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Papa John’s 1Q profit up 107 percent

May 5, 2009
Business First of Louisville

Papa John’s International Inc. more than doubled its first-quarter profit despite a 1.4 percent dip in revenue.

Louisville-based Papa John’s (NASDAQ: PZZA) said its first-quarter net income rose to $17.8 million, or 64 cents per share, from $8.6 million, or 30 cents per share, a year earlier.

The results in the first quarter of 2009 included after-tax income of $5.9 million, or 21 cents per share, from the consolidation of the results of a franchisee-owned cheese purchasing cooperative, BIBP Commodities Inc.

The year-earlier period included a net loss of $5.2 million, or 18 cents per share, from the consolidation of the cooperative and a net charge of $700,000, or 2 cents per share, related to the sale or impairment of restaurants.

First-quarter revenue declined to $285 million from $289 million a year earlier, primarily a result of the fourth-quarter sale of 62 company-owned stores to franchisees, Papa John’s said in a news release.

A consensus of financial analysts polled by Thomson Reuters had predicted earnings of 34 cents per share and revenue of $279 million.

Domestic same-store sales increased 0.3 percent. During the quarter, Papa John’s opened 17 domestic restaurants, including three owned by the company. It 21 domestic restaurants, including four owned by the company.

As of March 29, Papa John’s had 3,404 domestic and international restaurants, including 612 owned by the company. The company has restaurants in all 50 states and 29 countries. It plans to open about 300 restaurants over the next 10 years.