Papa Johns Announces Second Quarter 2024 Financial Results
Papa Johns (Nasdaq: PZZA) reported its Q2 2024 financial results, showing a 1% decrease in total revenues to $508 million. North America comparable sales declined 4%, while International sales remained flat. The company experienced 31 net unit closures, primarily due to strategic International closures. Global system-wide restaurant sales decreased by 1% to $1.20 billion. Operating income fell 19% to $28 million, but Adjusted operating income rose 4% to $38 million. Diluted earnings per share decreased to $0.37 from $0.54 in Q2 2023, while Adjusted diluted EPS increased slightly to $0.61. The company is focusing on improving customer experiences, strengthening its restaurant economic model, and evolving its marketing strategy to meet consumer value expectations.
Papa Johns (Nasdaq: PZZA) ha riportato i risultati finanziari del secondo trimestre 2024, evidenziando un decremento dell'1% nei ricavi totali, che ammontano a $508 milioni. Le vendite comparabili in Nord America sono diminuite del 4%, mentre le vendite internazionali sono rimaste stabili. L'azienda ha registrato 31 chiusure nette di unità, principalmente a causa di chiusure strategiche a livello internazionale. Le vendite globali dei ristoranti sono diminuite dell'1%, raggiungendo $1,20 miliardi. L'utile operativo è sceso del 19% a $28 milioni, ma l'utile operativo rettificato è aumentato del 4% a $38 milioni. L'utile per azione diluito è sceso a $0,37 da $0,54 nel secondo trimestre 2023, mentre l'EPS rettificato diluito è aumentato leggermente a $0,61. L'azienda si sta concentrando sul miglioramento dell'esperienza del cliente, rafforzando il proprio modello economico dei ristoranti e sviluppando la propria strategia di marketing per soddisfare le aspettative di valore dei consumatori.
Papa Johns (Nasdaq: PZZA) informó sus resultados financieros del segundo trimestre de 2024, mostrando una disminución del 1% en los ingresos totales a $508 millones. Las ventas comparables en Norteamérica disminuyeron un 4%, mientras que las ventas internacionales se mantuvieron estables. La empresa experimentó 31 cierres netos de unidades, principalmente debido a cierres estratégicos internacionales. Las ventas globales de restaurantes cayeron un 1% a $1,20 mil millones. El ingreso operativo cayó un 19% a $28 millones, pero el ingreso operativo ajustado aumentó un 4% a $38 millones. Las ganancias por acción diluidas disminuyeron a $0.37 desde $0.54 en el segundo trimestre de 2023, mientras que el EPS ajustado diluido aumentó ligeramente a $0.61. La empresa se está enfocando en mejorar la experiencia del cliente, fortalecer su modelo económico de restaurantes y evolucionar su estrategia de marketing para satisfacer las expectativas de valor de los consumidores.
파파존스 (Nasdaq: PZZA)는 2024년 2분기 재무 결과를 발표하며 총 수익이 1% 감소하여 5억 8백만 달러에 이르렀다고 밝혔다. 북미의 동기 대비 매출은 4% 감소했으며, 국제 매출은 정체 상태를 유지했습니다. 회사는 주로 전략적 국제 폐쇄로 인해 31개의 순 매장 폐쇄를 경험했습니다. 전세계 시스템 전반의 레스토랑 판매는 1% 감소하여 12억 달러에 달했습니다. 운영 수익은 19% 감소하여 2천8백만 달러로 떨어졌지만, 조정된 운영 수익은 4% 증가하여 3천8백만 달러에 이르렀습니다. 희석 주당순이익은 2023년 2분기의 0.54달러에서 0.37달러로 감소했으며, 조정된 희석 EPS는 약간 증가하여 0.61달러에 이릅니다. 회사는 고객 경험 개선, 레스토랑 경제 모델 강화, 소비자 가치 기대를 충족하기 위한 마케팅 전략 개발에 집중하고 있습니다.
