Papa John‘s International, Inc.
Aug 5, 2008

Papa John's Reports Second Quarter Earnings

Domestic comps increase 2.4%; 2008 earnings guidance reaffirmed

Highlights

LOUISVILLE, Ky.--(BUSINESS WIRE)--Aug. 5, 2008--Papa John's International, Inc. (NASDAQ: PZZA) today announced revenues of $283.4 million for the second quarter of 2008, representing an increase of 10.6% from revenues of $256.3 million for the same period in 2007. Net income for the second quarter of 2008 was $7.6 million, or $0.27 per diluted share (including an after-tax loss of $4.1 million, or $0.14 per diluted share, from the consolidation of the results of the franchisee-owned cheese purchasing company, BIBP Commodities, Inc. ("BIBP"), a variable interest entity), compared to 2007 second quarter net income of $7.0 million, or $0.23 per diluted share (including a net loss of approximately $5.3 million, or $0.17 per diluted share, from the consolidation of BIBP).

Revenues were $572.4 million for the six months ended June 29, 2008, representing an increase of 10.7% from revenues of $516.9 million for the same period in 2007. Net income for the six months ended June 29, 2008 was $16.3 million, or $0.57 per diluted share (including a net loss of $9.3 million, or $0.32 per diluted share, from the consolidation of BIBP), compared to last year's net income of $20.2 million, or $0.66 per diluted share (including an after-tax loss of $5.5 million, or $0.18 per diluted share, from the consolidation of BIBP).

"Given the brutal commodity and consumer environment, our second quarter comps were very encouraging and our earnings and cash flow yield remained strong," said Papa John's president and chief executive officer, Nigel Travis. "As the commodities market and operating environment remain both difficult and unpredictable, we will continue to look for ways to assist both our corporate and franchise operators through this difficult period while driving top line sales."

Revenues Comparison

Revenues were $283.4 million for the second quarter of 2008, an increase of $27.2 million, or 10.6%, over the corresponding 2007 period. The increase in revenues for the second quarter of 2008 was principally due to the following:

For the six-month period ending June 29, 2008, revenues increased $55.5 million, or 10.7%, principally due to the reasons mentioned above and due to a first quarter increase in other sales from expanded commercial volumes at our print and promotions subsidiary, Preferred Marketing Solutions, Inc.

Operating Results and Cash Flow

Operating Results

Our pre-tax income for the second quarter of 2008 was $12.2 million, compared to $11.1 million for the corresponding period in 2007. For the six months ended June 29, 2008, pre-tax income was $25.8 million compared to $31.8 million for the corresponding period of 2007. Excluding the impact of the consolidation of BIBP, second quarter 2008 pre-tax income was $18.5 million, a decrease of $900,000 or 4.5%, from the 2007 comparable results of $19.4 million and pre-tax income for the six months ended June 29, 2008 was $40.0 million, a decrease of $400,000, or 1.1%, from the 2007 comparable results. An analysis of the changes in pre-tax income for the three- and six-month periods ended June 29, 2008, 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):



                                              Three Months Ended
                                          ---------------------------
                                          June 29, July 1,  Increase
                                            2008    2007   (decrease)
                                          ---------------------------

General and administrative                 $6,048   $4,404    $1,644
Net interest                                1,186    1,406      (220)
Depreciation                                1,940    1,587       353
Contributions to the Marketing Fund            75        -        75
Other expense (income)                       (105)      89      (194)
                                          ---------------------------
Total unallocated corporate expenses       $9,144   $7,486    $1,658
                                          ===========================

                                                Six Months Ended
                                           ---------------------------
                                           June 29, July 1,  Increase
                                             2008    2007   (decrease)
                                           ---------------------------

General and administrative                 $12,196  $ 9,289    $2,907
Net interest                                 2,358    2,698      (340)
Depreciation                                 3,737    3,313       424
Contributions to the Marketing Fund            150      400      (250)
Other expense (income)                         (78)      81      (159)
                                           ---------------------------
Total unallocated corporate expenses       $18,363  $15,781    $2,582
                                           ===========================

The increases in unallocated general and administrative costs for both the three- and six-month periods were primarily due to increases in executive incentive compensation, including our management incentive program, as a result of (1) an expected higher level of goal achievement in 2008 as compared to 2007; and (2) the fact that the prior year periods included adjustments of approximately $1.2 million for awards forfeited by our Founder Chairman due to a change in status from an employee director of the company to a non-employee director. Additionally, an increase in certain employee benefit costs during 2008, including health insurance, and severance-related costs recorded in the first quarter of 2008 impacted the year-over-year comparison.

