UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

February 26, 2008

Commission File Number:  0-21660

PAPA JOHN’S INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

2002 Papa Johns Boulevard

Louisville, Kentucky  40299-2367

(Address of principal executive offices)

(502) 261-7272

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 — Financial Information

Item 2.02 Results of Operations and Financial Condition

On February 26, 2008, Papa John’s International, Inc. issued a press release discussing fourth quarter and full-year financial results, reaffirming the 2008 earnings guidance and announcing a refranchising initiative.

Section 9 — Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(d)         Exhibits

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

PAPA JOHN’S INTERNATIONAL, INC.

(Registrant)

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Exhibit 99.1

For more information, contact:

David Flanery

Chief Financial Officer

502-261-4753

PAPA JOHN’S REPORTS

FOURTH QUARTER AND FULL-YEAR 2007 EARNINGS

2008 Earnings Guidance Reaffirmed;

Refranchising Initiative Announced

Highlights

·                  Fourth quarter earnings per diluted share of $0.27 in 2007 vs. $0.59 in 2006.  Comparable fourth quarter results, excluding certain noted items (see table on page 3), are $0.52 in 2007 vs. $0.43 in 2006, an increase of 20.9%.

·                  Full-year earnings per diluted share of $1.09 in 2007 vs. $1.92 in 2006.  Comparable full-year results, excluding certain noted items (see table on page 3), are $1.66 in 2007 vs. $1.40 in 2006, an increase of 18.6%.

·      Full year income from continuing operations before income taxes, excluding the impact of consolidating BIBP, was relatively flat (2006 results benefited from an additional week of operations producing approximately $3.5 million of pre-tax operating income)

·                  Domestic system-wide comparable sales increases of 2.1% for the quarter and 0.4% for the year

·                  69 net Papa John’s worldwide openings during the quarter and 193 for all of 2007

·                  Earnings guidance for 2008 reaffirmed at a range of $1.68 to $1.76 per diluted share, excluding the impact of consolidating BIBP

·                  Domestic refranchising initiative announced, targeting a reduction in company-owned unit mix below 20% in the next few years

                                                Louisville, Kentucky (February 26, 2008) — Papa John’s International, Inc. (NASDAQ: PZZA) today announced revenues of $283.9 million for the fourth quarter of 2007, representing an increase of 2.2% from revenues of $277.9 million for the same period in 2006, including approximately $20.0 million for the additional week of

operations in 2006, as described below. Net income for the fourth quarter of 2007 was $7.7 million, or $0.27 per diluted share (including an after-tax loss of $8.0 million, or $0.28 per diluted share, from the consolidation of the results of the franchisee-owned cheese purchasing company, BIBP Commodities, Inc. (BIBP), a variable interest entity, and a gain of $1.0 million, or $0.03 per diluted share, from the finalization of certain income tax issues), compared to 2006 fourth quarter net income of $19.0 million, or $0.59 per diluted share (including an after-tax gain of $1.4 million, or $0.04 per diluted share, from the consolidation of BIBP, and a gain of $1.6 million, or $0.05 per diluted share, from the finalization of certain income tax issues). The fourth-quarter 2006 pre-tax income results also benefited approximately $3.5 million, or $0.07 per diluted share from the additional week of operations.

                Consolidated revenues for 2007 were $1.06 billion, representing an increase of 6.2% from 2006 revenues of $1.00 billion, including approximately $20.0 million for the additional week of operations in 2006. Net income for 2007 was $32.7 million, or $1.09 per diluted share (including a net loss of $20.5 million or $0.68 per diluted share, from the consolidation of BIBP and a gain of $3.4 million, or $0.11 per diluted share, from the finalization of certain income tax issues), compared to last year’s net income of $63.4 million, or $1.92 per diluted share (including an after-tax gain of $11.8 million, or $0.36 per diluted share, from the consolidation of BIBP and a gain of $2.5 million, or $0.08 per diluted share, from the finalization of certain income tax issues). The 2006 full-year results benefited approximately $3.5 million, or $0.07 per diluted share, from the additional week of operations.