Papa Johns (Nasdaq: PZZA) a annoncé ses résultats financiers du deuxième trimestre 2024, montrant une diminution de 1% des recettes totales, soit 508 millions de dollars. Les ventes comparables en Amérique du Nord ont baissé de 4%, tandis que les ventes internationales sont restées stables. L'entreprise a subi 31 fermetures nettes d'unités, principalement en raison de fermetures internationales stratégiques. Les ventes mondiales des restaurants ont diminué de 1% pour atteindre 1,20 milliard de dollars. Le résultat d'exploitation a chuté de 19% à 28 millions de dollars, mais le résultat d'exploitation ajusté a augmenté de 4% à 38 millions de dollars. Le bénéfice par action dilué a baissé à 0,37 $ contre 0,54 $ au 2ème trimestre 2023, tandis que le BPA ajusté dilué a légèrement augmenté à 0,61 $. La société se concentre sur l'amélioration de l'expérience client, le renforcement de son modèle économique de restaurant et l'évolution de sa stratégie marketing pour répondre aux attentes de valeur des consommateurs.
Papa Johns (Nasdaq: PZZA) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht, die einen Rückgang der Gesamterlöse um 1% auf 508 Millionen Dollar zeigen. Die vergleichbaren Verkaufszahlen in Nordamerika sanken um 4%, während die internationalen Verkäufe stabil blieben. Das Unternehmen verzeichnete 31 Netto-Schließungen von Einheiten, hauptsächlich aufgrund strategischer internationaler Schließungen. Die globalen Restaurantverkäufe gingen um 1% auf 1,20 Milliarden Dollar zurück. Das Betriebsergebnis fiel um 19% auf 28 Millionen Dollar, aber das bereinigte Betriebsergebnis stieg um 4% auf 38 Millionen Dollar. Der verwässerte Gewinn pro Aktie sank von 0,54 Dollar im 2. Quartal 2023 auf 0,37 Dollar, während der bereinigte verwässerte EPS leicht auf 0,61 Dollar stieg. Das Unternehmen konzentriert sich darauf, die Kundenerfahrungen zu verbessern, sein wirtschaftliches Restaurantmodell zu stärken und seine Marketingstrategie weiterzuentwickeln, um die Wertvorstellungen der Verbraucher zu erfüllen.
- Adjusted operating income increased 4% to $38 million
- Adjusted diluted earnings per share rose to $0.61 from $0.59 year-over-year
- Improved restaurant-level margins and continued focus on cost discipline
- Lower interest expense due to reduced average outstanding debt
- Total revenues decreased 1% to $508 million
- North America comparable sales declined 4%
- 31 net unit closures, including 43 Company-owned restaurants in the UK
- Operating income decreased 19% to $28 million
- Diluted earnings per share fell to $0.37 from $0.54 year-over-year
- Global system-wide restaurant sales decreased 1% to $1.20 billion
Insights
Papa John's Q2 2024 results reveal a challenging quarter with mixed financial outcomes. The company reported a
Despite these headwinds, there are some positive indicators. Adjusted operating income increased by
The company's focus on maintaining product quality while managing costs has helped offset softer sales. However, the closure of 31 net units, including 43 Company-owned restaurants in the UK, signals potential restructuring efforts. Investors should monitor the company's strategies to improve unit economics and drive unit development in the coming quarters.
Papa John's Q2 results reflect broader industry challenges in the QSR sector. The
The company's acknowledgment of a highly promotional QSR environment and a more value-conscious consumer is crucial. This trend could persist, potentially pressuring margins if Papa John's needs to increase promotional activities to maintain market share. The focus on evolving marketing to meet consumers' value expectations and enhancing the digital and loyalty experience are positive steps, but their effectiveness remains to be seen.
Investors should closely watch the company's ability to balance quality with value propositions and its success in streamlining the ordering journey to drive consumer engagement in an increasingly competitive market landscape.
Papa John's Q2 performance underscores the ongoing challenges in the pizza delivery segment. The decline in North America comparable sales, coupled with 31 net unit closures, signals potential market saturation and the need for strategic repositioning. However, the company's ability to improve restaurant-level margins amidst these challenges is commendable.
The appointment of Todd Penegor as the new CEO is a significant development. His focus on creating great experiences for customers and team members, while ensuring a strong restaurant economic model, aligns with industry best practices. The emphasis on building a collaborative partnership with franchisees is important for sustainable growth.
