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Jun 26, 2022

Papa John's Q2 2022 Earnings Report

Papa John's reported mixed results for Q2 2022, with revenue increase offset by decreased earnings due to inflation and international market challenges.

Key Takeaways

Papa John's International, Inc. announced its Q2 2022 financial results, revealing a 1.5% increase in total revenues to $522.7 million. North America comparable sales increased by 0.9%, while international sales decreased by 8.0%. Earnings per diluted share were reported at $0.70, with non-GAAP adjusted diluted earnings per share at $0.74. The company increased its cash dividend by 20% and repurchased $42.8 million of its outstanding shares.

Total revenues increased by 1.5% to $522.7 million.

North America comparable sales increased by 0.9%, while International decreased by 8.0%.

Earnings per diluted share were $0.70, and non-GAAP adjusted diluted earnings per share was $0.74.

The company increased cash dividend by 20% and repurchased $42.8 million of shares.

Total Revenue
$523M
Previous year: $515M
+1.5%
EPS
$0.74
Previous year: $0.93
-20.4%
NA Comp Sales Growth
0.9%
Previous year: 5.2%
-82.7%
International Comp Sales
-8%
Previous year: 21.2%
-137.7%
Global Sales Growth
2.6%
Previous year: 12.2%
-78.7%
Gross Profit
$96.3M
Previous year: $111M
-13.1%
Cash and Equivalents
$52.1M
Previous year: $96.2M
-45.8%
Free Cash Flow
-$320K
Previous year: $50.3M
-100.6%
Total Assets
$836M
Previous year: $856M
-2.3%

Papa John's

Papa John's

Papa John's Revenue by Segment

Forward Guidance

Papa John's expects headwinds from inflation and lapping economic stimulus to persist into the second half of 2022 but is taking targeted actions to optimize near-term results while securing long-term market share growth.

Positive Outlook

  • Focusing on optimizing results in the near term.
  • Leaning into differentiated strategy.
  • Securing growing market share position for the long term.
  • Positioning for long-term growth and margin accretion when headwinds normalize.
  • Driving long-term shareholder value through innovations, unit growth, productivity, and capital investments.

Challenges Ahead

  • Experiencing high inflation.
  • Lapping economic stimulus from a year ago.
  • Expecting headwinds to persist into the second half of 2022.
  • Difficulties and opportunities associated with or related to the coronavirus pandemic
  • Risks to the global economy and our business related to the conflict in Ukraine

Revenue & Expenses

Visualization of income flow from segment revenue to net income