The effective income tax rate was 37.2% and 36.9% for the three and six months ended June 29, 2008, respectively, (36.5% and 36.2% for the three- and six-month periods, respectively, excluding BIBP) and 36.9% and 36.6% for the same periods in 2007 (36.5% for both the three- and six-month periods in 2007, excluding BIBP).

Cash Flow

Cash flow from operations was $29.3 million for the first six months of 2008 as compared to $26.2 million for the comparable period in 2007. The consolidation of BIBP decreased cash flow from operations by approximately $14.3 million and $8.7 million in the first six months of 2008 and 2007, respectively. Excluding the impact of the consolidation of BIBP, cash flow from operations was $43.5 million in 2008, as compared to $34.9 million in the corresponding 2007 period. The $8.6 million increase was primarily due to an improvement in working capital, including income and other taxes, accrued expenses and accounts payable.

Form 10-Q Filing

See the Management's Discussion and Analysis of Financial Condition and Results of Operations section of our quarterly Form 10-Q filed with the Securities and Exchange Commission for additional information concerning our operating results and cash flow for the three- and six-month periods ended June 29, 2008.

Domestic Comparable Sales and Unit Count

Domestic system-wide comparable sales for the second quarter of 2008 increased 2.4% (composed of a 3.6% increase at company-owned restaurants and a 1.9% increase at franchised restaurants). Domestic system-wide comparable sales for the six months ended June 29, 2008 increased 2.0% (composed of a 3.1% increase at company-owned restaurants and a 1.6% 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.

During the second quarter of 2008, 29 domestic restaurants (five company-owned and 24 franchised) were opened. On a year-to-date basis, we have opened 55 domestic restaurants (nine company-owned and 46 franchised) and 46 restaurants were closed. Our total domestic development pipeline as of June 29, 2008 included approximately 350 restaurants scheduled to open over the next ten years.

At June 29, 2008, there were 3,270 domestic and international Papa John's restaurants (670 company-owned and 2,600 franchised) operating in all 50 states and 28 countries. The company-owned unit count includes 127 restaurants operated in majority-owned domestic joint venture arrangements, the operating results of which are fully consolidated into the company's results.

International Update

Highlights:

As of June 29, 2008, the company had a total of 501 restaurants operating internationally (18 company-owned and 483 franchised), of which 160 were located in Korea and China and 109 were located in the United Kingdom and Ireland. Our total international development pipeline as of June 29, 2008 included approximately 1,100 restaurants scheduled to open over the next ten years.

Refranchising Initiative Update

At year-end, 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's goal is to reduce the percentage of domestic-owned company units to below 20% in the next few years (23.5% at June 29, 2008).

The company is working to complete the sale of 21 company-owned restaurants located in two markets. Our goal is to complete the sale of these restaurants during the third quarter of 2008, subject to satisfactory completion of due diligence and finalization of third-party financing by the buyers. The company plans to continue to review additional divestiture opportunities over the next several months.

Share Repurchase Activity

The company's board of directors has authorized the repurchase of $50.0 million of common stock during 2008. The company repurchased approximately 664,000 shares of its common stock at an average price of $27.13 per share, or a total of $18.0 million, during the second quarter of 2008, and 768,000 shares of its common stock at an average price of $26.40 per share, or a total of $20.3 million, during the first six months of 2008. A total of 26,000 and 50,000 shares of common stock were issued upon the exercise of stock options for the three- and six-month periods ended June 29, 2008, respectively. Subsequent to quarter-end, through July 30, 2008, the company repurchased an additional $6.9 million of common stock (255,000 shares at an average price of $26.99 per share). At July 30, 2008, $22.8 million remains available for repurchase under the repurchase authorization.