The company's initiatives to sharpen focus, improve unit economics and enhance the consumer experience are steps in the right direction. However, execution will be key. Investors should monitor the effectiveness of these strategies in driving franchisee profitability and unit growth in the coming quarters, as these will be critical indicators of Papa John's ability to regain momentum in a competitive market.
Highlights
-
North America comparable sales(a) were down4% from a year ago as Domestic Company-owned restaurants were down4% andNorth America franchised restaurants were down3% ; International comparable sales(a) were flat compared with the prior year period. -
31 net unit closures in the second quarter resulting from anticipated strategic International closures, including 43 Company-owned restaurants in the
UK . -
Global system-wide restaurant sales were
$1.20 billion 1% (b) decrease compared with the prior year second quarter, driven by lowerNorth America comparable sales partially offset by trailing twelve month net unit growth. -
Total revenues of
$508 million 1% compared with a year ago driven by lower revenues in ourNorth America commissary segment primarily due to a combination of lower volume and commodity prices. -
Operating income of
$28 million 19% compared with the second quarter of 2023, while Adjusted operating income(c) of$38 million 4% on improved restaurant-level margins and continued focus on cost discipline. -
Diluted earnings per common share of
$0.37 $0.54 $0.61 $0.59
“I am honored and excited to join the Papa Johns team and look forward to building a strong and collaborative partnership with our franchisees,” said Todd Penegor, President and Chief Executive Officer. “As we move forward together, our number one priority will be to create great experiences for our customers and team members, while also ensuring the restaurant economic model is strong. We will move quickly to build on our strengths and execute today as we evolve to be even better tomorrow.”
Commenting on second quarter results, Ravi Thanawala, Chief Financial Officer, stated, “Papa Johns’ commitment to maintaining the quality of our product and brand as well as managing our costs drove continued improvement in restaurant-level margins and Adjusted operating income, helping to offset our softer sales in the second quarter. During the quarter, demand for our core product — pizza, remained solid despite facing a highly promotional QSR environment and a more value-conscious consumer.
“We recognize there is work to do to achieve our full potential. We are committed to doing what is necessary to become the pizza brand of choice for consumers and franchisees around the world,” continued Thanawala. “We are actively pursuing opportunities that sharpen our focus, improve unit economics, drive unit development and provide an excellent consumer experience. We are evolving our marketing to meet consumers’ value expectations, investing in our digital experience to streamline our ordering journey and enhancing our loyalty experience to drive consumer engagement.
“We are confident that our approach will drive long-term increased franchisee profitability and sustainable, profitable growth for all stakeholders,” concluded Thanawala.
_______________________________________________________ |
(a) |
(b) Excludes the impact of foreign currency. |
(c) Represents a non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation to the most comparable US GAAP measure. |
Financial Highlights
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
(In thousands, except per share amounts) |
|
June 30,
|
|
June 25,
|
|
Increase (Decrease) |
|
June 30,
|
|
June 25,
|
|
Increase (Decrease) |
||||||||
Total revenues |
|
$ |
507,894 |
|
$ |
514,530 |
|
$ |
(6,636 |
) |
|
$ |
1,021,810 |
|
$ |
1,041,579 |
|
$ |
(19,769 |
) |
Operating income |
|
$ |
28,226 |
|
$ |
34,912 |
|
$ |
(6,686 |
) |
|
$ |
61,944 |
|
$ |
72,708 |
|
$ |
(10,764 |
) |
Adjusted operating income (a) |
|
$ |
38,355 |
|
$ |
36,881 |
|
$ |
1,474 |
|
|
$ |
81,596 |
|
$ |
76,033 |
|
$ |
5,563 |
|
Net income attributable to the Company |
|
$ |
12,243 |
|
$ |
17,768 |
|
$ |
(5,525 |
) |
|
$ |
26,879 |
|
$ |
40,144 |
|
$ |
(13,265 |
) |
Diluted earnings per common share |
|
$ |
0.37 |
|
$ |
0.54 |
|
$ |
(0.17 |
) |
|
$ |
0.82 |
|
$ |
1.20 |
|
$ |
(0.38 |
) |
Adjusted diluted earnings per common share (a) |
|
$ |
0.61 |
|
$ |
0.59 |
|
$ |
0.02 |
|
|
$ |
1.28 |
|
$ |
1.28 |
|
$ |
— |
|
Results for the first six months of 2024 are not directly comparable with the first six months of 2023, as year-over-year comparisons are impacted by the
Quarterly Results
Total revenues of
For the second quarter of 2024, Global system-wide restaurant sales were
Second quarter Operating income was
The increase in Adjusted operating income in the second quarter of 2024 was primarily due to improved margins at our Domestic Company-owned restaurants and local marketing savings. These increases were partially offset by an approximate
Diluted earnings per common share was
See the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our Quarterly Report on Form 10-Q filed with the SEC for additional information concerning our operating results for the three and six months ended June 30, 2024.
