Papa John‘s International, Inc.
Feb 26, 2008

Papa John's Reports Fourth Quarter and Full-Year 2007 Earnings

2008 Earnings Guidance Reaffirmed

Refranchising Initiative Announced

Highlights

LOUISVILLE, Ky.--(BUSINESS WIRE)--Feb. 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.

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:



                                   Fourth Quarter       Full Year
                                  ----------------- ------------------
                                    2007     2006     2007     2006
                                  -------- -------- -------- ---------

Net Income, as reported           $ 7,744  $18,999  $32,735  $ 63,375

Impact of discontinued operations       -        -        -      (389)
Loss (Gain) from BIBP cheese
 purchasing entity                  8,021   (1,432)  20,525   (11,844)
Impact of 53rd week of operations       -   (2,205)       -    (2,205)
(Gain) from finalization of
 certain income tax issues           (993)  (1,575)  (3,408)   (2,525)
                                  -------- -------- -------- ---------

Net Income, excluding noted items $14,772  $13,787  $49,852  $ 46,412
                                  ======== ======== ======== =========
                                   Fourth Quarter       Full Year
                                  ----------------- ------------------
                                    2007     2006     2007     2006
                                  -------- -------- -------- ---------

Earnings per diluted share, as
 reported                         $  0.27  $  0.59  $  1.09  $   1.92

Impact of discontinued operations       -        -        -     (0.01)
Loss (Gain) from BIBP cheese
 purchasing entity                   0.28    (0.04)    0.68     (0.36)
Impact of 53rd week of operations       -    (0.07)       -     (0.07)
(Gain) from finalization of
 certain income tax issues          (0.03)   (0.05)   (0.11)    (0.08)
                                  -------- -------- -------- ---------

Earnings per diluted share,
 excluding noted items            $  0.52  $  0.43  $  1.66  $   1.40
                                  ======== ======== ======== =========

"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."

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:

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):

The decreases in both periods were due to the following:

                         Fourth Quarter              Full Year
                    ------------------------ -------------------------
                                   Increase                  Increase
                    Dec-07 Dec-06 (decrease) Dec-07  Dec-06 (decrease)
                    ------------------------ -------------------------
General and
 administrative     $1,929 $6,177   $(4,248) $17,515 $29,429 $(11,914)
Net interest         1,609    800       809    5,891   1,584    4,307
Depreciation         1,711  1,499       212    6,702   6,226      476
Other expenses       1,055   (125)    1,180    1,346     284    1,062
                    ------------------------ -------------------------
                    $6,304 $8,351   $(2,047) $31,454 $37,523 $ (6,069)
                    ======================== =========================

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.

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):



                                      Fourth Quarter     Full Year
                                      --------------- ----------------
                                       2007    2006     2007    2006
                                      --------------- ----------------

Equity compensation                   $1,145 $ 1,519  $ 4,883 $ 4,707
Performance unit plan                   (991)    305   (1,198)  2,503
Management incentive bonus plan         (600)    935    2,711   6,474
                                      --------------- ----------------
Total expense (income)                $ (446)$ 2,759  $ 6,396 $13,684
                                      =============== ================

Decrease                                     $(3,205)         $(7,288)
                                             ========         ========

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%.

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.

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):

                                             Three Months Ended
                                      --------------------------------
                                                            Percentage
                                       Dec. 30,   Dec. 31,   Increase
                                         2007     2006 (1)  (Decrease)
                                      --------------------------------

Domestic:
  Company-owned                       $  136,043 $  127,981      6.3%
  Franchised                             371,845    394,186     (5.7%)
                                      --------------------------------
Total Domestic                           507,888    522,167     (2.7%)
International                             51,271     40,280     27.3%
                                      --------------------------------
Total System-wide Sales               $  559,159 $  562,447     (0.6%)
                                      ================================

                                                 Year Ended
                                      --------------------------------
                                                            Percentage
                                       Dec. 30,   Dec. 31,   Increase
                                         2007     2006 (1)  (Decrease)
                                      --------------------------------

Domestic:
  Company-owned                       $  504,330 $  447,938     12.6%
  Franchised                           1,464,928  1,510,465     (3.0%)
                                      --------------------------------
Total Domestic                         1,969,258  1,958,403      0.6%
International                            180,194    140,673     28.1%
                                      --------------------------------
Total System-wide Sales               $2,149,452 $2,099,076      2.4%
                                      ================================

(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 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 100th 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.

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 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 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).