There were 28.7 million diluted weighted average shares outstanding for the second quarter of 2008, as compared to 30.6 million for the same period in 2007, a 6.2% decrease. Approximately 28.3 million actual shares of the company's common stock were outstanding as of June 29, 2008.

The company's share repurchase activity increased earnings per diluted share, excluding the impact of the consolidation of BIBP, by $0.01 for the three and six months ended June 29, 2008.

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 projected earnings guidance excludes any impact from the consolidation of the results of BIBP and reflects our expectations of continued commodity price pressures, most notably cheese and wheat, as well as increased fuel costs. We expect that net worldwide unit growth will more likely be near the low end of our previous guidance of a range of 160 to 190 units due to the possibility of reduced unit openings and/or increased unit closings as a result of continued pressures on operating margins related to increased commodity, labor and energy costs. We also reiterate our guidance for domestic system-wide comparable sales to increase in the range of 1.25% to 2.75%.

Non-GAAP Measures

The financial information we present in this press release excluding the impact of the consolidation of BIBP are not measures that are defined in accordance with accounting principles generally accepted in the United States ("GAAP"). These non-GAAP measures should not be construed as a substitute for or a better indicator of the company's performance than the company's GAAP measures. Management believes the financial information excluding the impact of the consolidation of BIBP is important for purposes of comparison to prior periods and development of future projections and earnings growth prospects. Management analyzes the company's business performance and trends excluding the impact of the consolidation of BIBP because the results of BIBP are not indicative of the principal operating activities of the company. In addition, annual cash bonuses, and certain long-term incentive programs for various levels of management, are based on financial measures that exclude BIBP. Management believes these non-GAAP measures provide management and investors with a more consistent view of performance than the closest GAAP equivalent. Management compensates for this by using these measures in combination with the GAAP measures. The presentation of the non-GAAP measures in this press release is made alongside the most directly comparable GAAP measures.

The company has provided the table below to reconcile the financial results we present in this press release excluding the impact of the consolidation of BIBP to our GAAP financial measures.

                                   Three Months Ended Six Months Ended
                                   ------------------ ----------------
(In thousands, except per share     June 29,  July 1, June 29, July 1,
 amounts)                             2008     2007     2008    2007
                                   ---------- ------- -------- -------

Pre-tax income, as reported           $12,186 $11,110  $25,787 $31,823
Loss from BIBP cheese purchasing
 entity                                 6,302   8,257   14,253   8,663
                                   ---------- ------- -------- -------
Pre-tax income, excluding BIBP        $18,488 $19,367  $40,040 $40,486
                                   ========== ======= ======== =======

Net income, as reported               $ 7,648 $ 7,009  $16,273 $20,164
Loss from BIBP cheese purchasing
 entity                                 4,096   5,289    9,264   5,545
                                   ---------- ------- -------- -------
Net income, excluding BIBP            $11,744 $12,298  $25,537 $25,709
                                   ========== ======= ======== =======

Earnings per diluted share, as
 reported                             $  0.27 $  0.23  $  0.57 $  0.66
Loss from BIBP cheese purchasing
 entity                                  0.14    0.17     0.32    0.18
                                   ---------- ------- -------- -------
Earnings per diluted share,
 excluding BIBP                       $  0.41 $  0.40  $  0.89 $  0.84
                                   ========== ======= ======== =======

Cash flow from operations, as
 reported                                              $29,252 $26,244
BIBP cheese purchasing entity                           14,253   8,663
                                                      -------- -------
Cash flow from operations,
 excluding BIBP                                        $43,505 $34,907
                                                      ======== =======

Forward-Looking Statements

Certain information contained in this quarterly 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: 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 uncertainties associated with litigation; the possibility of impairment charges if PJUK or recently acquired restaurants perform below our expectations; our PJUK operations remain contingently liable for payment under certain lease arrangements with a total value of approximately $10.0 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. See "Part I. Item 1A. - Risk Factors" of the Annual Report on Form 10-K for the fiscal year ended December 30, 2007 for additional factors.