(a) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation to the most comparable US GAAP measures. |
Global Restaurant Sales Information
Global restaurant and comparable sales information for the second quarter ended June 30, 2024, compared with the second quarter ended June 25, 2023 are as follows (See “Supplemental Information and Financial Statements” below for related definitions):
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
Amounts below exclude the impact of foreign currency |
|
June 30,
|
|
June 25,
|
|
June 30,
|
|
June 25,
|
||||
Comparable sales growth (decline): |
|
|
|
|
|
|
|
|
||||
Domestic Company-owned restaurants |
|
(4.2 |
)% |
|
2.2 |
% |
|
(3.6 |
)% |
|
2.8 |
% |
|
|
(3.4 |
)% |
|
(2.3 |
)% |
|
(2.4 |
)% |
|
(1.6 |
)% |
|
|
(3.6 |
)% |
|
(1.4 |
)% |
|
(2.7 |
)% |
|
(0.7 |
)% |
International restaurants |
|
(0.1 |
)% |
|
(0.7 |
)% |
|
(1.4 |
)% |
|
(3.3 |
)% |
Total comparable sales growth (decline) |
|
(2.7 |
)% |
|
(1.3 |
)% |
|
(2.4 |
)% |
|
(1.3 |
)% |
System-wide restaurant sales growth (decline): |
|
|
|
|
|
|
|
|
||||
Domestic Company-owned restaurants |
|
(1.5 |
)% |
|
2.5 |
% |
|
(1.7 |
)% |
|
3.7 |
% |
|
|
(1.9 |
)% |
|
(0.6 |
)% |
|
(1.8 |
)% |
|
0.1 |
% |
|
|
(1.9 |
)% |
|
— |
% |
|
(1.8 |
)% |
|
0.8 |
% |
International restaurants |
|
2.9 |
% |
|
8.6 |
% |
|
2.2 |
% |
|
5.8 |
% |
Total global system-wide restaurant sales growth (decline) |
|
(0.7 |
)% |
|
2.0 |
% |
|
(0.8 |
)% |
|
2.0 |
% |
Global Restaurant Unit Data
As of June 30, 2024, there were 5,883 Papa Johns restaurants operating in 49 countries and territories, as follows:
Second Quarter |
Domestic Company Owned |
|
Franchised |
|
Total |
|
International Company Owned |
|
International Franchised |
|
Total International |
|
System-wide |
||||||
Beginning - March 31, 2024 |
536 |
|
2,911 |
|
|
3,447 |
|
|
117 |
|
|
2,350 |
|
|
2,467 |
|
|
5,914 |
|
Opened |
1 |
|
9 |
|
|
10 |
|
|
— |
|
|
56 |
|
|
56 |
|
|
66 |
|
Closed |
— |
|
(10 |
) |
|
(10 |
) |
|
(43 |
) |
|
(44 |
) |
|
(87 |
) |
|
(97 |
) |
Refranchised |
— |
|
— |
|
|
— |
|
|
(41 |
) |
|
41 |
|
|
— |
|
|
— |
|
Ending - June 30, 2024 |
537 |
|
2,910 |
|
|
3,447 |
|
|
33 |
|
|
2,403 |
|
|
2,436 |
|
|
5,883 |
|
Net unit growth/(decline) |
1 |
|
(1 |
) |
|
— |
|
|
(84 |
) |
|
53 |
|
|
(31 |
) |
|
(31 |
) |
Trailing four quarters net store growth |
16 |
|
42 |
|
|
58 |
|
|
(58 |
) |
|
111 |
|
|
53 |
|
|
111 |
|
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
|
|
Six Months Ended |
||||||
(in thousands) |
|
June 30,
|
|
June 25,
|
||||
Net cash provided by operating activities |
|
$ |
41,957 |
|
|
$ |
93,735 |
|
Purchases of property and equipment |
