Papa Johns Announces Fourth Quarter and Full Year 2023 Financial Results
- Strong North America comparable sales growth of 2% in the fourth quarter.
- Global system-wide restaurant sales of $1.34 billion in Q4, an 11% increase from the previous year.
- Total revenues of $571 million for the fourth quarter, up 9% from the prior year.
- Full-year North America comparable sales up 1% and total revenues of $2.14 billion.
- Diluted earnings per common share of $2.48 for 2023, showing positive growth.
- Positive progress in key operational areas, including improved margins and global footprint expansion.
- None.
Insights
The reported increase in Papa John's North America comparable sales by 2% and global system-wide restaurant sales by 11% indicates a resilient performance in a competitive market. However, the 6% decline in International comparable sales suggests challenges in overseas markets. The net unit openings, with 89 in Q4 and 208 for the full year, reflect a strategic expansion effort, contributing to the company's growth trajectory.
Investors should note that the adjusted diluted earnings per share increased for the quarter but decreased for the full year. This discrepancy might raise questions about long-term profitability and cost management. Additionally, the impact of the 53rd week on the financial results introduces a one-time factor that inflates the reported growth rates, which needs to be considered when comparing year-on-year performance.
The expansion of Papa John's digital solutions and marketing platforms could be a key driver for future customer engagement and sales growth, especially considering the ongoing shift towards digital ordering in the food service industry. Moreover, the focus on operational improvements, such as restaurant-level margin improvements and UK business model optimization, are crucial for maintaining competitiveness and profitability.
However, the variation in performance between domestic and international markets requires a nuanced approach to growth strategies. The company's ability to replicate its domestic success internationally will likely be a significant factor in its long-term success and should be closely monitored by stakeholders.
The fluctuations in commodity prices affecting the North America commissary segment's revenues highlight the importance of commodity price volatility on Papa John's cost structure. This can impact profit margins and pricing strategies. In the broader economic context, the company's performance must be assessed against the backdrop of macroeconomic factors such as inflation, consumer spending habits and currency exchange rates, especially for their international operations.
In light of the economic recovery from the pandemic, Papa John's growth in system-wide sales and unit openings suggests a positive consumer response to their offerings. The company's strategic initiatives, including international transformation efforts, will need to adapt to changing economic conditions to sustain growth and profitability.
Fourth Quarter Highlights
-
North America comparable sales(a) were up2% compared with the fourth quarter of 2022 as transaction and ticket growth delivered2% comparable sales at both Domestic Company-owned restaurants andNorth America franchised restaurants; International comparable sales(a) were down6% . - 89 net unit openings driven by 36 North America and 53 International net unit openings.
-
Global system-wide restaurant sales were
$1.34 billion 11% (b) increase from the prior year fourth quarter. Excluding the 53rd week in 2023, global system-wide sales were up approximately2% (b). -
Total revenues of
$571 million $45 million 9% , compared with a year ago. Excluding the 53rd week, Total revenues were up approximately1% . -
Diluted earnings per common share of
$0.79 $0.66 $0.91 $0.71
Full Year Highlights
-
North America comparable sales(a) were up1% from a year ago driven by a3% increase in Domestic Company-owned restaurants; International comparable sales(a) were down3% . -
208 net unit openings for the full year 2023 with 57 net unit openings in
North America and 151 net unit openings in International markets. -
Global system-wide restaurant sales were
$5.04 billion 5% (b) increase over the prior year. Excluding the 53rd week in 2023, global system-wide sales were up3% (b). -
Total revenues of
$2.14 billion $34 million 2% , from 2022. Excluding the 53rd week in 2023, Total revenues were down less than1% driven by lower revenues in ourNorth America commissary segment due to commodity price declines. -
Diluted earnings per common share of
$2.48 $1.89 $2.71 $2.94
“Papa Johns finished 2023 with a solid fourth quarter and achieved record system-wide sales for the year, marking this as our fourth consecutive year of positive
Lynch continued, “We are also making progress on our International transformation initiatives, which include optimizing our
“Looking ahead, we are excited about the long-term future of Papa Johns as we embark on our Back to Better 2.0 growth initiatives and focus on accelerating our
______________________________________________________
(a)
(b) Excludes the impact of foreign currency.
(c) Represents Non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation to the most comparable US GAAP measures.
