Papa Johns Announces First Quarter 2025 Financial Results
Highlights
-
North America comparable sales were down 3% from a year ago asDomestic Company -owned restaurants were down 5% andNorth America franchised restaurants were down 2%; International comparable sales were up 3% compared with the prior year quarter. -
Opened 47 new restaurants systemwide, comprised of 18 restaurant openings in
North America and 29 restaurant openings in International markets. -
Global system-wide restaurant sales were
$1.22 billion , a 1%(a) increase compared with the prior year first quarter, as higher International comparable sales and trailing twelve-month net restaurant growth were partially offset by lower North American comparable sales. -
Total revenues of
$518 million were up 1% compared with the prior year quarter as higher Commissary and Advertising Funds revenues were partially offset by lower revenues at our Company-owned restaurants. -
Net income was
$9 million compared with$15 million in the prior year first quarter and adjusted EBITDA(b) was$50 million compared with$61 million in the prior year quarter. -
Diluted earnings per common share was
$0.27 compared with$0.44 in the prior year quarter; adjusted diluted earnings per common share(b) was$0.36 compared with$0.67 last year.
CEO Commentary
“We are pleased with our continued progress in the first quarter to advance our transformation as we execute against our five key priorities. Our strategic investments in marketing and technology are driving early momentum in the business, and customers are responding positively to our strengthened value proposition and enhanced digital and loyalty experiences, as evidenced by sequential improvement in comparable sales and transactions,” said
“First quarter results were in line with our expectations, and we are confident we have the right team and strategy to grow restaurant sales, generate sustainable profits throughout the system, and build long-term value for all of our stakeholders,” Penegor added.
|
(a) Growth rate excludes the impact of foreign currency. |
|
(b) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation to the most comparable US GAAP measures. |
|
Financial Highlights |
||||||||||||
|
|
|
Three Months Ended |
||||||||||
|
(In thousands, except per share amounts) |
|
|
|
|
|
Increase (Decrease) |
||||||
|
Total revenues |
|
$ |
518,309 |
|
$ |
513,916 |
|
$ |
4,393 |
|
||
|
Net income |
|
$ |
9,343 |
|
|
$ |
14,914 |
|
|
$ |
(5,571 |
) |
|
Adjusted EBITDA(a) |
|
$ |
49,624 |
|
|
$ |
60,565 |
|
|
$ |
(10,941 |
) |
|
Diluted earnings per common share |
|
$ |
0.27 |
|
|
$ |
0.44 |
|
|
$ |
(0.17 |
) |
|
Adjusted diluted earnings per common share(a) |
|
$ |
0.36 |
|
|
$ |
0.67 |
|
|
$ |
(0.31 |
) |
Results for the first three months of 2025 are not directly comparable with the first three months of 2024, as year-over-year comparisons are impacted by the
First Quarter 2025 Results
Revenue:
Total revenues of
The above increases were partially offset by a
System-wide sales:
For the first quarter of 2025, Global system-wide restaurant sales were
Net income:
First quarter Net income was
Adjusted EBITDA:
Adjusted EBITDA(a) was
Additionally, the variance between Net income and adjusted EBITDA was due to Non-GAAP adjustments of
Earnings per share:
Diluted earnings per common share was
Refer to 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
|
(a) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation to the most comparable US GAAP measures. |
2025 Outlook
The Company is reiterating its 2025 annual guidance for the following metrics:
- System-wide sales: up 2% to 5%
-
North America comparable sales: Flat to up 2% - International comparable sales: Flat to up 2%
-
Restaurant development:
North America : 85 to 115 gross openings- International: 180 to 200 gross openings
-
Adjusted EBITDA (as defined below):
$200 million to$220 million -
Depreciation & amortization:
$70 million to$75 million -
Interest expense:
$40 million to$45 million - Tax rate: 28% to 32%
-
Capital expenditures:
$75 million to$85 million
Adjusted EBITDA represents Net income before Net interest expense, Income tax expense, Depreciation and amortization, Stock-based compensation expense, and other adjustments that vary from period to period in accordance with the Company’s Non-GAAP policy. The Company believes adjusted EBITDA is a meaningful measure as it is widely used by analysts and investors to value the Company and its restaurants on a consistent basis. Adjusted EBITDA is not a term defined by GAAP, and is not intended to be a substitute for operating income, net income, or cash flows from operating activities, as defined under generally accepted accounting principles. As a result, our measure of adjusted EBITDA might not be comparable to similarly titled measures used by other companies.