|
|
(29,155 |
) |
|
|
(34,759 |
) |
Free cash flow |
|
$ |
12,802 |
|
|
$ |
58,976 |
|
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
The Company paid cash dividends of
Conference Call
Papa Johns will host a call with analysts today, August 8, 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, restaurant closures, labor shortages, labor cost increases, changes in management, 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 sales for the same base of restaurants for the same fiscal periods. “Comparable sales growth (decline)” represents the change in year-over-year comparable sales. “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 global system-wide restaurant sales year-over-year. Comparable sales, Comparable sales growth (decline), 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 Domestic Company-owned,
Non-GAAP Financial Measures
In addition to the results provided in accordance with
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
(In thousands, except per share amounts) |
|
June 30,
|
|
June 25,
|
|
June 30,
|
|
June 25,
|
||||||||
Operating income |
|
$ |
28,226 |
|
|
$ |
34,912 |
|
|
$ |
61,944 |
|
|
$ |
72,708 |
|
International restructuring costs (a) |
|
|
6,129 |
|
|
|
— |
|
|
|
15,652 |
|
|
|
— |
|
|
|
|
— |
|
|
|
1,308 |
|
|
|
— |
|
|
|
1,308 |
|
Other costs (c) |
|
|
4,000 |
|
|
|
661 |
|
|
|
4,000 |
|
|
|
2,017 |
|
Adjusted operating income |
|
$ |
38,355 |
|
|
$ |
36,881 |
|
|
$ |
81,596 |
|
|
$ |
76,033 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders |
|
$ |
12,243 |
|
|
$ |
17,768 |
|
|
$ |
26,879 |
|
|
$ |
40,144 |
|
International restructuring costs (a) |
|
|
6,129 |
|
|
|
— |
|
|
|
15,652 |
|
|
|
— |
|
|
|
|
— |
|
|
|
1,308 |
|
|
|
— |
|
|
|
1,308 |
|
Other costs (c) |
|
|
4,000 |
|
|
|
661 |
|
|
|
4,000 |
|
|
|
2,017 |
|
Tax effect of adjustments (d) |
|
|
(2,289 |
) |
|
|
(449 |
) |
|
|
(4,441 |
) |
|
|
(758 |
) |
Adjusted net income attributable to common shareholders |
|
$ |
20,083 |
|
|
$ |
19,288 |
|
|
$ |
42,090 |
|
|
$ |
42,711 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per common share |
|
$ |
0.37 |
|
|
$ |
0.54 |
|
|
$ |
0.82 |
|
|
$ |
1.20 |
|
International restructuring costs (a) |
|
|
0.19 |
|
|
|
— |
|
|
|
0.48 |
|
|
|
— |
|
|
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
|
|
0.04 |
|
Other costs (c) |
|
|
0.12 |
|
|
|
0.02 |
|
|
|
0.12 |
|
|
|
0.06 |
|
Tax effect of adjustments (d) |
|
|
(0.07 |
) |
|
|
(0.01 |
) |
|
|
(0.14 |
) |
|
|
(0.02 |
) |
Adjusted diluted earnings per common share |
|
$ |
0.61 |
|
|
$ |
0.59 |
|
|
$ |
1.28 |
|
|
$ |
1.28 |
|
Refer to footnotes on following page.