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


                           Three Months Ended        Year Ended
                          -------------------- -----------------------
                          Dec. 30,   Dec. 31,   Dec. 30,    Dec. 31,
(In thousands, except per
 share amounts)             2007     2006 (1)     2007      2006 (1)
                          --------- ---------- ----------- -----------

Revenues                  $283,940  $ 277,923  $1,063,595  $1,001,557
                          ========= ========== =========== ===========

Income from continuing
 operations before income
 taxes (a)                $ 10,366  $  27,344  $   46,028  $   96,157
                          ========= ========== =========== ===========

Net income                $  7,744  $  18,999  $   32,735  $   63,375
                          ========= ========== =========== ===========

Earnings per share -
 assuming dilution        $   0.27  $    0.59  $     1.09  $     1.92
                          ========= ========== =========== ===========

Weighted average shares
 outstanding - assuming
 dilution                   28,985     32,230      30,017      33,046
                          ========= ========== =========== ===========

EBITDA (2)                $ 20,677  $  35,191  $   83,913  $  125,163
                          ========= ========== =========== ===========


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

                           Three Months Ended        Year Ended
                          -------------------- -----------------------
                          Dec. 30,   Dec. 31,   Dec. 30,    Dec. 31,
                            2007     2006 (1)     2007      2006 (1)
                          --------- ---------- ----------- -----------

Domestic company-owned
 restaurants              $  6,164  $  10,164  $   25,407  $   33,176
Domestic commissaries        8,255     10,667      35,847      34,690
Domestic franchising        14,729     13,662      51,466      51,543
International               (2,360)    (2,111)     (8,734)     (8,874)
All others                   2,303      1,832       6,348       5,628
Unallocated corporate
 expenses                   (6,304)    (8,351)    (31,454)    (37,523)
Elimination of
 intersegment profits          (82)      (479)     (1,143)     (1,470)
                          --------- ---------- ----------- -----------
Income from continuing
 operations before income
 taxes, exluding VIEs       22,705     25,384      77,737      77,170
VIEs, primarily BIBP (3)   (12,339)     1,960     (31,709)     18,987
                          --------- ---------- ----------- -----------
Total income from
 continuing operations
 before income taxes      $ 10,366  $  27,344  $   46,028  $   96,157
                          ========= ========== =========== ===========

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


The following is a reconciliation of EBITDA to net income:

                              Three Months Ended       Year Ended
                              ------------------- --------------------
                              Dec. 30,  Dec. 31,  Dec. 30,   Dec. 31,
                                2007    2006 (1)    2007     2006 (1)
                              -------- ---------- --------- ----------

EBITDA (2)                    $20,677  $  35,191  $ 83,913  $ 125,163
Income tax expense             (2,622)    (8,345)  (13,293)   (33,171)
Net interest                   (1,840)      (477)   (6,019)    (1,798)
Depreciation and amortization  (8,471)    (7,370)  (31,866)   (27,208)
Income from discontinued
 operations, net of tax             -          -         -        389
                              -------- ---------- --------- ----------
Net income                    $ 7,744  $  18,999  $ 32,735  $  63,375
                              ======== ========== ========= ==========

(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.


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


                           Three Months Ended         Year Ended
                         ---------------------- ----------------------
                          December   December    December   December
                           30, 2007   31, 2006    30, 2007   31, 2006
                         ---------------------- ----------------------
(In thousands, except    (Unaudited)(Unaudited)
 per share amounts)
Revenues:
  Domestic:
    Company-owned
     restaurant sales      $136,043   $127,981  $  504,330 $  447,938
    Variable interest
     entities restaurant
     sales                    1,980      1,402       7,131      7,859
    Franchise royalties      13,927     14,986      55,283     56,374
    Franchise and
     development fees         2,853        624       4,758      2,597
    Commissary sales        104,923    111,143     399,099    413,075
    Other sales              14,979     14,904      61,820     50,505
  International:
    Royalties and
     franchise and
     development fees         3,129      2,349      10,314      7,551
    Restaurant and
     commissary sales         6,106      4,534      20,860     15,658
                         ---------------------- ----------------------
Total revenues              283,940    277,923   1,063,595  1,001,557

Costs and expenses:
  Domestic Company-owned
   restaurant expenses:
    Cost of sales            32,906     26,474     112,773     88,311
    Salaries and
     benefits                40,802     36,902     152,043    131,946
    Advertising and
     related costs           12,061     11,881      47,121     41,279
    Occupancy costs           8,405      7,510      31,866     27,245
    Other operating
     expenses                18,326     16,667      68,460     58,824
                         ---------------------- ----------------------
  Total domestic
   Company-owned
   restaurant expenses      112,500     99,434     412,263    347,605

  Variable interest
   entities restaurant
   expenses                   1,721      1,265       6,018      6,708

  Domestic commissary
   and other expenses:
    Cost of sales            88,438     91,293     332,163    336,659
    Salaries and
     benefits                 8,126      9,056      34,622     32,363
    Other operating
     expenses                10,706     11,182      43,766     45,153
                         ---------------------- ----------------------
  Total domestic
   commissary and other
   expenses                 107,270    111,531     410,551    414,175