This release includes forward-looking projections for certain non-GAAP financial measures, including adjusted EBITDA. The Company excludes certain expenses and benefits from adjusted EBITDA that, due to the uncertainty and variability of the nature and amount of those expenses and benefits, the Company is unable to, without unreasonable effort or expense, provide a reconciliation to Net income of those projected measures.
Global Restaurant Sales Information
Global restaurant and comparable sales information for the three months ended
|
|
|
Three Months Ended |
||||
|
Amounts below exclude the impact of foreign currency |
|
|
|
|
||
|
Comparable sales growth (decline): |
|
|
|
|
||
|
|
|
(4.6 |
)% |
|
(3.0 |
)% |
|
|
|
(2.3 |
)% |
|
(1.5 |
)% |
|
|
|
(2.7 |
)% |
|
(1.8 |
)% |
|
International restaurants |
|
3.2 |
% |
|
(2.6 |
)% |
|
Total comparable sales decline |
|
(1.3 |
)% |
|
(2.0 |
)% |
|
System-wide restaurant sales growth (decline): |
|
|
|
|
||
|
|
|
(3.7 |
)% |
|
(2.0 |
)% |
|
|
|
(0.4 |
)% |
|
(1.6 |
)% |
|
|
|
(1.0 |
)% |
|
(1.7 |
)% |
|
International restaurants (a) |
|
5.7 |
% |
|
1.6 |
% |
|
Total global system-wide restaurant sales growth (decline) (a) |
|
0.6 |
% |
|
(0.9 |
)% |
As of
|
First Quarter |
|
|
|
|
|
|
|
|
International Franchised |
|
|
|
System-wide |
|||||||
|
Beginning - |
539 |
|
|
2,975 |
|
|
3,514 |
|
|
13 |
|
|
2,503 |
|
|
2,516 |
|
|
6,030 |
|
|
Opened |
1 |
|
|
17 |
|
|
18 |
|
|
— |
|
|
29 |
|
|
29 |
|
|
47 |
|
|
Closed |
(1 |
) |
|
(15 |
) |
|
(16 |
) |
|
— |
|
|
(42 |
) |
|
(42 |
) |
|
(58 |
) |
|
Refranchised |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Ending - |
539 |
|
|
2,977 |
|
|
3,516 |
|
|
13 |
|
|
2,490 |
|
|
2,503 |
|
|
6,019 |
|
|
Net restaurant growth/(decline) |
— |
|
|
2 |
|
|
2 |
|
|
— |
|
|
(13 |
) |
|
(13 |
) |
|
(11 |
) |
|
Trailing four quarters net restaurant growth |
3 |
|
|
66 |
|
|
69 |
|
|
(104 |
) |
|
140 |
|
|
36 |
|
|
105 |
|
|
(a) System-wide sales for the three months ended |
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
|
|
|
Three Months Ended |
||||||
|
(in thousands) |
|
|
|
|
||||
|
Net cash provided by operating activities |
|
$ |
31,336 |
|
|
$ |
11,987 |
|
|
Purchases of property and equipment |
|
|
(12,231 |
) |
|
|
(13,058 |
) |
|
Free cash flow |
|
$ |
19,105 |
|
|
$ |
(1,071 |
) |
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
About
Papa John’s
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, depreciation and amortization, interest expenses, tax rates, system-wide sales, adjusted EBITDA, the current economic environment, industry trends, consumer behavior and preferences, 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, digital and technology 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, 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
These and other risks, uncertainties and assumptions that are involved in our forward-looking statements are discussed in detail in “Part I. Item 1A. – Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended
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.