Footnotes to Non-GAAP Financial Measures
(a) |
Represents costs associated with the Company’s International Restructuring plan. For the three and six months ended June 30, 2024, these costs are comprised primarily of leased and fixed asset impairment charges related to store closures in the |
(b) |
Represents costs associated with repositioning the |
(c) |
For the three and six months ended June 30, 2024, represents a non-cash impairment charge related to fixed and intangible assets related to certain Domestic restaurants. For the three and six months ended June 25, 2023, represents severance and related costs associated with the transition of certain executives, recorded in General and administrative expenses. |
(d) |
The tax effect on non-GAAP adjustments was calculated by applying the marginal tax rates of |
Papa John’s International, Inc. and Subsidiaries Condensed Consolidated Balance Sheets |
||||||||
(In $ thousands, except per share amounts) |
|
June 30,
|
|
December 31,
|
||||
|
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
24,305 |
|
|
$ |
40,587 |
|
Accounts receivable, net |
|
|
93,460 |
|
|
|
104,244 |
|
Notes receivable, current portion |
|
|
4,581 |
|
|
|
5,199 |
|
Income tax receivable |
|
|
2,771 |
|
|
|
2,577 |
|
Inventories |
|
|
37,656 |
|
|
|
36,126 |
|
Prepaid expenses and other current assets |
|
|
58,762 |
|
|
|
42,285 |
|
Assets held for sale |
|
|
4,205 |
|
|
|
— |
|
Total current assets |
|
|
225,740 |
|
|
|
231,018 |
|
Property and equipment, net |
|
|
265,693 |
|
|
|
282,812 |
|
Finance lease right-of-use assets, net |
|
|
28,759 |
|
|
|
31,740 |
|
Operating lease right-of-use assets |
|
|
154,371 |
|
|
|
164,158 |
|
Notes receivable, less current portion, net |
|
|
9,915 |
|
|
|
12,346 |
|
Goodwill |
|
|
75,547 |
|
|
|
76,206 |
|
Other assets |
|
|
78,402 |
|
|
|
76,725 |
|
Total assets |
|
$ |
838,427 |
|
|
$ |
875,005 |
|
|
|
|
|
|
||||
Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
63,731 |
|
|
$ |
74,949 |
|
Income and other taxes payable |
|
|
6,810 |
|
|
|
17,948 |
|
Accrued expenses and other current liabilities |
|
|
149,673 |
|
|
|
158,167 |
|
Current deferred revenue |
|
|
19,941 |
|
|
|
20,427 |
|
Current finance lease liabilities |
|
|
7,815 |
|
|
|
9,029 |
|
Current operating lease liabilities |
|
|
24,874 |
|
|
|
24,076 |
|
Current portion of long-term debt |
|
|
2,375 |
|
|
|
— |
|
Total current liabilities |
|
|
275,219 |
|
|
|
304,596 |
|
Deferred revenue |
|
|
19,011 |
|
|
|
20,366 |
|
Long-term finance lease liabilities |
|
|
22,382 |
|
|
|
24,144 |
|
Long-term operating lease liabilities |
|
|
144,569 |
|
|
|
151,050 |
|
Long-term debt, less current portion, net |
|
|
758,861 |
|
|
|
757,422 |
|
Other long-term liabilities |
|
|
63,550 |
|
|
|
60,192 |
|
Total liabilities |
|
|
1,283,592 |
|
|
|
1,317,770 |
|
|
|
|
|
|
||||
Redeemable noncontrolling interests |
|
|
975 |
|
|
|
851 |
|
|
|
|
|
|
||||
Stockholders’ deficit: |
|
|
|
|
||||
Common stock ( |
|
|
493 |
|
|
|
492 |
|
Additional paid-in capital |
|
|
446,547 |
|
|
|
452,290 |
|
Accumulated other comprehensive loss |
|
|
(7,358 |
) |
|
|
(7,803 |
) |
Retained earnings |
|
|
215,800 |
|
|
|
219,027 |
|
Treasury stock (16,658 shares at June 30, 2024 and 16,747 shares at December 31, 2023, at cost) |
