Papa John's North America Comparable Sales Growth Plunged to 1.9%

Scott Peters
06 May, 2022
New York City

Papa John's International said first quarter 2022 revenues increased 6% to $542.7 million but net income declined 68% to $10.5 million. 

Diluted earnings per share fell to 29 cents from 82 cents a year ago. 

System-wide restaurant sales increased 5.2% to $1.3 billion and more than half of sales growth was driven by unit sales increase and the rest was driven by price hikes. 

Comparable sales in North America increased 1.9% and 0.8% at international locations following prior year gains of 26.2% and 23.2% respectively. 

Comparable sales growth turned negative and fell 1.2% at domestic restaurants owned by the company from a 23.3% surge a year ago. 

North American franchised restaurant comparable sales growth declined to 2.8% from 27.1% a year ago. 

In the last four quarters, the company opened 188 restaurants in international locations and 56 in North America of which 19 restaurants in the U.S. locations owned by the company and 39 franchisee owned.  

In the last quarter, the company opened net new 62 restaurants and revised higher its annual target range between 280 and 320 from the previous range of 260 to 300. 

The company also signed a deal with China-based FountainVest Partners to open at least 1,350 by 2040. 

The company also agreed to sell its majority stake in a joint venture with 90 restaurants to a franchisee Sun Holdings with 100 locations. 

Guidance and Outlook 

Papa Johns is now providing a new multi-year target of 6% to 8% annual net unit growth worldwide for fiscal 2023 through 2025. 

Company and Stock 

Papa John's International Inc is headquartered in Louisville, Kentucky and operates 5,524 restaurants in 49 countries. There are about 3,354 restaurants in North America and 2,170 located at international locations. 

Papa John's stock fell 6% to $89.82 after the release of earnings today and the stock has declined 34.8% in the year-so-far.