We believe
Financial Statement Updates
The Company has implemented several financial statement changes to evolve and modernize our financial statements and footnotes to increase transparency and better reflect management’s key performance metrics. Financial results for the three months ended
Additionally, during the year ended
Non-GAAP Financial Measures
In addition to the results provided in accordance with
Reconciliation of GAAP Financial Results to Non-GAAP Financial Measures
|
|
|
Three Months Ended |
||||||
|
(In thousands, except per share amounts) |
|
|
|
|
||||
|
Net income |
|
$ |
9,343 |
|
|
$ |
14,914 |
|
|
Income tax expense |
|
|
4,543 |
|
|
|
7,741 |
|
|
Net interest expense |
|
|
10,079 |
|
|
|
11,063 |
|
|
Depreciation and amortization |
|
|
18,343 |
|
|
|
17,674 |
|
|
International restructuring costs (a) |
|
|
2,180 |
|
|
|
9,543 |
|
|
Net expenses due to natural disasters (b) |
|
|
892 |
|
|
|
— |
|
|
Strategic initiative costs (c) |
|
|
575 |
|
|
|
— |
|
|
Stock-based compensation expense |
|
|
3,669 |
|
|
|
(370 |
) |
|
Adjusted EBITDA |
|
$ |
49,624 |
|
|
$ |
60,565 |
|
|
|
|
|
|
|
||||
|
Net income attributable to common shareholders |
|
$ |
9,028 |
|
|
$ |
14,636 |
|
|
International restructuring costs (a) |
|
|
2,135 |
|
|
|
9,523 |
|
|
Net expenses due to natural disasters (b) |
|
|
892 |
|
|
|
— |
|
|
Strategic initiative costs (c) |
|
|
575 |
|
|
|
— |
|
|
Tax effect of adjustments (d) |
|
|
(818 |
) |
|
|
(2,152 |
) |
|
Adjusted net income attributable to common shareholders |
|
$ |
11,812 |
|
|
$ |
22,007 |
|
|
|
|
|
|
|
||||
|
Diluted earnings per common share |
|
$ |
0.27 |
|
|
$ |
0.44 |
|
|
International restructuring costs (a) |
|
|
0.06 |
|
|
|
0.29 |
|
|
Net expenses due to natural disasters (b) |
|
|
0.03 |
|
|
|
— |
|
|
Strategic initiative costs (c) |
|
|
0.02 |
|
|
|
— |
|
|
Tax effect of adjustments (d) |
|
|
(0.02 |
) |
|
|
(0.06 |
) |
|
Adjusted diluted earnings per common share |
|
$ |
0.36 |
|
|
$ |
0.67 |
|
Footnotes to Non-GAAP Financial Measures
|
(a) |
Represents costs associated with the Company’s international transformation initiatives. For the three months ended |
|
(b) |
Represents expenses incurred, net of expected insurance recoveries, resulting from a tornado that struck our Texas QC Center in |
|
(c) |
Represents costs associated with project-based strategic initiatives. We consider these costs to be separate and distinct from other professional fees incurred in the ordinary course of business and not reflective of the ongoing costs to operate our business. |
|
(d) |
The tax effect on non-GAAP adjustments was calculated by applying the marginal tax rates of 22.7% and 22.6% for the three months ended |
|
Papa John’s Condensed Consolidated Balance Sheets |
||||||||
|
(In thousands, except per share amounts) |
|
|
|
|
||||
|
|
|
(Unaudited) |
|
|
||||
|
Assets |
|
|
|
|
||||
|
Current assets: |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
44,012 |
|
|
$ |
37,955 |
|
|
Accounts receivable, net |
|
|
99,908 |
|
|
|
101,677 |
|
|
Notes receivable, current portion |
|
|
4,978 |
|
|
|
4,928 |
|
|
Income tax receivable |
|
|
2,796 |
|
|
|
2,214 |
|
|
Inventories |
|
|
37,195 |
|
|
|
35,245 |
|
|
Prepaid expenses and other current assets |
|
|
53,226 |
|
|
|
48,586 |
|
|
Total current assets |
|
|
242,115 |
|
|
|
230,605 |
|
|
Property and equipment, net |
|
|
271,952 |
|
|
|
273,272 |
|
|
Finance lease right-of-use assets, net |
|
|
42,091 |
|
|
|