|
|
(1,117,140 |
) |
|
|
(1,123,098 |
) |
Total stockholders’ deficit |
|
|
(461,658 |
) |
|
|
(459,092 |
) |
Noncontrolling interests in subsidiaries |
|
|
15,518 |
|
|
|
15,476 |
|
Total Stockholders’ deficit |
|
|
(446,140 |
) |
|
|
(443,616 |
) |
Total Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
$ |
838,427 |
|
|
$ |
875,005 |
|
Papa John’s International, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
(In thousands, except per share amounts) |
|
June 30,
|
|
June 25,
|
|
June 30,
|
|
June 25,
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Domestic Company-owned restaurant sales |
|
$ |
173,207 |
|
|
$ |
175,780 |
|
|
$ |
349,431 |
|
|
$ |
355,646 |
|
|
|
|
34,409 |
|
|
|
34,711 |
|
|
|
70,106 |
|
|
|
70,783 |
|
|
|
|
198,197 |
|
|
|
206,980 |
|
|
|
401,484 |
|
|
|
419,546 |
|
International revenues |
|
|
39,701 |
|
|
|
34,608 |
|
|
|
80,409 |
|
|
|
66,071 |
|
Other revenues |
|
|
62,380 |
|
|
|
62,451 |
|
|
|
120,380 |
|
|
|
129,533 |
|
Total revenues |
|
|
507,894 |
|
|
|
514,530 |
|
|
|
1,021,810 |
|
|
|
1,041,579 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||
Operating costs (excluding depreciation and amortization shown separately below): |
|
|
|
|
|
|
|
|
||||||||
Domestic Company-owned restaurant expenses |
|
|
138,033 |
|
|
|
143,705 |
|
|
|
276,786 |
|
|
|
291,489 |
|
|
|
|
182,299 |
|
|
|
190,468 |
|
|
|
367,498 |
|
|
|
386,883 |
|
International expenses |
|
|
27,077 |
|
|
|
20,435 |
|
|
|
55,423 |
|
|
|
37,746 |
|
Other expenses |
|
|
56,951 |
|
|
|
58,996 |
|
|
|
108,718 |
|
|
|
120,074 |
|
General and administrative expenses |
|
|
57,714 |
|
|
|
50,324 |
|
|
|
116,173 |
|
|
|
102,268 |
|
Depreciation and amortization |
|
|
17,594 |
|
|
|
15,690 |
|
|
|
35,268 |
|
|
|
30,411 |
|
Total costs and expenses |
|
|
479,668 |
|
|
|
479,618 |
|
|
|
959,866 |
|
|
|
968,871 |
|
Operating income |
|
|
28,226 |
|
|
|
34,912 |
|
|
|
61,944 |
|
|
|
72,708 |
|
Net interest expense |
|
|
(10,896 |
) |
|
|
(11,275 |
) |
|
|
(21,959 |
) |
|
|
(20,296 |
) |
Income before income taxes |
|
|
17,330 |
|
|
|
23,637 |
|
|
|
39,985 |
|
|
|
52,412 |
|
Income tax expense |
|
|
4,794 |
|
|
|
5,778 |
|
|
|
12,535 |
|
|
|
12,007 |
|
Net income before attribution to noncontrolling interests |
|
|
12,536 |
|
|
|
17,859 |
|
|
|
27,450 |
|
|
|
40,405 |
|
Net income attributable to noncontrolling interests |
|
|
(293 |
) |
|
|
(91 |
) |
|
|
(571 |
) |
|
|
(261 |
) |
Net income attributable to the Company |
|
$ |
12,243 |
|
|
$ |
17,768 |
|
|
$ |
26,879 |
|
|
$ |
40,144 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share |
|
$ |
0.37 |
|
|
$ |
0.55 |
|
|
$ |
0.82 |
|
|
$ |
1.20 |
|
Diluted earnings per common share |
|
$ |
0.37 |
|
|
$ |
0.54 |
|
|
$ |
0.82 |
|
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares outstanding |
|
|
32,730 |
|
|
|
32,563 |
|
|
|
32,688 |
|
|
|
33,359 |
|
Diluted weighted average common shares outstanding |
|
|
32,853 |
|
|
|
32,650 |
|
|
|
32,871 |
|
|
|
33,487 |
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share |
|
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
0.92 |
|
|
$ |
0.84 |
|
Papa John’s International, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
