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Mar 26, 2023
Papa John's Q1 2023 Earnings Report
Papa John's reported record global system-wide restaurant sales, launched a new menu innovation, and reaffirmed its long-term development target.
Key Takeaways
Papa John's Q1 2023 saw record global system-wide restaurant sales, driven by menu innovation and operational efficiencies. North America comparable sales were flat, while international comparable sales declined. The company reaffirmed its long-term development target of 1,400 to 1,800 net new units between 2022 and 2025. Total revenues decreased slightly, but diluted earnings per share increased.
North America comparable sales were flat, with 3% growth in Domestic Company-owned Restaurants.
International comparable sales decreased by 6% due to economic pressure in the UK.
Global system-wide restaurant sales increased by 2% to $1.24 billion.
Diluted earnings per share increased to $0.65, while adjusted diluted earnings per share decreased to $0.68.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Papa John's is on track to achieve 270 to 310 net new units in 2023 and reaffirmed its long-term development target of 1,400 to 1,800 net new units between 2022 and 2025.
Positive Outlook
- Menu innovation is performing strongly.
- Company operations are showing continued strength.
- Corporate-owned restaurants are delivering significant improvements in out-the-door times.
- Customer satisfaction is increasing.
- Operational efficiencies and profitability are improving.
Challenges Ahead
- Continued wage inflation is impacting profitability.
- International comparable sales were down 6% primarily due to continued economic pressure in the UK.
- Total revenues were down 3% from a record first quarter a year ago.
- Adjusted diluted earnings per common share decreased from the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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