Loss (income) from the
 franchise cheese-
 purchasing program, net
 of minority interest         8,821     (1,145)     22,853    (15,247)
International operating
 expenses                     5,697      4,582      18,718     15,824
General and
 administrative expenses     23,437     25,863     101,340    102,920
Minority interests and
 other general expenses       3,817      1,202       7,939      4,409
Depreciation and
 amortization                 8,471      7,370      31,866     27,208
                         ---------------------- ----------------------
Total costs and expenses    271,734    250,102   1,011,548    903,602
                         ---------------------- ----------------------

Operating income from
 continuing operations       12,206     27,821      52,047     97,955
Net interest                 (1,840)      (477)     (6,019)    (1,798)
                         ---------------------- ----------------------
Income from continuing
 operations before
 income taxes                10,366     27,344      46,028     96,157
Income tax expense            2,622      8,345      13,293     33,171
                         ---------------------- ----------------------

Income from continuing
 operations                   7,744     18,999      32,735     62,986
Income from discontinued
 operations, net of tax           -          -           -        389
                         ---------------------- ----------------------
Net income                 $  7,744   $ 18,999  $   32,735 $   63,375
                         ====================== ======================

Basic earnings per
 common share:
  Income from continuing
   operations              $   0.27   $   0.60  $     1.10 $     1.95
  Income from
   discontinued
   operations, net of
   tax                            -          -           -       0.01
                         ---------------------- ----------------------
Basic earnings per
 common share              $   0.27   $   0.60  $     1.10 $     1.96
                         ====================== ======================

Earnings per common
 share - assuming
 dilution:
  Income from continuing
   operations              $   0.27   $   0.59  $     1.09 $     1.91
  Income from
   discontinued
   operations, net of
   tax                            -          -           -       0.01
                         ---------------------- ----------------------
Earnings per common
 share - assuming
 dilution                  $   0.27   $   0.59  $     1.09 $     1.92
                         ====================== ======================

Basic weighted average
 shares outstanding          28,837     31,631      29,666     32,312
                         ====================== ======================
Diluted weighted average
 shares outstanding          28,985     32,230      30,017     33,046
                         ====================== ======================

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.

           Papa John's International, Inc. and Subsidiaries
                Condensed Consolidated Balance Sheets


                                             December 30, December 31,
                                                 2007         2006
                                                (Note)       (Note)
                                             ------------ ------------
(In thousands)

Assets
Current assets:
  Cash and cash equivalents                  $      8,877 $     12,979
  Accounts receivable                              22,539       23,326
  Inventories                                      18,806       26,729
  Prepaid expenses                                 10,711        7,779
  Other current assets                              5,581        7,368
  Deferred income taxes                             7,147        6,362
                                             ------------ ------------
Total current assets                               73,661       84,543

Investments                                           825        1,254
Net property and equipment                        198,957      197,722
Notes receivable                                   11,804       12,104
Deferred income taxes                              12,384        1,643
Goodwill                                           86,505       67,357
Other assets                                       17,681       15,016
                                             ------------ ------------
Total assets                                 $    401,817 $    379,639
                                             ============ ============


Liabilities and stockholders' equity
Current liabilities:
  Accounts payable                           $     31,157 $     29,202
  Income and other taxes                           10,866       15,136
  Accrued expenses                                 56,466       57,233
  Current portion of debt                           8,700          525
                                             ------------ ------------
Total current liabilities                         107,189      102,096

Unearned franchise and development fees             6,284        7,562
Long-term debt, net of current portion            134,006       96,511
Other long-term liabilities                        27,435       27,302
                                             ------------ ------------
Total liabilities                                 274,914      233,471

Total stockholders' equity                        126,903      146,168
                                             ------------ ------------
Total liabilities and stockholders' equity   $    401,817 $    379,639
                                             ============ ============


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.

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


                                                       Year Ended
                                                  --------------------
(In thousands)                                    December  December
                                                   30, 2007  31, 2006
                                                  --------------------

Operating activities
Net income                                        $ 32,735  $  63,375
Income from discontinued operations (net of income
 taxes)                                                  -       (389)
Adjustments to reconcile net income to net cash
 provided by operating activities:
  Restaurant closure, impairment and disposition
   losses (gains)                                    1,444       (260)
  Provision for uncollectible accounts and notes
   receivable                                        1,718      3,445
  Depreciation and amortization                     31,866     27,208
  Deferred income taxes                            (10,779)     3,191
  Stock-based compensation expense                   4,883      4,707
  Excess tax benefit related to exercise of non-
   qualified stock options                          (3,325)    (6,533)
  Other                                              5,927      5,158
  Changes in operating assets and liabilities, net
   of acquisitions:
    Accounts receivable                               (183)    (6,020)
    Inventories                                      7,915       (583)
    Prepaid expenses                                (3,402)    (2,148)
    Other current assets                             2,468       (630)
    Other assets and liabilities                    (7,092)    (7,211)
    Accounts payable                                 1,893     (2,168)
    Income and other taxes                          (3,656)    (1,726)
    Accrued expenses                                   457      5,465
    Unearned franchise and development fees         (1,278)       306
                                                  --------- ----------
Net cash provided by operating activities from
 continuing operations                              61,591     85,187
Operating cash flows from discontinued operations        -        414
                                                  --------- ----------
Net cash provided by operating activities           61,591     85,601

