Papa John's Q1 2024 Earnings Report
Key Takeaways
Papa John's Q1 2024 results showed a decrease in North America and International comparable sales. Total revenues decreased by 2% to $514 million, while operating income decreased by 11% to $34 million. Despite these challenges, the company improved restaurant-level margins and increased adjusted operating income by 10% through cost discipline.
North America comparable sales decreased by 2% due to declines in both company-owned and franchised restaurants.
International comparable sales decreased by 3%.
Global system-wide restaurant sales decreased by 1% to $1.23 billion, impacted by the shift of a high-volume week between Christmas and New Years into Q4.
Total revenues decreased by 2% to $514 million, primarily due to lower North America commissary revenues from commodity price declines.
Papa John's
Papa John's
Papa John's Revenue by Segment
Forward Guidance
The company is focused on improving restaurant operations, digital solutions, and marketing platforms to drive sustainable, profitable growth. They aim to increase franchisee profitability and are confident in their consumer-centric approach.
Positive Outlook
- Improving restaurant-level margins.
- Increasing operating profits.
- Making meaningful progress on Back to Better 2.0 initiatives.
- Making meaningful progress on International Transformation initiatives.
- Consumer-centric focus.
Challenges Ahead
- Challenging environment in the first quarter.
- Decreased North America comparable sales.
- Decreased International comparable sales.
- Global system-wide restaurant sales decreased.
- Lower North America commissary revenues due to commodity price declines.
Revenue & Expenses
Visualization of income flow from segment revenue to net income