28,761 |
|
|
Operating lease right-of-use assets |
|
|
177,885 |
|
|
|
184,425 |
|
|
Notes receivable, less current portion, net |
|
|
7,174 |
|
|
|
8,867 |
|
|
|
|
|
75,916 |
|
|
|
75,460 |
|
|
Other assets |
|
|
80,955 |
|
|
|
87,562 |
|
|
Total assets |
|
$ |
898,088 |
|
|
$ |
888,952 |
|
|
|
|
|
|
|
||||
|
Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
|
|
|
||||
|
Current liabilities: |
|
|
|
|
||||
|
Accounts payable |
|
$ |
68,939 |
|
|
$ |
61,842 |
|
|
Income and other taxes payable |
|
|
14,853 |
|
|
|
11,987 |
|
|
Accrued expenses and other current liabilities |
|
|
149,114 |
|
|
|
155,579 |
|
|
Current deferred revenue |
|
|
13,703 |
|
|
|
15,519 |
|
|
Current finance lease liabilities |
|
|
10,069 |
|
|
|
7,280 |
|
|
Current operating lease liabilities |
|
|
26,221 |
|
|
|
25,756 |
|
|
Total current liabilities |
|
|
282,899 |
|
|
|
277,963 |
|
|
Deferred revenue |
|
|
20,324 |
|
|
|
21,287 |
|
|
Long-term finance lease liabilities |
|
|
33,569 |
|
|
|
22,885 |
|
|
Long-term operating lease liabilities |
|
|
172,463 |
|
|
|
173,557 |
|
|
Long-term debt, less current portion, net |
|
|
741,933 |
|
|
|
741,650 |
|
|
Other long-term liabilities |
|
|
62,839 |
|
|
|
64,923 |
|
|
Total liabilities |
|
|
1,314,027 |
|
|
|
1,302,265 |
|
|
|
|
|
|
|
||||
|
Redeemable noncontrolling interests |
|
|
870 |
|
|
|
903 |
|
|
|
|
|
|
|
||||
|
Stockholders’ deficit: |
|
|
|
|
||||
|
Common stock ( |
|
|
493 |
|
|
|
493 |
|
|
Additional paid-in capital |
|
|
449,625 |
|
|
|
452,449 |
|
|
Accumulated other comprehensive loss |
|
|
(7,540 |
) |
|
|
(8,456 |
) |
|
Retained earnings |
|
|
235,794 |
|
|
|
241,717 |
|
|
|
|
|
(1,110,306 |
) |
|
|
(1,115,729 |
) |
|
Total stockholders’ deficit |
|
|
(431,934 |
) |
|
|
(429,526 |
) |
|
Noncontrolling interests in subsidiaries |
|
|
15,125 |
|
|
|
15,310 |
|
|
Total Stockholders’ deficit |
|
|
(416,809 |
) |
|
|
(414,216 |
) |
|
Total Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit |
|
$ |
898,088 |
|
|
$ |
888,952 |
|
|
Papa John’s Condensed Consolidated Statements of Operations |
||||||||
|
(Unaudited) |
|
Three Months Ended |
||||||
|
(In thousands, except per share amounts) |
|
|
|
|
||||
|
Revenues: |
|
|
|
|
||||
|
Company-owned restaurant sales |
|
$ |
173,881 |
|
|
$ |
191,251 |
|
|
Franchise royalties and fees |
|
|
48,056 |
|
|
|
47,153 |
|
|
Commissary revenues |
|
|
228,941 |
|
|
|
217,512 |
|
|
Other revenues |
|
|
23,757 |
|
|
|
20,935 |
|
|
Advertising funds revenue |
|
|
43,674 |
|
|
|
37,065 |
|
|
Total revenues |
|
|
518,309 |
|
|
|
513,916 |
|
|
Costs and expenses: |
|
|
|
|
||||
|
Cost of sales |
|
|
366,496 |
|
|
|
367,666 |
|
|
General and administrative expenses |
|
|
65,167 |
|
|
|
57,877 |
|
|
Depreciation and amortization |
|
|
18,343 |
|
|
|
17,674 |
|
|
Advertising funds expense |
|
|
44,338 |
|
|
|
36,981 |
|
|
Total costs and expenses |
|
|
494,344 |
|
|
|
480,198 |
|
|
Operating income |
|
|
23,965 |
|
|
|
33,718 |
|
|
Net interest expense |
|
|
(10,079 |
) |
|
|
(11,063 |
) |
|
Income before income taxes |
|
|
13,886 |
|
|
|
22,655 |
|
|
Income tax expense (a) |
|
|
(4,543 |
) |
|
|
(7,741 |
) |
|
Net income |
|
|
9,343 |
|
|
|
14,914 |
|
|
Net income attributable to noncontrolling interests |
|
|
(121 |
) |
|
|
(278 |
) |
|
Net income attributable to the Company |
|
$ |
9,222 |
|
|
$ |
14,636 |
|
| Net income attributable to common shareholders |
$ |
9,028 |
$ |
14,636 |
||||
|
|
|
|
|
|
||||
|
Basic earnings per common share |
|
