Earnings Guidance Increased;
Two-for-One Stock Split Declared
Papa John's International, Inc. (NASDAQ: PZZA) today announced financial results for the three and nine months ended September 29, 2013.
Highlights
• Third quarter diluted earnings per share of $0.65 in 2013 compared to $0.55 in 2012, an increase of 18%
• System-wide comparable sales increases of 1.8% for North America and 8.1% for international during the quarter
• 2013 diluted earnings per share guidance increased to a range of $3.02 to $3.10
• 2013 guidance increased for North America comparable sales, international comparable sales, and worldwide net unit openings
"I'd like to congratulate our operators on yet another solid quarter," said Papa John's Founder, Chairman and Chief Executive Officer, John Schnatter. "Papa John's brand promise of delivering Better Ingredients, Better Pizza is resonating with customers around the world reflected by our strong international comp sales and unit growth. Having just initiated a regular cash dividend, today's announcement of a two-for-one stock split demonstrates our Company's sustained commitment to building value for our shareholders and our confidence in the fundamentals and growth potential of our business."
Third quarter 2013 revenues were $346.3 million, a 6.4% increase from third quarter 2012 revenues of $325.5 million. Third quarter 2013 net income was $14.3 million, compared to third quarter 2012 net income of $13.0 million. Third quarter 2013 diluted earnings per share were $0.65 compared to third quarter 2012 diluted earnings per share of $0.55.
Revenues were $1.05 billion for the nine months ended September 29, 2013, a 7.8% increase from revenues of $975.4 million for the same period in 2012. Net income was $50.7 million for the nine months ended September 29, 2013, compared to $44.3 million for the same period in 2012 ($50.2 million and $46.4 million, for the nine-month periods in 2013 and 2012, respectively, excluding the impact of the previously disclosed 2012 Incentive Contribution). Diluted earnings per share were $2.27 for the nine months ended September 29, 2013, compared to $1.84 for the same period in 2012 ($2.24 and $1.93, for the nine-month periods in 2013 and 2012, respectively, excluding the impact of the 2012 Incentive Contribution).
Global Restaurant and Comparable Sales Information
Three Months Ended Nine Months Ended
Sept. 29,
2013 Sept. 23,
2012 Sept. 29,
2013 Sept. 23,
2012
Global restaurant sales growth (a) 6.9 % 7.1 % 6.7 % 7.6 %
Global restaurant sales growth, excluding the impact of foreign currency (a) 7.5 % 7.4 % 7.2 % 8.0 %
Comparable sales growth (b)
Domestic company-owned restaurants 5.1 % 5.0 % 5.0 % 5.1 %
North America franchised restaurants 0.6 % 1.7 % 1.3 % 2.4 %
System-wide North America restaurants 1.8 % 2.5 % 2.3 % 3.0 %
System-wide international restaurants 8.1 % 6.9 % 7.7 % 7.1 %
(a) Includes both company-owned and franchised restaurant sales.
(b) Represents the change in year-over-year sales for the same base of restaurants for the same fiscal periods. 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 conversion.
Management believes global restaurant and comparable sales growth information, as defined in the table above, is useful in analyzing our results since our franchisees pay royalties that are based on a percentage of franchise sales. Franchise sales generate commissary revenue in the United States and in certain international markets. Global restaurant and comparable sales growth information is also useful in analyzing industry trends and the strength of our brand. Franchise restaurant sales are not included in company revenues.
Revenue and Operating Highlights
All revenues and operating highlights below are compared to the same period of the prior year and exclude the Incentive Contribution, unless otherwise noted.
Revenues
Consolidated revenues increased $20.8 million, or 6.4%, for the third quarter of 2013 and increased $75.8 million, or 7.8%, for the nine months endedSeptember 29, 2013. The increases in revenues were primarily due to the following:
• Domestic company-owned restaurant sales increased $9.4 million, or 6.5%, and $35.1 million, or 8.1%, for the three and nine months, respectively, primarily due to increases in comparable sales of 5.1% and 5.0%. The increase for the nine-month period was also due to the net acquisition of 50 restaurants in the Denver and Minneapolis markets from a franchisee in the second quarter of 2012.
• North America franchise royalty revenue increased approximately $600,000, or 3.4%, and $2.0 million, or 3.4%, for the three and nine months, respectively, primarily due to increases in net franchise units over the prior year and increases in comparable sales of 0.6% and 1.3%, partially offset by royalty incentives offered to franchisees for meeting certain sales targets. The increase for the nine-month period was partially offset by reduced royalties attributable to the company's net acquisition of the 50 restaurants noted above.
• Domestic commissary sales increased $5.4 million, or 4.1%, and $25.1 million, or 6.3%, for the three and nine months, respectively, primarily due to increases in sales volumes as well as increases in the prices of commodities.
