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Jun 25, 2023
Papa John's Q2 2023 Earnings Report
Papa John's Q2 2023 financial results announced with a 10% increase in cash dividend.
Key Takeaways
Papa John's Q2 2023 results showed North America comparable sales down 1%, International comparable sales down 1% but improved 5% from Q1, and 47 net unit openings. Global system-wide restaurant sales increased by 2% to $1.22 billion, while total revenues decreased by 2% to $515 million. Diluted EPS was $0.54, and adjusted diluted EPS was $0.59. The company also announced a 10% increase in the annual dividend rate.
North America comparable sales decreased by 1%, with domestic company-owned restaurants offsetting lower franchised restaurant sales.
International comparable sales decreased by 1% year-over-year but improved 5% compared to the first quarter.
There were 47 net unit openings in the second quarter, driven by international growth.
Global system-wide restaurant sales increased by 2% to $1.22 billion.
Papa John's
Papa John's
Papa John's Revenue by Segment
Papa John's Revenue by Geographic Location
Revenue by Segment
Domestic Company-owned Restaurants Revenue
CapyFin.comNorth America Franchising Revenue
CapyFin.comNorth America Commissaries Revenue
CapyFin.comInternational Revenue
CapyFin.comAll Other Segments Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
The company expects positive comp sales and attractive new unit development growth in the back half of 2023 and over the long-term, driven by investments in sales-driving capabilities, operational excellence, and a strong balance sheet.
Positive Outlook
- Optimize system’s revenue management strategies.
- Expand one of their most popular pizza platforms.
- Continued investments in sales-driving capabilities.
- Continued investments in operational excellence.
- Strength of balance sheet.
Challenges Ahead
- Challenging operating environment.
- Lower-than-anticipated comps our franchisees experienced during the quarter.
- Macro-economic challenges ahead, particularly in the short term.
- Deteriorating economic conditions in the U.S. and international markets, including the United Kingdom.
- Potential for delayed new store openings, both domestically and internationally, or lower net unit development due to changing circumstances outside of our control.
Revenue & Expenses
Visualization of income flow from segment revenue to net income