Financial Highlights
|
|
Three Months Ended |
|
Year Ended |
|||||||||||||||
(In thousands, except per share amounts) |
|
December 31,
|
|
December 25,
|
|
Increase (Decrease) |
|
December 31,
|
|
December 25,
|
|
Increase (Decrease) |
|||||||
Total revenues |
|
$ |
571,322 |
|
$ |
526,234 |
|
$ |
45,088 |
|
$ |
2,135,713 |
|
$ |
2,102,103 |
|
$ |
33,610 |
|
Operating income |
|
$ |
42,566 |
|
$ |
36,230 |
|
$ |
6,336 |
|
$ |
147,142 |
|
$ |
109,030 |
|
$ |
38,112 |
|
Adjusted operating income (a) |
|
$ |
47,354 |
|
$ |
38,226 |
|
$ |
9,128 |
|
$ |
157,025 |
|
$ |
157,462 |
|
$ |
(437 |
) |
Net income attributable to the Company |
|
$ |
26,093 |
|
$ |
23,514 |
|
$ |
2,579 |
|
$ |
82,098 |
|
$ |
67,772 |
|
$ |
14,326 |
|
Diluted earnings per common share |
|
$ |
0.79 |
|
$ |
0.66 |
|
$ |
0.13 |
|
$ |
2.48 |
|
$ |
1.89 |
|
$ |
0.59 |
|
Adjusted diluted earnings per common share (a) |
|
$ |
0.91 |
|
$ |
0.71 |
|
$ |
0.20 |
|
$ |
2.71 |
|
$ |
2.94 |
|
$ |
(0.23 |
) |
Results for the fourth quarter and fiscal year 2023 are not directly comparable with the fourth quarter and fiscal year 2022, as year-over-year comparisons are affected by an additional week of operations in the fourth quarter of 2023. For comparability purposes we will describe the estimated impact of the 53rd week on 2023 in the discussion below.
Additionally, the comparison of results between periods is impacted by the International franchisee acquisitions that occurred in the second and third quarters of 2023, which resulted in 118 UK restaurants moving from franchised to Company-owned, as well as the second quarter 2022 Domestic refranchising, which resulted in 90 US restaurants moving from Company-owned to franchised.
Quarterly Results
Total revenues of
For the fourth quarter of 2023, global system-wide restaurant sales were
Operating income of
Adjusted operating income(a) was
Diluted earnings per common share was
Full Year Results
Total revenues of
For 2023, global system-wide restaurant sales were
Operating income of
Adjusted operating income(a) of
Diluted earnings per common share was
See the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our Annual Report on Form 10-K filed with the SEC for additional information concerning our operating results for the year ended December 31, 2023.
____________________________________________________
(a) Represents a Non-GAAP financial measure. See “Non-GAAP Measures” for a reconciliation to the most comparable US GAAP measures.
Global Restaurant Sales Information
Global restaurant and comparable sales information for the fourth quarter and year ended December 31, 2023, compared with the fourth quarter and year ended December 25, 2022 are as follows (See “Supplemental Information and Financial Statements” below for related definitions):
|
|
Three Months Ended |
|
Year ended |
||||||||
Amounts below exclude the impact of foreign currency |
|
December 31,
|
|
December 25,
|
|
December 31,
|
|
December 25,
|
||||
Comparable sales growth (decline) (a): |
|
|
|
|
|
|
|
|
||||
Domestic Company-owned restaurants |
|
2.2 |
% |
|
0.8 |
% |
|
3.4 |
% |
|
(1.0 |
)% |
|
|
1.7 |
% |
|
1.1 |
% |
|
0.1 |
% |
|
1.2 |
% |
|
|
1.8 |
% |
|
1.1 |
% |
|
0.8 |
% |
|
0.7 |
% |
International restaurants |
|
(5.5 |
)% |
|
(3.4 |
)% |
|
(3.1 |
)% |
|
(5.3 |
)% |
Total comparable sales growth (decline) |
|
0.1 |
% |
|
— |
% |
|
(0.1 |
)% |
|
(0.8 |
)% |
System-wide restaurant sales growth (b): |
|
|
|
|
|
|
|
|
||||
Domestic Company-owned restaurants |
|
12.4 |
% |
|
2.9 |
% |
|
6.7 |
% |
|
1.3 |
% |
|
|
10.9 |
% |
|
2.5 |
% |
|
3.6 |
% |
|
2.5 |
% |
|
|
11.2 |
% |
|
2.6 |
% |
|
4.1 |
% |
|
