Papa John's reports strong Q2
Aug. 2, 2017
by Erica Shaffer
Revenue at Papa John’s International advanced 2.8 percent, while net income increased 4 percent.
LOUISVILLE, Ky. – Papa John’s International swung to a profit in the second quarter on higher revenues from strong comparable sales in North American and international units.
For the second quarter ended June 25, the company reported net income of $23,538,000, or $0.65 per diluted share, compared with $22,541,000, or $0.61 per diluted share reported last year.
Revenue for the quarter was $434,777,000 compared with $422,964,000 in the second quarter of 2016.
Papa John’s attributed the increases to stronger North America commissary sales due to higher volumes and higher commodity costs. The result was somewhat offset by the impact of unfavorable foreign exchange rates — primarily attributed to operations in the United Kingdom — and the impact of refranchising 42 domestic restaurants in the fourth quarter of 2016, the company said. The impact of foreign exchange rates was approximately $2.5 million and $5.6 million for the three and six-month periods, respectively.
Net income for the six months ended June 25 was $51,966,000, or $1.42 per diluted share, compared with $48,723,000, or $1.29 per diluted share reported in the year-ago period.
“The company delivered solid results in the second quarter, including the 27th consecutive quarter of positive North America comparable sales and the 29th consecutive quarter of positive International comparable sales,” John Schnatter, Papa John’s founder, chairman and CEO said in a statement. “Our industry-leading quality and digital platforms, such as our launch of Facebook instant ordering, will continue to drive the consistent growth of the Papa John’s brand globally. The increase in our share repurchase authorization aligns with the continued confidence we have in our business.”