                The company follows a fiscal year ending on the last Sunday of December, generally consisting of 52 weeks made up of four 13-week quarters, which are in turn made up of two four-week periods followed by one five-week period. In 2006, the company’s fiscal year consisted of 53 weeks, with the additional week added to the fourth quarter (14 weeks) results. The additional week resulted in additional revenues of approximately $20.0 million and additional pre-tax income of approximately $3.5 million, or $0.07 per diluted share, for both the fourth quarter and full year of 2006.

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The following tables summarize the above-mentioned items impacting 2007 net income and earnings per diluted share, as compared to the same periods presented for the prior year:

“We were very pleased with both our fourth quarter and full-year 2007 results,” commented Papa John’s president and chief executive officer, Nigel Travis.  “We were the only national pizza chain that reported positive comp sales and domestic restaurant growth in 2007. In addition, growing net income by 7.4% and EPS by 18.6% in a very difficult cost and competitive environment is a testament to the strength of our system and the power of our brand.  My congratulations to the entire Papa John’s system for this very strong performance.”

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Revenues Comparison

                Consolidated revenues were $283.9 million for the fourth quarter of 2007, an increase of $6.0 million or 2.2%, over the corresponding 2006 period. The 2006 period included $20.0 million from the additional week of operations mentioned above. The increase in revenues for the fourth quarter of 2007, excluding the impact of the additional week of operations in 2006, was principally due to the following:

·                  Domestic company-owned restaurant revenues increased $8.1 million, reflecting the acquisition of 61 domestic restaurants during 2007.

·                  Franchising revenues increased $2.2 million, primarily due to the collection of $2.0 million of fees associated with the previously disclosed franchise renewal program, which was substantially completed during the fourth quarter.

·                  International revenues increased $2.4 million due to the acquisition of restaurants in Beijing, China in December 2006 and increased royalty revenues from additional franchised units.

·                  Other sales increased due to expanded commercial volumes at our print and promotions operations.

·                  The above-mentioned increases in revenue were partially offset by a decline in commissary revenues of $6.2 million associated with the impact of the previously mentioned additional week of operations in 2006.

For the full-year 2007, consolidated revenues increased $62.0 million, or 6.2%, principally due to the reasons mentioned above.

Operating Results and Cash Flow

Operating Results

Our pre-tax income from continuing operations for the fourth quarter of 2007 was $10.4 million, compared to $27.3 million for the corresponding period in 2006. For the full-year 2007, pre-tax income was $46.0 million, compared to $96.2 million for the corresponding period in 2006. Excluding the impact of the consolidation of BIBP, fourth- quarter 2007 pre-tax income from continuing operations was $22.7 million, a decrease of $2.7 million from the 2006 comparable period of $25.4 million, and pre-tax income for 2007 was $77.7 million, an increase of $567,000 over the 2006 comparable results of $77.2 million. As previously noted, the additional week of operations in 2006 added $3.5 million to the pre-tax income results for the fourth quarter and full year 2006.  An analysis of the changes in pre-tax income from continuing operations for the fourth quarter and full-year 2007, respectively (excluding the consolidation of BIBP), are summarized as follows (analyzed on a segment basis — see the Summary Financial Data table that follows for the reconciliation of segment income to consolidated income below):

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·                  Domestic Company-owned Restaurant Segment. Domestic company-owned restaurants’ operating income decreased $4.0 million and $7.8 million for the three months and full year ended December 30, 2007, respectively. Approximately $1.6 illion of the decrease for both the quarter and full year was related to the 53^rd week of operations in 2006. The remaining decline in operating income was primarily due to an increase in labor costs (including the impact of a federal minimum wage increase in July 2007 and certain other minimum wage increases in various states), increased commodity costs and other operating costs. In addition, the 2007 results include charges of $1.1 million and $1.5 million for the three months and full year ended December 30, 2007, respectively, associated with the closure or impairment of certain restaurants. The full-year 2007 results were favorably impacted by a $594,000 pre-tax gain associated with the termination of a lease agreement in the second quarter of 2007.