2.3 |
% |
International restaurants (c) |
|
10.5 |
% |
|
3.5 |
% |
|
7.7 |
% |
|
4.8 |
% |
Total global system-wide restaurant sales growth (c) |
|
11.0 |
% |
|
2.8 |
% |
|
5.0 |
% |
|
2.9 |
% |
______________________________________________________ |
||||||||||||
(a) Comparable sales growth (decline) in the fourth quarter of 2023 includes a 13-week comparison to the fourth quarter of 2022 and a 52 week comparison for fiscal year 2023 to fiscal year 2022. |
||||||||||||
(b) System-wide restaurant sales growth includes 14 weeks in the fourth quarter of 2023 and 53 weeks in fiscal year 2023. |
||||||||||||
(c) The twelve months ended December 25, 2022 exclude the impact of franchisee suspended restaurants. |
||||||||||||
Global Restaurant Unit Data
As of December 31, 2023, there were 5,906 Papa Johns restaurants operating in 50 countries and territories, as follows:
Fourth Quarter |
|
Domestic Company Owned |
|
Franchised |
|
Total |
|
International Company Owned |
|
International Franchised |
|
Total International |
|
System-wide |
||||||
September 24, 2023 (a) |
|
526 |
|
2,871 |
|
|
3,397 |
|
|
118 |
|
|
2,302 |
|
|
2,420 |
|
|
5,817 |
|
Opened |
|
5 |
|
43 |
|
|
48 |
|
|
— |
|
|
81 |
|
|
81 |
|
|
129 |
|
Closed |
|
— |
|
(12 |
) |
|
(12 |
) |
|
— |
|
|
(28 |
) |
|
(28 |
) |
|
(40 |
) |
Refranchised |
|
— |
|
— |
|
|
— |
|
|
(1 |
) |
|
1 |
|
|
— |
|
|
— |
|
December 31, 2023 |
|
531 |
|
2,902 |
|
|
3,433 |
|
|
117 |
|
|
2,356 |
|
|
2,473 |
|
|
5,906 |
|
Net unit growth/(decline) |
|
5 |
|
31 |
|
|
36 |
|
|
(1 |
) |
|
54 |
|
|
53 |
|
|
89 |
|
Full year |
|
Domestic Company Owned |
|
Franchised |
|
Total |
|
International Company Owned |
|
International Franchised |
|
Total International |
|
System-wide |
|||||||
December 25, 2022 (a) |
|
522 |
|
|
2,854 |
|
|
3,376 |
|
|
— |
|
|
2,322 |
|
|
2,322 |
|
|
5,698 |
|
Opened |
|
5 |
|
|
87 |
|
|
92 |
|
|
— |
|
|
234 |
|
|
234 |
|
|
326 |
|
Closed |
|
(2 |
) |
|
(33 |
) |
|
(35 |
) |
|
— |
|
|
(83 |
) |
|
(83 |
) |
|
(118 |
) |
Sold |
|
— |
|
|
(10 |
) |
|
(10 |
) |
|
— |
|
|
(118 |
) |
|
(118 |
) |
|
(128 |
) |
Acquired |
|
10 |
|
|
— |
|
|
10 |
|
|
118 |
|
|
— |
|
|
118 |
|
|
128 |
|
Refranchised |
|
(4 |
) |
|
4 |
|
|
— |
|
|
(1 |
) |
|
1 |
|
|
— |
|
|
— |
|
December 31, 2023 |
|
531 |
|
2,902 |
|
|
3,433 |
|
|
117 |
|
|
2,356 |
|
|
2,473 |
|
|
5,906 |
|
|
Net unit growth/(decline) |
|
9 |
|
|
48 |
|
|
57 |
|
|
117 |
|
|
34 |
|
|
151 |
|
|
208 |
|
(a) 2022 full year store activity has been adjusted from previous presentations, as eight International franchised locations were reclassified as closed locations following a review of temporary restaurant closures. |
|||||||||||||||||||||
Free Cash Flow
Free cash flow, a non-GAAP financial measure which the Company defines as net cash provided by operating activities, less purchases of property and equipment, was
|
|
Year Ended |
||||||
(in thousands) |
|
December 31, 2023 |
|
December 25, 2022 |
||||
Net cash provided by operating activities |
|
$ |
193,055 |
|
|
$ |
117,808 |
|
Purchases of property and equipment |
|
|
(76,620 |
) |
|
|
(78,391 |
) |
Free cash flow |
|
$ |
116,435 |
|
|
$ |
39,417 |
|
We view free cash flow as an important financial measure because it is one factor that management uses in determining the amount of cash available for discretionary investment. Free cash flow is not a term defined by GAAP, and as a result, our measure of free cash flow might not be comparable to similarly titled measures used by other companies. Free cash flow should not be construed as a substitute for or a better indicator of the Company’s performance than the Company’s GAAP measures.