Six Months Ended |
||||||
(In $ thousands) |
|
June 30,
|
|
June 25,
|
||||
Operating activities |
|
|
|
|
||||
Net income before attribution to noncontrolling interests |
|
$ |
27,450 |
|
|
$ |
40,405 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Provision for allowance for credit losses on accounts and notes receivable |
|
|
2,397 |
|
|
|
595 |
|
Depreciation and amortization |
|
|
35,268 |
|
|
|
30,411 |
|
Deferred income taxes |
|
|
2,812 |
|
|
|
3,664 |
|
Stock-based compensation expense |
|
|
2,545 |
|
|
|
8,498 |
|
Refranchising and impairment losses |
|
|
14,713 |
|
|
|
— |
|
Loss on disposal of property and equipment |
|
|
965 |
|
|
|
— |
|
Other |
|
|
800 |
|
|
|
(452 |
) |
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
||||
Accounts receivable |
|
|
9,974 |
|
|
|
4,299 |
|
Income tax receivable |
|
|
(203 |
) |
|
|
6,683 |
|
Inventories |
|
|
(1,748 |
) |
|
|
4,109 |
|
Prepaid expenses and other current assets |
|
|
(4,358 |
) |
|
|
46 |
|
Other assets and liabilities |
|
|
(5,788 |
) |
|
|
140 |
|
Accounts payable |
|
|
(11,364 |
) |
|
|
(8,174 |
) |
Income and other taxes payable |
|
|
(10,957 |
) |
|
|
(514 |
) |
Accrued expenses and other current liabilities |
|
|
(18,710 |
) |
|
|
7,203 |
|
Deferred revenue |
|
|
(1,839 |
) |
|
|
(3,178 |
) |
Net cash provided by operating activities |
|
|
41,957 |
|
|
|
93,735 |
|
Investing activities |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(29,155 |
) |
|
|
(34,759 |
) |
Notes issued |
|
|
(153 |
) |
|
|
(4,374 |
) |
Repayments of notes issued |
|
|
1,794 |
|
|
|
3,224 |
|
Proceeds from dispositions, net of cash transferred |
|
|
1,495 |
|
|
|
— |
|
Other |
|
|
2,178 |
|
|
|
182 |
|
Net cash used in investing activities |
|
|
(23,841 |
) |
|
|
(35,727 |
) |
Financing activities |
|
|
|
|
||||
Net proceeds of revolving credit facilities |
|
|
3,024 |
|
|
|
186,529 |
|
Proceeds from exercise of stock options |
|
|
933 |
|
|
|
682 |
|
Acquisition of Company common stock |
|
|
— |
|
|
|
(210,348 |
) |
Dividends paid to common stockholders |
|
|
(30,212 |
) |
|
|
(28,485 |
) |
Tax payments for equity award issuances |
|
|
(3,330 |
) |
|
|
(6,108 |
) |
Distributions to noncontrolling interests |
|
|
(405 |
) |
|
|
(323 |
) |
Principal payments on finance leases |
|
|
(4,796 |
) |
|
|
(3,669 |
) |
Other |
|
|
358 |
|
|
|
102 |
|
Net cash used in financing activities |
|
|
(34,428 |
) |
|
|
(61,620 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
30 |
|
|
|
11 |
|
Change in cash and cash equivalents |
|
|
(16,282 |
) |
|
|
(3,601 |
) |
Cash and cash equivalents at beginning of period |
|
|
40,587 |
|
|
|
47,373 |
|
Cash and cash equivalents at end of period |
|
$ |
24,305 |
|
|
$ |
43,772 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806898046/en/
Papa Johns Investor Relations
investor_relations@papajohns.com
Source: Papa John’s International, Inc.
FAQ
What were Papa Johns' (PZZA) Q2 2024 total revenues?
How did Papa Johns' (PZZA) North America comparable sales perform in Q2 2024?
What was Papa Johns' (PZZA) Adjusted diluted earnings per share for Q2 2024?
How many net unit closures did Papa Johns (PZZA) experience in Q2 2024?
What was Papa Johns' (PZZA) global system-wide restaurant sales for Q2 2024?