·                  Domestic Commissary Segment. Domestic commissaries’ operating income decreased approximately $2.4 million for the three months ended December 30, 2007 (a $1.2 million decrease excluding the $1.2 million impact of the 53^rd week of operations in 2006) and increased $1.2 million for the full year (a $2.4 million increase excluding the $1.2 million impact of the 53^rd week of operations in 2006), from the comparable 2006 periods. The decrease in operating results, excluding the impact of the 53^rd week, for the three-month period ended December 30, 2007 is primarily due to a $600,000 contribution to the Papa John’s Marketing Fund and a reduction in margin resulting from increases in the cost of certain commodities that were not passed along to domestic restaurants. The full-year 2007 operating results increased approximately $2.4 million, excluding the impact of the 53^rd week, as compared to 2006, primarily due to increased volumes of higher-margin fresh dough products and improved margins from other commodities.

·                  Domestic Franchising Segment. Domestic franchising operating income increased $1.1 million for the three months ended December 30, 2007 and was relatively flat for the full-year period. The 2006 operating results included $1.0 million of additional royalty revenue in 2006 for the 53^rd week of operations. The fourth quarter 2007 results included the collection of $2.0 million in fees associated with our franchise renewal program. On a full-year basis, franchise royalty and development fees totaled $60.0 million in 2007, as compared to $59.0 million in 2006.  The increase in 2007 revenues was offset by an increase in costs with our field organization support staff in 2007 to improve the support of our domestic operations.

·                  International Segment. The international operating results, which exclude the Perfect Pizza operations in the United Kingdom which were sold in March 2006, reported operating losses of $2.4 million and $8.7 million for the three months and full year ended December 30, 2007, as compared to operating losses of $2.1 million and $8.9 million for the corresponding 2006 periods. The decline in operating results for the fourth quarter was principally due to the write-down of the

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carrying value of one company-owned restaurant located in the United Kingdom.  On a full-year basis, increased current year revenues due to growth in number of units and unit volumes were substantially offset by increased personnel and infrastructure investment costs.  The 53^rd week of operations in 2006 did not have a significant impact on this segment.

·                  All Others Segment. The “All others” reporting segment reported operating earnings of $2.3 million and $6.3 million for the three-month and full-year periods ended December 30, 2007, respectively, compared to $1.8 million and $5.6 million, respectively, in the same periods of the prior year. The increases of $471,000 and $720,000 in operating income were due to improved operating results at our print and promotions operations, reflecting an increase in our sales to commercial customers and improved operating results from our captive insurance subsidiary.  The full-year improvement was also impacted by improved operating results of our online operations. The 53^rd week of operations in 2006 did not have a significant impact on this segment.

·                  Unallocated Corporate Segment. Unallocated corporate expenses decreased approximately $2.0 million and $6.1 million for the three-month and full-year periods ended December 30, 2007, respectively, as compared to the prior year periods, including approximately $300,000 of additional expenses related to the 53^rd week of operations in 2006.

The decreases in both periods were due to the following:

The decreases in general and administrative costs were primarily due to lower management incentive costs (see further discussion below) and lower costs with our workers compensation, non-owned automobile and health self-insurance programs for the fourth quarter and full-year 2007 periods, as compared to the corresponding 2006 periods.

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As previously noted, the primary reason for the decrease in the unallocated general and administrative expenses during 2007 was a reduction in management incentive costs.  The following table summarizes our recorded expense (income) associated with our management incentive programs (in thousands):

The decrease in the executive performance unit incentive plan expense for the fourth quarter and full-year 2007 periods, as compared to the corresponding prior year periods, was due to a reduction in expected bonus payment, reflecting a decrease in the company’s stock price, the forfeiture of units associated with certain executive departures and the change in the Founder Chairman’s status from an employee director of the company to a non-employee director during 2007.

The annual management incentive bonus plan is based on the company’s annual operating income performance and certain sales measures as compared to pre-established targets. The decrease in the expense for the fourth quarter and full-year 2007 periods, as compared to the corresponding prior year periods, was primarily due to below-target sales and operating income for the full-year of 2007 and the transition of the Founder Chairman to a non-employee director status.

Net interest expense included in the unallocated corporate segment increased approximately $809,000 and $4.3 million for the fourth quarter and full-year 2007 periods, respectively, as compared to the corresponding 2006 periods, principally due to a higher average debt balance resulting from share repurchase activity under our share repurchase program and franchise restaurant acquisitions during the last twelve months.

Other expenses increased during the fourth quarter and full year 2007, as compared to corresponding 2006 periods, due to costs associated with the disposition and write-down of certain assets to fair value.