Cash Dividend and Share Repurchases
The Company paid cash dividends of
Conference Call
Papa Johns will host a call with analysts today, February 29, 2024, at 8:00 a.m. Eastern Time. To access the conference call or webcast, please register online at: ir.papajohns.com/events-presentations. A replay of the webcast will be available two hours after the call and archived on the same web page.
About Papa Johns
Papa John’s International, Inc. (NASDAQ: PZZA) opened its doors in 1984 with one goal in mind: BETTER INGREDIENTS. BETTER PIZZA.® Papa Johns believes that using high-quality ingredients leads to superior quality pizzas. Its original dough is made of only six ingredients and is fresh, never frozen. Papa Johns tops its pizzas with real cheese made from mozzarella, pizza sauce made with vine-ripened tomatoes that go from vine to can in the same day and meat free of fillers. It was the first national pizza delivery chain to announce the removal of artificial flavors and synthetic colors from its entire food menu. Papa Johns is co-headquartered in
Forward-Looking Statements
Certain matters discussed in this press release and other Company communications that are not statements of historical fact constitute forward-looking statements within the meaning of the federal securities laws. Generally, the use of words such as “expect,” “intend,” “estimate,” “believe,” “anticipate,” “will,” “forecast,” “outlook”, “plan,” “project,” or similar words identify forward-looking statements that we intend to be included within the safe harbor protections provided by the federal securities laws. Such forward-looking statements include or may relate to projections or guidance concerning business performance, revenue, earnings, cash flow, earnings per share, share repurchases, the current economic environment, commodity and labor costs, currency fluctuations, profit margins, supply chain operating margin, net unit growth, unit level performance, capital expenditures, restaurant and franchise development, restaurant acquisitions, store closures, labor shortages, labor cost increases, inflation, royalty relief, franchisee support and incentives, the effectiveness of our menu innovations and other business initiatives, investments in product and digital innovation, marketing efforts and investments, liquidity, compliance with debt covenants, impairments, strategic decisions and actions, changes to our national marketing fund, changes to our commissary model, dividends, effective tax rates, regulatory changes and impacts, investments in and repositioning of the
Our forward-looking statements are based on our assumptions which are based on currently available information. Actual outcomes and results may differ materially from those matters expressed or implied in our forward-looking statements as a result of various factors, including but not limited to risks related to: deteriorating economic conditions in the
For more information about the company, please visit www.papajohns.com.
Supplemental Information and Financial Statements
Definitions
“Comparable sales” represents the change in year-over-year sales for the same base of restaurants for the same fiscal periods. Comparable sales excludes sales of restaurants that were not open during both the current and prior fiscal periods and franchisees for which we suspended corporate support. “Global system-wide restaurant sales” represents total restaurant sales for all Company-owned and franchised restaurants open during the comparable periods, and “Global system-wide restaurant sales growth (decline)” represents the change in total system restaurant sales year-over-year. Global system-wide restaurant sales and global system-wide sales growth (decline) exclude franchisees for which we suspended corporate support.
“Equivalent units” represents the number of restaurants open at the beginning of a given period, adjusted for restaurants opened, closed, acquired or sold during the period on a weighted average basis.