Investing activities
Purchase of property and equipment                 (31,148)   (39,352)
Purchase of investments                               (303)    (2,014)
Proceeds from sale or maturity of investments          731      6,983
Loans issued                                        (6,541)    (6,181)
Loan repayments                                      6,257      9,339
Acquisitions                                       (24,983)   (31,943)
Proceeds from divestitures of restaurants              632      1,300
Other                                                   32        286
                                                  --------- ----------
Net cash from continuing operations used in
 investing activities                              (55,323)   (61,582)
Proceeds from divestiture of discontinued
 operations                                              -      8,020
                                                  --------- ----------
Net cash used in investing activities              (55,323)   (53,562)

Financing activities
Net proceeds from line of credit facility           37,500     47,500
Net proceeds (repayments) from short-term debt -
 variable interest entities                          8,175     (5,575)
Excess tax benefit related to exercise of non-
 qualified stock options                             3,325      6,533
Proceeds from exercise of stock options             12,219     15,214
Acquisition of Company common stock                (72,871)  (106,292)
Other                                                1,035      1,293
                                                  --------- ----------
Net cash used in financing activities              (10,617)   (41,327)

Effect of exchange rate changes on cash and cash
 equivalents                                           247        169
                                                  --------- ----------
Change in cash and cash equivalents                 (4,102)    (9,119)
Cash and cash equivalents at beginning of period    12,979     22,098
                                                  --------- ----------

Cash and cash equivalents at end of period        $  8,877  $  12,979
                                                  ========= ==========

Note: The cash flows 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. The full-year period in 2006 includes
 one additional week of operations.

Restaurant Progression
Papa John's International, Inc.

                            Fourth Quarter Ended December 30, 2007
                        ----------------------------------------------
                            Corporate        Franchised
                         Domestic  Int'l   Domestic  Int'l    Total
                        ----------------------------------------------
Papa John's restaurants
Beginning of period           649      11     2,078    401      3,139
Opened                          5       3        44     35         87
Closed                         (6)      -       (10)    (2)       (18)
Acquired                        -       -         -      -          -
Sold                            -       -         -      -          -
                        ----------------------------------------------
End of Period                 648      14     2,112    434      3,208
                        ==============================================


                            Fourth Quarter Ended December 31, 2006
                        ----------------------------------------------
                            Corporate        Franchised
                         Domestic  Int'l   Domestic  Int'l    Total
                        ----------------------------------------------
Papa John's restaurants
Beginning of period           558       6     2,086    328      2,978
Opened                          8       -        23     29         60
Closed                          -       -       (18)    (5)       (23)
Acquired                       11       5         -      -         16
Sold                            -       -       (11)    (5)       (16)
                        ----------------------------------------------
End of Period                 577      11     2,080    347      3,015
                        ==============================================

Restaurant Progression
Papa John's International, Inc.

                                  Year Ended December 30, 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                           20        4        140     99    263
Closed                           (9)       -        (48)   (13)   (70)
Acquired                         61        2          1      3     67
Sold                             (1)      (3)       (61)    (2)   (67)
                          --------------------------------------------
End of Period                   648       14      2,112    434  3,208
                          ============================================


                                  Year Ended December 31, 2006
                          --------------------------------------------
                               Corporate         Franchised
                           Domestic   Int'l    Domestic  Int'l  Total
                          --------------------------------------------
Papa John's restaurants
Beginning of period             502        2      2,097    325  2,926
Opened                           19        1        105     86    211
Closed                           (1)       -        (65)   (56)  (122)
Acquired                         57        8          -      -     65
Sold                              -        -        (57)    (8)   (65)
                          --------------------------------------------
End of Period                   577       11      2,080    347  3,015
                          ============================================


                          --------------------------------------------
                               Corporate         Franchised
                           Domestic   Int'l    Domestic  Int'l  Total
                          --------------------------------------------
Perfect Pizza restaurants
Beginning of period               -        -          -    112    112
Closed                            -        -          -     (3)    (3)
Sold                              -        -          -   (109)  (109)
                          --------------------------------------------
End of Period                     -        -          -      -      -
                          ============================================


Note: The PJUK Perfect Pizza operations were sold in March 2006.

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

SOURCE: Papa John's International, Inc.