The company recorded reductions in its customary income tax expense of $1.0 million and $3.4 million for the three months and full year ended December 30, 2007, respectively, and reductions of $1.6 million and $2.5 million for the three months and full-year comparable periods in 2006, respectively, due to the finalization of certain income tax issues. The effective income tax rate was 28.9% for full year 2007, compared to 34.5% for the comparable period in 2006. Our tax rate for 2008 is estimated to be 36.0%.

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Cash Flow

                Cash flow from continuing operations was $61.6 million for the full-year 2007 as compared to $85.2 million for the comparable period in 2006. The consolidation of BIBP decreased cash flow from operations by approximately $31.7 million in 2007 and increased cash flow from operations by $19.0 million in 2006. Excluding the impact of the consolidation of BIBP, cash flow from continuing operations was $93.3 million in 2007 as compared to $66.2 million in the corresponding 2006 period. The $27.1 million increase was primarily due to an increase in net income and an improvement in working capital including accounts receivable, inventories and accounts payable.

Form 10-K Filing

                See the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our annual Form 10-K filed with the Securities and Exchange Commission for additional information concerning our operating results and cash flow for the full year ended December 30, 2007.

Comparable Sales, System-wide Sales and Unit Count

                Domestic system-wide comparable sales for the fourth quarter of 2007 increased 2.1% (composed of a 2.0% increase at company-owned restaurants and a 2.2% increase at franchised restaurants). Domestic system-wide comparable sales for the full year 2007 increased 0.4% (composed of a 0.5% increase at company-owned restaurants and a 0.3% increase at franchised restaurants). The comparable sales percentage represents the change in year-over-year sales for the same base of restaurants for the same calendar period.

Worldwide system sales decreased 0.6% to $559.2 million for the fourth quarter of 2007 and increased 2.4% to $2.15 billion for the full-year 2007, as compared to the comparable periods of the prior year. The worldwide system sales for 2006 included an additional week of operations, accounting for an additional $40.0 million in sales.

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The following table summarizes system-wide sales for the three- and twelve-months ended December 30, 2007 and December 31, 2006, on an actual U.S. dollar basis (dollars in thousands):

(1) The 2006 fourth quarter and full year results include an extra week of operations, which added approximately $40.0 million of sales.

During the fourth quarter of 2007, 49 domestic restaurants (five company-owned and 44 franchised) were opened. Additionally, 38 international restaurants (three company-owned and 35 franchised) were opened, while 16 domestic and two international franchised restaurants were closed, resulting in 69 net openings worldwide for the quarter. There were 193 net openings worldwide in 2007. Our total domestic development pipeline as of December 30, 2007 included approximately 300 restaurants scheduled to open over the next nine years.

At December 30, 2007, there were 3,208 Papa John’s restaurants (662 company-owned and 2,546 franchised) operating in all 50 states and 28 countries. The company-owned unit count includes 128 restaurants operated in majority-owned domestic joint venture arrangements, the operating results of which are fully consolidated into the company’s results.

Refranchising Initiative

The company announced the implementation of a formal refranchising initiative, the goal of which is to increase the percentage of franchised units in the domestic restaurant portfolio over time. The company believes shifting the domestic restaurant portfolio mix more toward franchised units will improve the absolute level and consistency of operating margin percentage and be more consistent with the trend in franchise business models in the domestic restaurant category.

Of the total 2,760 domestic units open as of December 30, 2007, 648 or 23.5% were company-owned (including 128 units owned in joint venture arrangements with franchisees in which the company has a majority ownership position). The company believes that through a combination of net openings more heavily weighted toward

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franchise units and the selective refranchising of certain company-owned markets, the percentage of company-owned units can be decreased below 20% in the next few years. Any refranchising activities completed during 2008 are not expected to have a significant impact on 2008 operating income and the net proceeds of any such sales are expected to support the share repurchase program previously announced.

Franchise Agreement Renewals Update

During the fourth quarter of 2007, approximately 75% of our domestic franchisees renewed their franchise agreements for an additional 10-year period. In connection with the renewals, we collected approximately $2.0 million in renewal fee income in the fourth quarter of 2007.  A substantial portion of the remaining franchisees renewed franchise agreements under this program subsequent to year-end. The royalty rate increased one-quarter percent, to 4.25%, as part of the agreement to increase the royalty to 5.0% by 2011, under the new standard franchise agreement effective in January 2008.