We believe
Non-GAAP Financial Measures
In addition to the results provided in accordance with
|
|
Three months ended |
|
Year Ended |
||||||||||||
(In thousands, except per share amounts) |
|
December 31,
|
|
December 25,
|
|
December 31,
|
|
December 25,
|
||||||||
Operating income |
|
$ |
42,566 |
|
|
$ |
36,230 |
|
|
$ |
147,142 |
|
|
$ |
109,030 |
|
|
|
|
1,742 |
|
|
|
1,996 |
|
|
|
4,243 |
|
|
|
5,223 |
|
International restructuring costs (b) |
|
|
2,178 |
|
|
|
— |
|
|
|
2,178 |
|
|
|
— |
|
|
|
|
868 |
|
|
|
— |
|
|
|
868 |
|
|
|
— |
|
Refranchising and impairment losses (d) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26,702 |
|
Legal settlements (e) |
|
|
— |
|
|
|
— |
|
|
|
577 |
|
|
|
15,000 |
|
Other costs (f) |
|
|
— |
|
|
|
— |
|
|
|
2,017 |
|
|
|
1,507 |
|
Adjusted operating income |
|
|
47,354 |
|
|
|
38,226 |
|
|
|
157,025 |
|
|
|
157,462 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders |
|
$ |
26,093 |
|
|
$ |
23,373 |
|
|
$ |
82,098 |
|
|
$ |
67,362 |
|
|
|
|
1,742 |
|
|
|
1,996 |
|
|
|
4,243 |
|
|
|
5,223 |
|
International restructuring costs (b) |
|
|
2,178 |
|
|
|
— |
|
|
|
2,178 |
|
|
|
— |
|
|
|
|
868 |
|
|
|
— |
|
|
|
868 |
|
|
|
— |
|
Refranchising and impairment losses (d) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26,702 |
|
Legal settlements (e) |
|
|
— |
|
|
|
— |
|
|
|
577 |
|
|
|
15,000 |
|
Other costs (f) |
|
|
— |
|
|
|
— |
|
|
|
2,017 |
|
|
|
1,507 |
|
Tax effect of adjustments (g) |
|
|
(1,082 |
) |
|
|
(449 |
) |
|
|
(2,234 |
) |
|
|
(10,897 |
) |
Adjusted net income attributable to common shareholders (h) |
|
|
29,799 |
|
|
|
24,920 |
|
|
|
89,747 |
|
|
|
104,897 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per common share |
|
$ |
0.79 |
|
|
$ |
0.66 |
|
|
$ |
2.48 |
|
|
$ |
1.89 |
|
|
|
|
0.06 |
|
|
|
0.07 |
|
|
|
0.13 |
|
|
|
0.15 |
|
International restructuring costs (b) |
|
|
0.07 |
|
|
|
— |
|
|
|
0.07 |
|
|
|
— |
|
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
Refranchising and impairment losses (d) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.75 |
|
Legal settlements (e) |
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
0.42 |
|
Other costs (f) |
|
|
— |
|
|
|
— |
|
|
|
0.06 |
|
|
|
0.04 |
|
Tax effect of adjustments (g) |
|
|
(0.03 |
) |
|
|
(0.02 |
) |
|
|
(0.07 |
) |
|
|
(0.31 |
) |
Adjusted diluted earnings per common share (h) |
|
|
0.91 |
|
|
|
0.71 |
|
|
|
2.71 |
|
|
|
2.94 |
|
See footnotes on following page |
||||||||||||||||
Footnotes to Non-GAAP Financial Measures
(a) |
Represents costs associated with repositioning the |
||
(b) |
In the fourth quarter of 2023, the Company initiated an International Restructuring plan. During the period, costs incurred related to the restructuring include |
||
(c) |
Represents a one-time non-cash charge of |
||
(d) |
Refranchising and impairment losses consisted of the following pre-tax adjustments: | ||
(1) |
A one-time, non-cash charge of |
||
|
(2) |
A one-time non-cash charge of |
|
|
(3) |
An impairment charge of |
|
(e) |
Represents accruals for certain legal settlements recorded in General and administrative expenses. | ||
(f) |
Represents severance and related costs associated with the transition of certain executives incurred during the twelve month periods ended December 31, 2023 and December 25, 2022. | ||
(g) |