Conference Call

A conference call is scheduled for August 6, 2008 at 10:00 EDT to review second quarter 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 32146821) for participation in the question and answer session. International participants may dial 706-679-8452 (pass code 32146821).



The conference call will be available for replay, including downloadable podcast, beginning August 6, 2008, at approximately noon through August 13, 2008, at midnight EDT. The replay can be accessed from the company's web page at www.papajohns.com or by dialing 800-642-1687 (pass code 32146821). International participants may dial 706-645-9291 (pass code 32146821).

                        Summary Financial Data
                   Papa John's International, Inc.
                             (Unaudited)

                               Three Months Ended   Six Months Ended
                               ------------------- -------------------
(In thousands, except per      June 29,   July 1,  June 29,   July 1,
 share amounts)                  2008      2007      2008      2007
                               --------- --------- --------- ---------

Revenues                       $283,408  $256,256  $572,413  $516,880
                               ========= ========= ========= =========

Income before income taxes (a) $ 12,186  $ 11,110  $ 25,787  $ 31,823
                               ========= ========= ========= =========

Net income                     $  7,648  $  7,009  $ 16,273  $ 20,164
                               ========= ========= ========= =========

Earnings per share - assuming
 dilution                      $   0.27  $   0.23  $   0.57  $   0.66
                               ========= ========= ========= =========

Weighted average shares
 outstanding - assuming
 dilution                        28,705    30,600    28,754    30,623
                               ========= ========= ========= =========

EBITDA (1)                     $ 22,211  $ 20,037  $ 45,444  $ 49,818
                               ========= ========= ========= =========


(a) The following is a summary of our income (loss) before income
 taxes (in thousands):

                               Three Months Ended   Six Months Ended
                               ------------------- -------------------
                               June 29,   July 1,  June 29,   July 1,
                                 2008      2007      2008      2007
                               --------- --------- --------- ---------

Domestic company-owned
 restaurants                   $  7,157  $  7,535  $ 14,955  $ 15,750
Domestic commissaries             7,624     7,917    16,057    17,931
Domestic franchising             13,095    12,065    27,567    25,108
International                    (1,520)   (2,032)   (3,259)   (4,352)
All others                        1,993     1,679     4,518     2,724
Unallocated corporate expenses   (9,144)   (7,486)  (18,363)  (15,781)
Elimination of intersegment
 profits                           (717)     (311)   (1,435)     (894)
                               --------- --------- --------- ---------
Income before income taxes,
 excluding VIEs                  18,488    19,367    40,040    40,486
VIEs, primarily BIBP (2)         (6,302)   (8,257)  (14,253)   (8,663)
                               --------- --------- --------- ---------
Total income before income
 taxes                         $ 12,186  $ 11,110  $ 25,787  $ 31,823
                               ========= ========= ========= =========
                  Summary Financial Data (continued)
                   Papa John's International, Inc.
                             (Unaudited)

The following is a reconciliation of EBITDA to net income (in
 thousands):

                                Three Months Ended  Six Months Ended
                                ------------------ -------------------
                                June 29,  July 1,  June 29,   July 1,
                                  2008      2007     2008      2007
                                --------- -------- --------- ---------

EBITDA (1)                       $22,211  $20,037  $ 45,444  $ 49,818
Income tax expense                (4,538)  (4,101)   (9,514)  (11,659)
Net interest                      (1,621)  (1,338)   (3,247)   (2,511)
Depreciation and amortization     (8,404)  (7,589)  (16,410)  (15,484)
                                --------- -------- --------- ---------
Net income                       $ 7,648  $ 7,009  $ 16,273  $ 20,164
                                ========= ======== ========= =========

(1) Management considers EBITDA to be a meaningful indicator of
     operating performance from 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.