$ |
0.28 |
|
|
$ |
0.45 |
|
|
Diluted earnings per common share |
|
$ |
0.27 |
|
|
$ |
0.44 |
|
|
|
|
|
|
|
||||
|
Basic weighted average common shares outstanding |
|
|
32,778 |
|
|
|
32,644 |
|
|
Diluted weighted average common shares outstanding |
|
|
32,920 |
|
|
|
32,909 |
|
|
___________________________________ |
|
|
(a) |
We have changed the signage of Income tax expense from the historic presentation for consistency purposes. |
|
Papa John’s Condensed Consolidated Statements of Cash Flows |
||||||||
|
(Unaudited) |
|
Three Months Ended |
||||||
|
(In thousands) |
|
|
|
|
||||
|
Operating activities |
|
|
|
|
||||
|
Net income |
|
$ |
9,343 |
|
|
$ |
14,914 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
|
Provision for allowance for credit losses on accounts and notes receivable |
|
|
1,712 |
|
|
|
604 |
|
|
Depreciation and amortization |
|
|
18,343 |
|
|
|
17,674 |
|
|
Deferred income taxes |
|
|
1,157 |
|
|
|
532 |
|
|
Stock-based compensation expense |
|
|
3,669 |
|
|
|
(370 |
) |
|
Impairment loss |
|
|
6,308 |
|
|
|
7,554 |
|
|
Loss on disposal of property and equipment |
|
|
151 |
|
|
|
688 |
|
|
Other |
|
|
(97 |
) |
|
|
302 |
|
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
||||
|
Accounts receivable |
|
|
1,344 |
|
|
|
5,750 |
|
|
Income tax receivable |
|
|
(541 |
) |
|
|
660 |
|
|
Inventories |
|
|
(1,881 |
) |
|
|
(1,981 |
) |
|
Prepaid expenses and other current assets |
|
|
(4,854 |
) |
|
|
(2,252 |
) |
|
Other assets and liabilities |
|
|
(2,591 |
) |
|
|
1,873 |
|
|
Accounts payable |
|
|
5,242 |
|
|
|
(14,546 |
) |
|
Income and other taxes payable |
|
|
3,144 |
|
|
|
4,718 |
|
|
Accrued expenses and other current liabilities |
|
|
(11,911 |
) |
|
|
(18,166 |
) |
|
Deferred revenue |
|
|
(2,794 |
) |
|
|
(1,284 |
) |
|
Advertising fund assets and liabilities |
|
|
5,592 |
|
|
|
(4,683 |
) |
|
Net cash provided by operating activities |
|
|
31,336 |
|
|
|
11,987 |
|
|
Investing activities |
|
|
|
|
||||
|
Purchases of property and equipment |
|
|
(12,231 |
) |
|
|
(13,058 |
) |
|
Notes issued |
|
|
— |
|
|
|
(154 |
) |
|
Repayments of notes issued |
|
|
978 |
|
|
|
886 |
|
|
Proceeds from investments |
|
|
4,739 |
|
|
|
2,275 |
|
|
Other |
|
|
(569 |
) |
|
|
(101 |
) |
|
Net cash used in investing activities |
|
|
(7,083 |
) |
|
|
(10,152 |
) |
|
Financing activities |
|
|
|
|
||||
|
Net (repayments of) proceeds from revolving credit facilities |
|
|
(196,838 |
) |
|
|
5,300 |
|
|
Proceeds from term loan |
|
|
200,000 |
|
|
|
— |
|
|
Debt issuance costs |
|
|
(2,991 |
) |
|
|
— |
|
|
Proceeds from exercise of stock options |
|
|
— |
|
|
|
840 |
|
|
Dividends paid to common stockholders |
|
|
(15,174 |
) |
|
|
(15,068 |
) |
|
Tax payments for equity award issuances |
|
|
(1,120 |
) |
|
|
(3,192 |
) |
|
Distributions to noncontrolling interests |
|
|
(339 |
) |
|
|
(231 |
) |
|
Principal payments on finance leases |
|
|
(2,392 |
) |
|
|
(2,433 |
) |
|
Other |
|
|
287 |
|
|
|
182 |
|
|
Net cash used in financing activities |
|
|
(18,567 |
) |
|
|
(14,602 |
) |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
371 |
|
|
|
(52 |
) |
|
Change in cash and cash equivalents |
|
|
6,057 |
|
|
|
(12,819 |
) |
|
Cash and cash equivalents at beginning of period |
|
|
37,955 |
|
|
|
40,587 |
|
|
Cash and cash equivalents at end of period |
|
$ |
44,012 |
|
|
$ |
27,768 |
|
|
Papa John’s Segment Information |
||||||||||||
|
The following tables present the operating results of our segments. We have four reportable segments: |