The tax effect on non-GAAP adjustments was calculated by applying the marginal tax rate of |
||
(h) |
Amounts shown exclude the impact of allocation of undistributed earnings to participating securities. | ||
Papa John’s International, Inc. and Subsidiaries Condensed Consolidated Balance Sheets |
||||||||
(In thousands, except per share amounts) |
|
December 31,
|
|
December 25,
|
||||
|
|
|
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
40,587 |
|
|
$ |
47,373 |
|
Accounts receivable (less allowance for credit losses of |
|
|
104,244 |
|
|
|
102,533 |
|
Notes receivable, current portion |
|
|
5,199 |
|
|
|
6,848 |
|
Income tax receivable |
|
|
2,577 |
|
|
|
8,780 |
|
Inventories |
|
|
36,126 |
|
|
|
41,382 |
|
Prepaid expenses and other current assets |
|
|
42,285 |
|
|
|
44,123 |
|
Total current assets |
|
|
231,018 |
|
|
|
251,039 |
|
Property and equipment, net |
|
|
282,812 |
|
|
|
249,793 |
|
Finance lease right-of-use assets, net |
|
|
31,740 |
|
|
|
24,941 |
|
Operating lease right-of-use assets |
|
|
164,158 |
|
|
|
172,425 |
|
Notes receivable, less current portion (less allowance for credit losses of |
|
|
12,346 |
|
|
|
21,248 |
|
Goodwill |
|
|
76,206 |
|
|
|
70,616 |
|
Other assets |
|
|
76,725 |
|
|
|
74,165 |
|
Total assets |
|
$ |
875,005 |
|
|
$ |
864,227 |
|
|
|
|
|
|
||||
Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
74,949 |
|
|
$ |
62,316 |
|
Income and other taxes payable |
|
|
17,948 |
|
|
|
8,766 |
|
Accrued expenses and other current liabilities |
|
|
158,167 |
|
|
|
142,535 |
|
Current deferred revenue |
|
|
20,427 |
|
|
|
21,272 |
|
Current finance lease liabilities |
|
|
9,029 |
|
|
|
6,850 |
|
Current operating lease liabilities |
|
|
24,076 |
|
|
|
23,418 |
|
Total current liabilities |
|
|
304,596 |
|
|
|
265,157 |
|
Deferred revenue |
|
|
20,366 |
|
|
|
23,204 |
|
Long-term finance lease liabilities |
|
|
24,144 |
|
|
|
19,022 |
|
Long-term operating lease liabilities |
|
|
151,050 |
|
|
|
160,905 |
|
Long-term debt, net |
|
|
757,422 |
|
|
|
597,069 |
|
Other long-term liabilities |
|
|
60,192 |
|
|
|
68,317 |
|
Total liabilities |
|
|
1,317,770 |
|
|
|
1,133,674 |
|
|
|
|
|
|
||||
Redeemable noncontrolling interests |
|
|
851 |
|
|
|
1,217 |
|
|
|
|
|
|
||||
Stockholders’ deficit: |
|
|
|
|
||||
Common stock ( |
|
|
492 |
|
|
|
491 |
|
Additional paid-in capital |
|
|
452,290 |
|
|
|
449,829 |
|
Accumulated other comprehensive loss |
|
|
(7,803 |
) |
|
|
(10,135 |
) |
Retained earnings |
|
|
219,027 |
|
|
|
195,856 |
|
Treasury stock (16,747 shares at December 31, 2023 and 14,402 shares at December 25, 2022, at cost) |
|
|
(1,123,098 |
) |
|
|
(922,434 |
) |
Total stockholders’ deficit |
|
|
(459,092 |
) |
|
|
(286,393 |
) |
Noncontrolling interests in subsidiaries |
|
|
15,476 |
|
|
|
15,729 |
|
Total Stockholders’ deficit |
|
|
(443,616 |
) |
|
|
(270,664 |
) |
Total Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
$ |
875,005 |
|
|
$ |
864,227 |
|
Papa John’s International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations |
||||||||||||||||
|
|
Three Months Ended |
|
Year ended |
||||||||||||
(In thousands, except per share amounts) |
|
December 31,
|
|
December 25,
|
|
December 31,
|
|
December 25,
|
||||||||
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Domestic Company-owned restaurant sales |
|
$ |
193,521 |
|
|
$ |
172,163 |
|
|
$ |
726,362 |
|
|
$ |
708,389 |
|
|
|
|