International Update

A total of 38 restaurants were opened in international markets during the fourth quarter of 2007, of which 12 were located in our fastest-growing markets, Korea and China. As of December 30, 2007, the company had a total of 448 corporate and franchised restaurants operating internationally, of which 141 were located in Korea and China. Our total international development pipeline as of December 30, 2007 included approximately 900 restaurants scheduled to open over the next ten years.

At the end of 2007, we had over 100 restaurants operating in the United Kingdom and Ireland. During the first half of 2008, we plan to open our 100^th restaurant in China. In 2008, we plan to open our first franchise restaurant in each of Poland, Turkey and Jordan.

Share Repurchase Activity

The company repurchased approximately 471,000 shares of its common stock at an average price of $23.21 per share, or a total of $10.9 million, during the fourth quarter of 2007, and 2.7 million shares of its common stock at an average price of $27.15 per share, or a total of $72.9 million, during 2007. Subsequent to year-end, through February 19, 2008, the company repurchased an additional $2.3 million of common stock (104,000 shares at an average price of $21.74 per share). A total of 91,000 and 765,000 shares of common stock were issued upon the exercise of stock options for the fourth quarter and full-year ended December 30, 2007, respectively.

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There were 29.0 million diluted weighted average shares outstanding for the fourth quarter of 2007 as compared to 32.2 million for the same period in 2006. Approximately 28.8 million actual shares of the company’s common stock were outstanding as of December 30, 2007. The company’s board of directors has authorized the repurchase of an additional $50.0 million of common stock through December 28, 2008. At February 19, 2008, $47.7 million remains available for repurchase under this authorization.

The company’s share repurchase activity increased earnings per diluted share from continuing operations, excluding the impact of the consolidation of BIBP, by $0.03 and $0.09 for the fourth quarter and full-year 2007 periods, respectively.

2008 Earnings Guidance Reaffirmed

                The company reaffirms its previously announced 2008 earnings per diluted share guidance in the range of $1.68 to $1.76 for the year. The comparable base earnings results for 2007 were $1.66 per diluted share. The projected earnings guidance excludes any impact from the consolidation of the results of BIBP. The 2008 guidance was not adjusted upward in response to favorable actual results in the fourth quarter of 2007 due to both the nature of the favorable results in the fourth quarter of 2007 and the continued expectations of commodity price pressures throughout 2008, especially wheat and cheese.

Forward-Looking Statements

Certain information contained in this annual report, particularly information regarding future financial performance and plans and objectives of management, is forward-looking. Certain factors could cause actual results to differ materially from those expressed in forward-looking statements. These factors include, but are not limited to: the uncertainties associated with litigation; changes in pricing or other marketing or promotional strategies by competitors which may adversely affect sales; new product and concept developments by food industry competitors; the ability of the Company and its franchisees to meet planned growth targets and operate new and existing restaurants profitably; general economic conditions; increases in or sustained high cost levels of food ingredients and other commodities, paper, utilities, fuel, employee compensation and benefits, insurance and similar costs; the ability to obtain ingredients from alternative suppliers, if needed; health- or disease-related disruptions or consumer concerns about commodities supplies; the selection and availability of suitable restaurant locations; negotiation of suitable lease or financing terms; constraints on permitting and construction of restaurants; local governmental agencies’ restrictions on the sale of certain food products; higher-than-anticipated construction costs; the hiring, training and retention of management and other personnel; changes in consumer taste, demographic trends, traffic patterns and the type, number and location of competing restaurants; franchisee relations; the possibility of impairment charges if PJUK or recently acquired