||||||||||||
|
|
|
Three Months Ended |
||||||||||
|
(in thousands) |
|
|
|
NA Franchising |
|
NA Commissaries |
|
International |
||||
|
Revenues from external customers |
|
$ |
170,795 |
|
$ |
35,552 |
|
$ |
212,918 |
|
$ |
39,111 |
|
Intersegment revenues |
|
|
— |
|
|
1,259 |
|
|
51,458 |
|
|
— |
|
Segment revenue |
|
$ |
170,795 |
|
$ |
36,811 |
|
$ |
264,376 |
|
$ |
39,111 |
|
|
|
|
|
|
|
|
|
|
||||
|
Less segment expenses (a): |
|
|
|
|
|
|
|
|
||||
|
Cost of sales |
|
$ |
155,013 |
|
$ |
— |
|
$ |
235,731 |
|
$ |
19,785 |
|
General & administrative |
|
|
10,750 |
|
|
9,563 |
|
|
9,292 |
|
|
8,844 |
|
Advertising funds expense |
|
|
— |
|
|
— |
|
|
— |
|
|
5,101 |
|
Segment adjusted EBITDA |
|
$ |
5,032 |
|
$ |
27,248 |
|
$ |
19,353 |
|
$ |
5,381 |
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Three Months Ended |
||||||||||
|
(in thousands) |
|
|
|
NA Franchising |
|
NA Commissaries |
|
International |
||||
|
Revenues from external customers |
|
$ |
176,224 |
|
$ |
35,697 |
|
$ |
203,287 |
|
$ |
46,673 |
|
Intersegment revenues |
|
|
— |
|
|
1,049 |
|
|
49,267 |
|
|
— |
|
Segment revenue |
|
$ |
176,224 |
|
$ |
36,746 |
|
$ |
252,554 |
|
$ |
46,673 |
|
|
|
|
|
|
|
|
|
|
||||
|
Less segment expenses (a): |
|
|
|
|
|
|
|
|
||||
|
Cost of sales |
|
$ |
151,106 |
|
$ |
— |
|
$ |
226,287 |
|
$ |
30,855 |
|
General & administrative |
|
|
10,180 |
|
|
8,238 |
|
|
9,091 |
|
|
8,739 |
|
Advertising funds expense |
|
|
— |
|
|
— |
|
|
— |
|
|
2,886 |
|
Segment adjusted EBITDA |
|
$ |
14,938 |
|
$ |
28,508 |
|
$ |
17,176 |
|
$ |
4,193 |
|
___________________________________ |
|
|
(a) |
Segment expenses excludes depreciation and amortization, stock-based compensation expense, and certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business. |
|
Papa John’s Supplemental Information - All Other |
||||||
|
in thousands, unaudited |
|
Three Months Ended |
||||
|
All Other (a) |
|
|
|
|
||
|
Revenues from external customers |
|
$ |
59,933 |
|
$ |
52,035 |
|
Intersegment revenues |
|
|
14,398 |
|
|
13,172 |
|
All Other revenues |
|
$ |
74,331 |
|
$ |
65,207 |
|
All Other costs and expenses (b) |
|
|
|
|
||
|
Cost of sales |
|
$ |
12,630 |
|
$ |
12,895 |
|
General and administrative expenses |
|
|
2,427 |
|
|
2,149 |
|
Advertising funds expense |
|
|
49,110 |
|
|
43,265 |
|
All Other adjusted EBITDA (c) |
|
$ |
10,164 |
|
$ |
6,898 |
|
___________________________________ |
|
|
(a) |
All other business units that do not meet the quantitative or qualitative thresholds for determining reporting segments, which are not operating segments, we refer to as “All Other.” These consist of operations that derive revenues from franchise contributions to marketing funds and information systems and related services used in restaurant operations, including our point-of-sale system, online and other technology -based ordering platforms. All Other is not a reportable segment under ASC 280, and this information is presented for informational purposes only. Please refer to the Company’s Form 10-Q for the first quarter ended |
|
(b) |
All Other costs and expenses excludes depreciation and amortization, stock-based compensation expense, and certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business. |
|
(c) |
See the Company’s Form 10-Q for the first quarter ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250508217387/en/
investor_relations@papajohns.com
Source: Papa John’s