38,726 |
|
|
|
34,502 |
|
|
|
144,550 |
|
|
|
137,399 |
|
|
|
|
227,928 |
|
|
|
224,457 |
|
|
|
852,361 |
|
|
|
869,634 |
|
International revenues |
|
|
48,189 |
|
|
|
32,593 |
|
|
|
157,187 |
|
|
|
129,903 |
|
Other revenues |
|
|
62,958 |
|
|
|
62,519 |
|
|
|
255,253 |
|
|
|
256,778 |
|
Total revenues |
|
|
571,322 |
|
|
|
526,234 |
|
|
|
2,135,713 |
|
|
|
2,102,103 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||
Operating costs (excluding depreciation and amortization shown separately below): |
|
|
|
|
|
|
|
|
||||||||
Domestic Company-owned restaurant expenses |
|
|
150,967 |
|
|
|
143,321 |
|
|
|
587,889 |
|
|
|
585,307 |
|
|
|
|
211,120 |
|
|
|
206,757 |
|
|
|
787,554 |
|
|
|
811,446 |
|
International expenses |
|
|
35,656 |
|
|
|
18,655 |
|
|
|
103,198 |
|
|
|
76,001 |
|
Other expenses |
|
|
57,822 |
|
|
|
58,358 |
|
|
|
235,483 |
|
|
|
238,810 |
|
General and administrative expenses |
|
|
55,916 |
|
|
|
48,893 |
|
|
|
210,357 |
|
|
|
217,412 |
|
Depreciation and amortization |
|
|
17,275 |
|
|
|
14,020 |
|
|
|
64,090 |
|
|
|
52,032 |
|
Total costs and expenses |
|
|
528,756 |
|
|
|
490,004 |
|
|
|
1,988,571 |
|
|
|
1,981,008 |
|
Refranchising and impairment loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,065 |
) |
Operating income |
|
|
42,566 |
|
|
|
36,230 |
|
|
|
147,142 |
|
|
|
109,030 |
|
Net interest expense |
|
|
(11,795 |
) |
|
|
(7,294 |
) |
|
|
(43,469 |
) |
|
|
(25,261 |
) |
Income before income taxes |
|
|
30,771 |
|
|
|
28,936 |
|
|
|
103,673 |
|
|
|
83,769 |
|
Income tax expense |
|
|
4,328 |
|
|
|
5,208 |
|
|
|
20,874 |
|
|
|
14,420 |
|
Net income before attribution to noncontrolling interests |
|
|
26,443 |
|
|
|
23,728 |
|
|
|
82,799 |
|
|
|
69,349 |
|
Net income attributable to noncontrolling interests |
|
|
(350 |
) |
|
|
(214 |
) |
|
|
(701 |
) |
|
|
(1,577 |
) |
Net income attributable to the Company |
|
$ |
26,093 |
|
|
$ |
23,514 |
|
|
$ |
82,098 |
|
|
$ |
67,772 |
|
|
|
|
|
|
|
|
|
|
||||||||
Calculation of net income for earnings per share: |
|
|
|
|
|
|
|
|
||||||||
Net income attributable to the Company |
|
$ |
26,093 |
|
|
$ |
23,514 |
|
|
$ |
82,098 |
|
|
$ |
67,772 |
|
Dividends paid to participating securities |
|
|
— |
|
|
|
(78 |
) |
|
|
— |
|
|
|
(306 |
) |
Net income attributable to participating securities |
|
|
— |
|
|
|
(63 |
) |
|
|
— |
|
|
|
(104 |
) |
Net income attributable to common shareholders |
|
$ |
26,093 |
|
|
$ |
23,373 |
|
|
$ |
82,098 |
|
|
$ |
67,362 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share |
|
$ |
0.80 |
|
|
$ |
0.66 |
|
|
$ |
2.49 |
|
|
$ |
1.90 |
|
Diluted earnings per common share |
|
$ |
0.79 |
|
|
$ |
0.66 |
|
|
$ |
2.48 |
|
|
$ |
1.89 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares outstanding |
|
|
32,594 |
|
|
|
35,167 |
|
|
|
32,931 |
|
|
|
35,497 |
|
Diluted weighted average common shares outstanding |
|
|
32,829 |
|
|
|
35,336 |
|
|
|
33,159 |
|
|
|
35,717 |
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share |
|
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
1.76 |
|
|
$ |
1.54 |
|
Papa John’s International, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows |
||||||||
|
|
Year ended |
||||||
(In thousands) |
|
December 31,
|
|
December 25,
|
||||
Operating activities |
|
|
|
|
||||
Net income before attribution to noncontrolling interests |
|
$ |
82,799 |
|
|
$ |
