Papa John’s: Announces Second Quarter 2022 Financial Results

Louisville / KY. (pj) Papa John’s International Inc., one of the world’s largest pizza delivery companies, announced financial results for the second quarter ended June 26, 2022. Highlights:

• Total revenues increased 1.5 percent to USD 522.7 million in the second quarter versus prior year second quarter. Revenues increased 5.2 percent excluding the impact of refranchising 90 restaurants in the first quarter of 2022.
• Comparable sales increased 0.9 percent in North America and decreased 8.0 percent Internationally, lapping prior year gains of 5.2 percent and 21.2 percent, respectively.
• Global system-wide restaurant sales were USD 1.2 billion, a 2.6 percent1 increase over the prior year second quarter.
• 47 net unit openings in the second quarter driven by International openings; expected net unit openings in 2022 remain 280 to 320 units.
• Earnings per diluted share of USD 0.70; non-GAAP adjusted diluted earnings per share of USD 0.74 excluding Special items, compared with USD 0.93 a year ago.
• Announced 20 percent increase in annual dividend rate to USD 1.68 per share; declared third quarter dividend of USD 0.42 per share.

«Papa Johns delivered a 12th consecutive quarter of positive North American comparable sales in the second quarter, building on gains of more than 30 percent over the two years prior,» said President and CEO Rob Lynch. «Our momentum over the past three years is the direct result of our differentiated brand, menu innovations and digital investments which focus on delivering premium value for our customers. The proven agility of our business model, our scale and our data advantage give us confidence in our ability to sustain positive North American comps in the second half of this year and into the future as we continue to navigate a dynamic macroeconomic environment.»

Lower year-over-year net income and earnings per diluted share in the second quarter primarily reflected further acceleration in commodity costs and labor inflation, in addition to lower international sales. The decrease in international sales was largely attributable to softening economic conditions in the UK.

«Like companies across our industry and the global economy, we are experiencing high inflation coupled with lapping economic stimulus a year ago,» continued Lynch. «While we expect these headwinds to persist into the second half of 2022, the targeted actions we are taking today are focused on optimizing results in the near term, while leaning into our differentiated strategy and securing our growing market share position for the long term. When current headwinds eventually normalize, we will be in a significantly better position for long-term growth and margin accretion.»

Based on its resilient cash flow profile and strong balance sheet, the Company announced a 20 percent increase in the annual dividend rate to USD 1.68 per share. During the second quarter, Papa Johns also repurchased approximately USD 42.8 million of its outstanding shares under its current share repurchase authorization.

«The foundation of our strategy and success remains in providing better value to our customers, our franchisees and our team members. We will continue driving long-term shareholder value through winning innovations, accelerating unit growth, increasing operations productivity, and making strategic capital investments,» concluded Lynch.

For additional information please read the Company’s PDF file below (360 KB):

20220804-PAPA-JOHNS-Q2-2022.