• International revenues increased $4.4 million, or 24.2%, and $11.2 million, or 21.4%, for the three and nine months, respectively, primarily due to increases in the number of restaurants and increases in comparable sales of 8.1% and 7.7%, calculated on a constant dollar basis.
Operating Highlights
The table below summarizes income before income taxes on a reporting segment basis, excluding the Incentive Contribution:
Papa John's Hits a Home Run as the Official Pizza of the New York Yankees
LOUISVILLE, Ky.--(BUSINESS WIRE)-- Papa John's International, Inc. (NASDAQ: PZZA) today announced it has signed a partnership deal to be the Official Pizza of the New York Yankees. As part of the deal, Papa John's will be the exclusive branded pizza sold in Yankee Stadium, have in-stadium signage, and will have the ability to use the Yankees marks in marketing and advertising.
"We are excited to be the Official Pizza of the New York Yankees," said Tim O'Hern, Papa John's Senior Vice President and Chief Development Officer. "The Yankees are one of the premiere teams in baseball and we're thrilled with the opportunity to serve our better quality pizza to their loyal fans."
In addition to having a presence at Yankees' games, Papa John's will be available to fans at other stadium events beginning on Dec. 28 at the New Era Pinstripe Bowl, New York's only college football bowl game.
"We are greatly pleased to expand our partnership with Papa John's, hoping that its pizza being featured at Yankee Stadium will further strengthen both brands globally," said Michael J. Tusiani, New York Yankees Senior Vice President Corporate Sales and Sponsorships.
Headquartered in Louisville, Kentucky, Papa John's International, Inc. (NASDAQ: PZZA) is the world's third largest pizza company. For 12 of the past 14 years, consumers have rated Papa John's No. 1 in customer satisfaction among all national pizza chains in the American Customer Satisfaction Index (ACSI). Papa John's is the Official Pizza Sponsor of the National Football League and Super Bowl XLVIII. For more information about the company or to order pizza online, visit Papa John's at www.papajohns.com, or visit us on Facebook at www.facebook.com/PapaJohns, on Twitter athttp://twitter.com/PapaJohns, or on our blog at www.papajohnsblog.com.
Papa John's International, Inc.
Darryl Carr, 502-261-4318
Director, Corporate Communications
Darryl_Carr@papajohns.com
Source: Papa John's International, Inc.
Two-for-One Stock Split Declared
Papa John's International, Inc. (NASDAQ: PZZA) today announced financial results for the three and nine months ended September 29, 2013.
Highlights
• Third quarter diluted earnings per share of $0.65 in 2013 compared to $0.55 in 2012, an increase of 18%
• System-wide comparable sales increases of 1.8% for North America and 8.1% for international during the quarter
• 2013 diluted earnings per share guidance increased to a range of $3.02 to $3.10
• 2013 guidance increased for North America comparable sales, international comparable sales, and worldwide net unit openings
"I'd like to congratulate our operators on yet another solid quarter," said Papa John's Founder, Chairman and Chief Executive Officer, John Schnatter. "Papa John's brand promise of delivering Better Ingredients, Better Pizza is resonating with customers around the world reflected by our strong international comp sales and unit growth. Having just initiated a regular cash dividend, today's announcement of a two-for-one stock split demonstrates our Company's sustained commitment to building value for our shareholders and our confidence in the fundamentals and growth potential of our business."
Third quarter 2013 revenues were $346.3 million, a 6.4% increase from third quarter 2012 revenues of $325.5 million. Third quarter 2013 net income was $14.3 million, compared to third quarter 2012 net income of $13.0 million. Third quarter 2013 diluted earnings per share were $0.65 compared to third quarter 2012 diluted earnings per share of $0.55.
Revenues were $1.05 billion for the nine months ended September 29, 2013, a 7.8% increase from revenues of $975.4 million for the same period in 2012. Net income was $50.7 million for the nine months ended September 29, 2013, compared to $44.3 million for the same period in 2012 ($50.2 million and $46.4 million, for the nine-month periods in 2013 and 2012, respectively, excluding the impact of the previously disclosed 2012 Incentive Contribution). Diluted earnings per share were $2.27 for the nine months ended September 29, 2013, compared to $1.84 for the same period in 2012 ($2.24 and $1.93, for the nine-month periods in 2013 and 2012, respectively, excluding the impact of the 2012 Incentive Contribution).