(2) BIBP incurred an operating loss of $6.3 million in the second
     quarter of 2008, which was composed of losses associated with
     cheese sold to domestic company-owned restaurants and franchise
     restaurants of $1.4 million and $4.4 million, respectively. The
     remainder of the second quarter 2008 loss was primarily composed
     of interest expense on outstanding debt with a third-party bank
     and Papa John's. For the second quarter of 2007, BIBP reported an
     operating loss of $8.3 million, which was composed of losses
     associated with cheese sold to domestic company-owned restaurants
     and franchise restaurants of $1.9 million and $6.3 million,
     respectively. The remainder of the loss was primarily composed of
     interest expense on outstanding debt with a third-party bank.


    BIBP incurred an operating loss of $14.3 million for the six
     months ended June 29, 2008, which was composed of losses
     associated with cheese sold to domestic company-owned restaurants
     and franchise restaurants of $3.3 million and $9.9 million,
     respectively. The remainder of the 2008 loss was primarily
     composed of interest expense on outstanding debt with a third-
     party bank and Papa John's. For the six months ended July 1,
     2007, BIBP reported operating losses of $8.7 million, which was
     composed of losses associated with cheese sold to domestic
     company-owned restaurants and franchise restaurants of $2.4
     million and $6.2 million, respectively. The remainder of the 2007
     loss was primarily composed of interest expense on outstanding
     debt with a third-party bank.

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

           Papa John's International, Inc. and Subsidiaries
                  Consolidated Statements of Income


                         Three Months Ended       Six Months Ended
                       ----------------------- -----------------------
                        June 29,    July 1,     June 29,    July 1,
                           2008        2007        2008        2007
                       ----------------------- -----------------------
(In thousands, except
 per share amounts)    (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues:
 Domestic:
  Company-owned
   restaurant sales      $133,815    $119,633    $272,670    $241,677
  Variable interest
   entities restaurant
   sales                    2,239       1,602       4,279       3,289
  Franchise royalties      14,759      13,746      30,204      28,198
  Franchise and
   development fees           247         541       1,167       1,303
  Commissary sales        106,321      96,224     212,368     196,423
  Other sales              16,434      17,355      33,279      31,846
 International:
  Royalties and
   franchise and
   development fees         3,108       2,223       6,128       4,671
  Restaurant and
   commissary sales         6,485       4,932      12,318       9,473
                       ----------------------- -----------------------
Total revenues            283,408     256,256     572,413     516,880

Costs and expenses:
 Domestic Company-
  owned restaurant
  expenses:
  Cost of sales            30,803      25,829      62,375      50,917
  Salaries and
   benefits                40,050      35,928      81,610      72,872
  Advertising and
   related costs           11,913      11,159      24,610      22,062
  Occupancy costs           8,540       7,520      17,011      14,809
  Other operating
   expenses                18,072      16,411      36,379      32,804
                       ----------------------- -----------------------
 Total domestic
  Company-owned
  restaurant expenses     109,378      96,847     221,985     193,464

 Variable interest
  entities restaurant
  expenses                  1,987       1,352       3,780       2,731

 Domestic commissary
  and other expenses:
  Cost of sales            89,976      80,944     179,982     162,719
  Salaries and
   benefits                 9,127       9,006      18,092      17,804
  Other operating
   expenses                12,112      11,147      23,644      22,145
                       ----------------------- -----------------------
 Total domestic
  commissary and other
  expenses                111,215     101,097     221,718     202,668

Loss from the
 franchise cheese-
 purchasing program,
 net of minority
 interest                   4,364       6,277       9,922       6,178
International
 operating expenses         5,818       4,426      11,158       8,464
General and
 administrative
 expenses                  27,237      25,221      54,451      50,621
Minority interests and
 other general
 expenses                   1,198         999       3,955       2,936
Depreciation and
 amortization               8,404       7,589      16,410      15,484
                       ----------------------- -----------------------
Total costs and
 expenses                 269,601     243,808     543,379     482,546
                       ----------------------- -----------------------

