty related to the pandemic, the company has continued to provide this information on a monthly basis.
President and CEO Rob Lynch said, «Six consecutive months of double-digit comparable sales growth were made possible by the hard work of Papa John’s team members and franchisees during the global pandemic. We remain confident that our innovation pipeline, marketing and technology platforms, and strong operations will continue to support strong results during, and after, the pandemic.»
Preliminary Estimated Comparable Sales for September Fiscal Period and Q3-2020
Preliminary estimated comparable sales information for the five weeks and the fiscal quarter ended September 27, 2020, relative to the same periods in the prior year are as follows:
|Period 9||Third Quarter 2020|
|2020-08-24 to 2020-09-27||Q3-2020 ended 2020-09-27|
|Comparable sales growth (a)|
|Domestic company-owned restaurants||14.3%||18.2%|
|North America franchised restaurants||19.7%||25.5%|
|System-wide North America restaurants||18.4%||23.8%|
|System-wide international restaurants (b)||23.3%||20.6%|
(a)Represents the change in year-over-year sales for the same base of restaurants for the same fiscal period. Comparable sales results for restaurants operating outside of the United States are reported on a constant-Dollar basis, which excludes the impact of foreign currency translation.
(b)Includes the impact of approximately 150 temporarily closed stores as of August 23, 2020, principally in Latin America and Europe. Excluding those stores, comparable sales growth for system-wide international restaurants would have been approximately 25 percent in Period 8.
Update on Temporary Restaurant Closures as a Result of Covid-19
Of the company’s approximately 2,100 international franchised stores, approximately 90 are temporarily closed, primarily in Latin America and Europe, in accordance with government policies. In North America, almost all traditional restaurants remain open and fully operational. A number of non-traditional restaurants located in universities and stadiums are temporarily closed; these non-traditional locations are not material to the company’s revenues and operating results.
About Comparable Sales
The Company believes North America and international comparable sales growth information, as defined in the table above, is useful in analyzing its results since franchisees pay royalties and marketing fund contributions that are based on a percentage of franchise sales. Franchise sales also generate commissary revenue in the United States and in certain international markets. Franchise restaurant and comparable sales growth information is also useful for comparison to industry trends and evaluating the strength of our brand. Management believes the presentation of franchise restaurant sales growth, excluding the impact of foreign currency, provides investors with useful information regarding underlying sales trends and the impact of new unit growth without being impacted by swings in the external factor of foreign currency. Franchise restaurant sales are not included in the company’s revenues.