Global Restaurant and Comparable Sales Information
Three Months Ended Nine Months Ended
Sept. 29,
2013 Sept. 23,
2012 Sept. 29,
2013 Sept. 23,
2012
Global restaurant sales growth (a) 6.9 % 7.1 % 6.7 % 7.6 %
Global restaurant sales growth, excluding the impact of foreign currency (a) 7.5 % 7.4 % 7.2 % 8.0 %
Comparable sales growth (b)
Domestic company-owned restaurants 5.1 % 5.0 % 5.0 % 5.1 %
North America franchised restaurants 0.6 % 1.7 % 1.3 % 2.4 %
System-wide North America restaurants 1.8 % 2.5 % 2.3 % 3.0 %
System-wide international restaurants 8.1 % 6.9 % 7.7 % 7.1 %
(a) Includes both company-owned and franchised restaurant sales.
(b) Represents the change in year-over-year sales for the same base of restaurants for the same fiscal periods. 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 conversion.
Management believes global restaurant and comparable sales growth information, as defined in the table above, is useful in analyzing our results since our franchisees pay royalties that are based on a percentage of franchise sales. Franchise sales generate commissary revenue in the United States and in certain international markets. Global restaurant and comparable sales growth information is also useful in analyzing industry trends and the strength of our brand. Franchise restaurant sales are not included in company revenues.
Revenue and Operating Highlights
All revenues and operating highlights below are compared to the same period of the prior year and exclude the Incentive Contribution, unless otherwise noted.
Revenues
Consolidated revenues increased $20.8 million, or 6.4%, for the third quarter of 2013 and increased $75.8 million, or 7.8%, for the nine months endedSeptember 29, 2013. The increases in revenues were primarily due to the following:
• Domestic company-owned restaurant sales increased $9.4 million, or 6.5%, and $35.1 million, or 8.1%, for the three and nine months, respectively, primarily due to increases in comparable sales of 5.1% and 5.0%. The increase for the nine-month period was also due to the net acquisition of 50 restaurants in the Denver and Minneapolis markets from a franchisee in the second quarter of 2012.
• North America franchise royalty revenue increased approximately $600,000, or 3.4%, and $2.0 million, or 3.4%, for the three and nine months, respectively, primarily due to increases in net franchise units over the prior year and increases in comparable sales of 0.6% and 1.3%, partially offset by royalty incentives offered to franchisees for meeting certain sales targets. The increase for the nine-month period was partially offset by reduced royalties attributable to the company's net acquisition of the 50 restaurants noted above.
• Domestic commissary sales increased $5.4 million, or 4.1%, and $25.1 million, or 6.3%, for the three and nine months, respectively, primarily due to increases in sales volumes as well as increases in the prices of commodities.
• International revenues increased $4.4 million, or 24.2%, and $11.2 million, or 21.4%, for the three and nine months, respectively, primarily due to increases in the number of restaurants and increases in comparable sales of 8.1% and 7.7%, calculated on a constant dollar basis.
Operating Highlights
The table below summarizes income before income taxes on a reporting segment basis, excluding the Incentive Contribution:
Papa John's Hits a Home Run as the Official Pizza of the New York Yankees
LOUISVILLE, Ky.--(BUSINESS WIRE)-- Papa John's International, Inc. (NASDAQ: PZZA) today announced it has signed a partnership deal to be the Official Pizza of the New York Yankees. As part of the deal, Papa John's will be the exclusive branded pizza sold in Yankee Stadium, have in-stadium signage, and will have the ability to use the Yankees marks in marketing and advertising.
"We are excited to be the Official Pizza of the New York Yankees," said Tim O'Hern, Papa John's Senior Vice President and Chief Development Officer. "The Yankees are one of the premiere teams in baseball and we're thrilled with the opportunity to serve our better quality pizza to their loyal fans."
In addition to having a presence at Yankees' games, Papa John's will be available to fans at other stadium events beginning on Dec. 28 at the New Era Pinstripe Bowl, New York's only college football bowl game.
"We are greatly pleased to expand our partnership with Papa John's, hoping that its pizza being featured at Yankee Stadium will further strengthen both brands globally," said Michael J. Tusiani, New York Yankees Senior Vice President Corporate Sales and Sponsorships.
Headquartered in Louisville, Kentucky, Papa John's International, Inc. (NASDAQ: PZZA) is the world's third largest pizza company. For 12 of the past 14 years, consumers have rated Papa John's No. 1 in customer satisfaction among all national pizza chains in the American Customer Satisfaction Index (ACSI). Papa John's is the Official Pizza Sponsor of the National Football League and Super Bowl XLVIII. For more information about the company or to order pizza online, visit Papa John's at www.papajohns.com, or visit us on Facebook at www.facebook.com/PapaJohns, on Twitter athttp://twitter.com/PapaJohns, or on our blog at www.papajohnsblog.com.
Papa John's International, Inc.
Darryl Carr, 502-261-4318
Director, Corporate Communications
Darryl_Carr@papajohns.com
Source: Papa John's International, Inc.
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