Operating income           13,807      12,448      29,034      34,334
Net interest               (1,621)     (1,338)     (3,247)     (2,511)
                       ----------------------- -----------------------
Income before income
 taxes                     12,186      11,110      25,787      31,823
Income tax expense          4,538       4,101       9,514      11,659
                       ----------------------- -----------------------
Net income               $  7,648    $  7,009    $ 16,273    $ 20,164
                       ======================= =======================

Basic earnings per
 common share            $   0.27    $   0.23    $   0.57    $   0.67
                       ======================= =======================
Earnings per common
 share - assuming
 dilution                $   0.27    $   0.23    $   0.57    $   0.66
                       ======================= =======================

Basic weighted average
 shares outstanding        28,372      30,054      28,536      30,059
                       ======================= =======================
Diluted weighted
 average shares
 outstanding               28,705      30,600      28,754      30,623
                       ======================= =======================
           Papa John's International, Inc. and Subsidiaries
                Condensed Consolidated Balance Sheets

                                               June 29,   December 30,
                                                 2008         2007
                                              (Unaudited)    (Note)
                                              ----------- ------------
(In thousands)

Assets
Current assets:
  Cash and cash equivalents                    $    8,356  $     8,877
  Accounts receivable                              23,427       22,539
  Inventories                                      16,981       18,806
  Prepaid expenses                                  9,685       10,711
  Other current assets                              6,087        5,581
  Assets held for sale                              4,450            -
  Deferred income taxes                             8,430        7,147
                                              ----------- ------------
Total current assets                               77,416       73,661

Investments                                           855          825
Net property and equipment                        196,689      198,957
Notes receivable                                   11,597       11,804
Deferred income taxes                              18,400       12,384
Goodwill                                           83,194       86,505
Other assets                                       17,255       17,681
                                              ----------- ------------
Total assets                                   $  405,406  $   401,817
                                              =========== ============


Liabilities and stockholders' equity
Current liabilities:
  Accounts payable                             $   31,450  $    31,157
  Income and other taxes                           12,570       10,866
  Accrued expenses                                 54,923       56,466
  Current portion of debt                          12,225        8,700
                                              ----------- ------------
Total current liabilities                         111,168      107,189

Unearned franchise and development fees             5,791        6,284
Long-term debt, net of current portion            135,195      134,006
Other long-term liabilities                        26,810       27,435
                                              ----------- ------------
Total liabilities                                 278,964      274,914

Total stockholders' equity                        126,442      126,903
                                              ----------- ------------
Total liabilities and stockholders' equity     $  405,406  $   401,817
                                              =========== ============


Note: The balance sheet at December 30, 2007 has been derived from the
 audited consolidated financial statements at that date, but does not
 include all information and footnotes required by accounting
 principles generally accepted in the United States for a complete set
 of financial statements.

           Papa John's International, Inc. and Subsidiaries
                Consolidated Statements of Cash Flows


                                                  Six Months Ended
                                               -----------------------
                                                June 29,    July 1,
(In thousands)                                     2008        2007
                                               -----------------------
                                               (Unaudited) (Unaudited)
Operating activities
Net income                                       $ 16,273    $ 20,164
Adjustments to reconcile net income to net
 cash provided by operating activities:
     Restaurant closure, impairment and
      disposition losses (gains)                    1,167        (434)
     Provision for uncollectible accounts and
      notes receivable                              1,264       1,034
     Depreciation and amortization                 16,410      15,484
     Deferred income taxes                         (7,178)     (5,709)
     Stock-based compensation expense               2,567       1,855
     Excess tax benefit related to exercise of
      non-qualified stock options                    (117)     (3,025)
     Other                                            137       3,694
     Changes in operating assets and
      liabilities, net of acquisitions:
        Accounts receivable                        (2,251)      1,048
        Inventories                                 1,825       1,785
        Prepaid expenses                            1,026      (1,723)
        Other current assets                         (256)        908
        Other assets and liabilities               (1,233)       (892)
        Accounts payable                              293      (2,437)
        Income and other taxes                      1,704      (1,228)
        Accrued expenses                           (1,885)     (3,929)
        Unearned franchise and development
         fees                                        (494)       (351)
                                               ----------- -----------
Net cash provided by operating activities          29,252      26,244