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restaurants perform below our expectations; our PJUK operations remain contingently liable for payment under 74 lease arrangements with a total value of $10.3 million associated with the sold Perfect Pizza operations; federal and state laws governing such matters as wages, benefits, working conditions, citizenship requirements and overtime, including legislation to further increase the federal and state minimum wage; and labor shortages in various markets resulting in higher required wage rates. In recent months, the credit markets have experienced instability.  Our franchisees may experience difficulty in obtaining adequate financing and thus our growth strategy and franchise revenues may be adversely affected.  The above factors might be especially harmful to the financial viability of franchisees or Company-owned operations in under-penetrated or emerging markets, leading to greater unit closings than anticipated. Increases in projected claims losses for the Company’s self-insured coverage or within the captive franchise insurance program could have a significant impact on our operating results. Additionally, domestic franchisees are only required to purchase seasoned sauce and dough from our quality control centers (“QC Centers”) and changes in purchasing practices by domestic franchisees could adversely affect the financial results of our QC Centers.  Our international operations are subject to additional factors, including political and health conditions in the countries in which the Company or its franchisees operate; currency regulations and fluctuations; differing business and social cultures and consumer preferences; diverse government regulations and structures; ability to source high-quality ingredients and other commodities in a cost-effective manner; and differing interpretation of the obligations established in franchise agreements with international franchisees.

Conference Call

                A conference call is scheduled for February 27, 2008 at 10:00 EST to review fourth quarter and full-year earnings results. The call can be accessed from the company’s web page at www.papajohns.com in a listen-only mode, or dial 800-487-2662 (pass code 32138619) for participation in the question and answer session. International participants may dial 706-679-8452 (pass code 32138619).

                The conference call will be available for replay, including downloadable podcast, beginning February 27, 2008, at approximately noon through March 5, 2008, at midnight EST. The replay can be accessed from the company’s web page at www.papajohns.com or by dialing 800-642-1687 (pass code 32138619). International participants may dial 706-645-9291 (pass code 32138619).

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Summary Financial Data

Papa John’s International, Inc.

(Unaudited)

*The following is a summary of our income (loss) from continuing operations before income taxes:

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Summary Financial Data (continued)

Papa John’s International, Inc.

(Unaudited)

The following is a reconciliation of EBITDA to net income:

(1)                                  The three-month and full-year periods in 2006 include one additional week of operations which produced $20.0 million in additional consolidated revenues and $3.5 million in additional income from continuing operations before income taxes.

(2)                                  Management considers EBITDA to be a meaningful indicator of operating performance from continuing operations before depreciation, amortization, net interest and income taxes. EBITDA provides us with an understanding of one aspect of earnings before the impact of investing and financing transactions and income taxes. While EBITDA should not be construed as a substitute for net income or a better indicator of liquidity than cash flows from operating activities, which are determined in accordance with accounting principles generally accepted in the United States (GAAP), it is included herein to provide additional information with respect to the ability of the company to meet its future debt service, capital expenditure and working capital requirements. EBITDA is not necessarily a measure of the company’s ability to fund its cash needs and it excludes components that are significant in understanding and assessing our results of operations and cash flows. In addition, EBITDA is not a term defined by GAAP and as a result our measure of EBITDA might not be comparable to similarly titled measures used by other companies. The above EBITDA calculation includes the operating results of BIBP Commodities, Inc., a variable interest entity.

(3)                                  BIBP incurred an operating loss of $31.7 million in 2007, which was composed of losses associated with cheese sold to domestic company-owned restaurants and franchise restaurants of $8.0 million and $22.9 million, respectively. The remainder of the 2007 loss was primarily composed of interest expense on outstanding debt with a third-party bank and Papa John’s. For 2006, BIBP reported operating income of $19.0 million, which was composed of income associated with cheese sold to domestic company-owned restaurants and franchise restaurants of $4.6 million and $15.2 million, respectively. The 2006 income from the sale of cheese was partially offset by interest expense on outstanding debt.

*   *   *   *

For more information about the company, please visit www.papajohns.com.

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Papa John’s International, Inc. and Subsidiaries

Consolidated Statements of Income

Note: The statements of income for the years ended December 30, 2007 and December 31, 2006 have been derived from the audited consolidated financial statements at those dates, but do not include all information and footnotes required by generally accepted accounting principles for a complete set of financial statements.  The three-month and full-year periods in 2006 include one additional week of operations.

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Papa John’s International, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Note: The balance sheets at December 30, 2007 and December 31, 2006 have been derived from the audited consolidated financial statements at those dates, but do not include all information and footnotes required by generally accepted accounting principles for a complete set of financial statements.

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Papa John’s International, Inc. and Subsidiaries

Consolidated Statements of Cash Flows