69,349 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Provision (benefit) for allowance for credit losses on accounts and notes receivable |
|
|
5,393 |
|
|
|
20,539 |
|
Depreciation and amortization |
|
|
64,090 |
|
|
|
52,032 |
|
Refranchising and impairment loss |
|
|
— |
|
|
|
12,065 |
|
Deferred income taxes |
|
|
(5,991 |
) |
|
|
2,798 |
|
Stock-based compensation expense |
|
|
17,924 |
|
|
|
18,388 |
|
Other |
|
|
66 |
|
|
|
1,056 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
||||
Accounts receivable |
|
|
(8,049 |
) |
|
|
(29,167 |
) |
Income tax receivable |
|
|
6,212 |
|
|
|
586 |
|
Inventories |
|
|
5,441 |
|
|
|
(7,496 |
) |
Prepaid expenses and other current assets |
|
|
817 |
|
|
|
5,587 |
|
Other assets and liabilities |
|
|
(11,803 |
) |
|
|
(13,458 |
) |
Accounts payable |
|
|
23,371 |
|
|
|
(8,350 |
) |
Income and other taxes payable |
|
|
9,087 |
|
|
|
(10,710 |
) |
Accrued expenses and other current liabilities |
|
|
7,402 |
|
|
|
4,846 |
|
Deferred revenue |
|
|
(3,704 |
) |
|
|
(257 |
) |
Net cash provided by operating activities |
|
|
193,055 |
|
|
|
117,808 |
|
Investing activities |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(76,620 |
) |
|
|
(78,391 |
) |
Notes issued |
|
|
(4,338 |
) |
|
|
(9,296 |
) |
Repayments of notes issued |
|
|
4,655 |
|
|
|
13,045 |
|
Acquisitions, net of cash acquired |
|
|
(5,613 |
) |
|
|
(1,219 |
) |
Proceeds from refranchising, net of cash transferred |
|
|
— |
|
|
|
13,588 |
|
Proceeds from the sale of property and equipment |
|
|
3,457 |
|
|
|
— |
|
Other |
|
|
3,336 |
|
|
|
(520 |
) |
Net cash used in investing activities |
|
|
(75,123 |
) |
|
|
(62,793 |
) |
Financing activities |
|
|
|
|
||||
Net proceeds of revolving credit facilities |
|
|
159,000 |
|
|
|
115,000 |
|
Proceeds from exercise of stock options |
|
|
2,252 |
|
|
|
4,036 |
|
Acquisition of Company common stock |
|
|
(210,348 |
) |
|
|
(125,000 |
) |
Dividends paid to common stockholders |
|
|
(58,451 |
) |
|
|
(54,767 |
) |
Tax payments for equity award issuances |
|
|
(6,416 |
) |
|
|
(9,546 |
) |
Distributions to noncontrolling interests |
|
|
(1,320 |
) |
|
|
(1,211 |
) |
Principal payments on finance leases |
|
|
(8,821 |
) |
|
|
(5,416 |
) |
Other |
|
|
28 |
|
|
|
664 |
|
Net cash used in financing activities |
|
|
(124,076 |
) |
|
|
(76,240 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(642 |
) |
|
|
(2,012 |
) |
Change in cash and cash equivalents |
|
|
(6,786 |
) |
|
|
(23,237 |
) |
Cash and cash equivalents at beginning of period |
|
|
47,373 |
|
|
|
70,610 |
|
Cash and cash equivalents at end of period |
|
$ |
40,587 |
|
|
$ |
47,373 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227983686/en/
Papa Johns Investor Relations
investor_relations@papajohns.com
Source: Papa John’s International, Inc.
FAQ
What were Papa John’s North America comparable sales in the fourth quarter of 2023?
How did Papa John’s global system-wide restaurant sales perform in the fourth quarter of 2023?
What was the total revenue reported by Papa John’s for the fourth quarter of 2023?
What was the change in North America comparable sales for Papa John’s in the full year 2023?
What were Papa John’s total revenues for the full year 2023?
What were Papa John’s diluted earnings per common share for 2023?
What progress did Papa John’s make in key operational areas during the year?