Investing activities
Purchase of property and equipment                (16,010)    (16,433)
Purchase of investments                              (437)          -
Proceeds from sale or maturity of investments         407         671
Loans issued                                         (681)     (4,263)
Loan repayments                                     1,078       2,029
Acquisitions                                         (100)     (8,615)
Proceeds from divestitures of restaurants               -         632
Other                                                 156          27
                                               ----------- -----------
Net cash used in investing activities             (15,587)    (25,952)

Financing activities
Net proceeds from line of credit facility           1,102      19,500
Net proceeds from short-term debt - variable
 interest entities                                  3,525      10,250
Excess tax benefit related to exercise of non-
 qualified stock options                              117       3,025
Proceeds from exercise of stock options               965      10,323
Acquisition of Company common stock               (20,287)    (35,827)
Other                                                 339        (675)
                                               ----------- -----------
Net cash (used in) provided by financing
 activities                                       (14,239)      6,596

Effect of exchange rate changes on cash and
 cash equivalents                                      53          66
                                               ----------- -----------
Change in cash and cash equivalents                  (521)      6,954
Cash and cash equivalents at beginning of
 period                                             8,877      12,979
                                               ----------- -----------

Cash and cash equivalents at end of period       $  8,356    $ 19,933
                                               =========== ===========
Restaurant Progression
Papa John's International, Inc.

                                 Second Quarter Ended June 29, 2008
                               ---------------------------------------
                                  Corporate       Franchised
                               Domestic  Int'l  Domestic  Int'l Total
                               ---------------------------------------
Papa John's restaurants
Beginning of period                 648    17      2,122   451  3,238
Opened                                5     2         24    36     67
Closed                               (1)   (1)       (29)   (4)   (35)
Acquired                              -     -          -     -      -
Sold                                  -     -          -     -      -
                               ---------------------------------------
End of Period                       652    18      2,117   483  3,270
                               =======================================




                                  Second Quarter Ended July 1, 2007
                               ---------------------------------------
                                  Corporate       Franchised
                               Domestic  Int'l  Domestic  Int'l Total
                               ---------------------------------------
Papa John's restaurants
Beginning of period                 586     8      2,086   364  3,044
Opened                                9     -         38    18     65
Closed                               (2)    -        (15)   (2)   (19)
Acquired                             13     -          -     -     13
Sold                                  -     -        (13)    -    (13)
                               ---------------------------------------
End of Period                       606     8      2,096   380  3,090
                               =======================================
Restaurant Progression
Papa John's International, Inc.

                                   Six Months Ended June 29, 2008
                               ---------------------------------------
                                  Corporate       Franchised
                               Domestic  Int'l  Domestic  Int'l Total
                               ---------------------------------------
Papa John's restaurants
Beginning of period                 648    14      2,112   434  3,208
Opened                                9     5         46    55    115
Closed                               (6)   (1)       (40)   (6)   (53)
Acquired                              1     -          -     -      1
Sold                                  -     -         (1)    -     (1)
                               ---------------------------------------
End of Period                       652    18      2,117   483  3,270
                               =======================================




                                    Six Months Ended July 1, 2007
                               ---------------------------------------
                                  Corporate       Franchised
                               Domestic  Int'l  Domestic  Int'l Total
                               ---------------------------------------
Papa John's restaurants
Beginning of period                 577    11      2,080   347  3,015
Opened                               13     -         60    36    109
Closed                               (2)    -        (26)   (6)   (34)
Acquired                             19     -          1     3     23
Sold                                 (1)   (3)       (19)    -    (23)
                               ---------------------------------------
End of Period                       606     8      2,096   380  3,090
                               =======================================

CONTACT: Papa John's International, Inc.
David Flanery, Chief Financial Officer, 502-261-4753

SOURCE: Papa John's International, Inc.