Severe weather in the Southeast and Atlantic coastal regions in September, and to a lesser extent in August, resulted in the temporary closure of a number of company-owned and franchise restaurants due to facility damage or regional power outages. The company estimates that the severe weather negatively impacted domestic system-wide sales results by approximately 0.8% for September and approximately 0.4% for the third quarter, with company-owned results somewhat more heavily impacted due to a higher relative geographic concentration of units.
The company noted that ticket averages increased over prior year results for both September and third quarter, reflecting the system-wide efforts to reduce the level of discounting or, in some cases, increase menu prices, particularly as related to the value-added "Pizza and Entertainment" promotional strategy.
Total system-wide international sales increased 6.6% for September and 5.0% for the quarter, on a constant U.S. dollar basis, over the comparable periods last year.
Earnings results for the third quarter will be released at the close of business on November 2, 2004. The company will update the anticipated impact on 2004 results of the consolidation of BIBP Commodities, Inc. (BIBP), the franchisee owned cheese-purchasing entity, based upon the most recent cheese block and futures market information available at that time. The company previously estimated a $0.70 reduction in 2004 earnings per share as a result of the BIBP consolidation in connection with the release of second quarter earnings results.
At September 26, 2004, there were 2,804 Papa John's restaurants (567 company-owned and 2,237 franchised) operating in 49 states and 18 international markets. Papa John's also franchises 121 Perfect Pizza restaurants in the United Kingdom. For more information about the company, visit Papa John's at http://www.papajohns.com.
Except for historical information, this announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect management's expectations based upon currently available information and data; however, actual results are subject to future events and uncertainties, which could cause actual results to differ materially from those projected in these statements. Certain factors that can cause actual results to differ materially include: the uncertainties associated with litigation; increased advertising, promotions and discounting by competitors that may adversely affect sales; new product and concept developments by food industry competitors; the ability of the company and its franchisees to open new restaurants and operate new and existing restaurants profitably; increases in food, labor, utilities, insurance, employee benefits and similar costs; and economic, political and public health conditions in the countries in which the company or its franchisees operate. These factors might be especially harmful to the financial viability of franchisees in under-penetrated or emerging markets, leading to greater unit closings than anticipated. Further information regarding factors that could affect the company's financial and other results is included in the company's Forms 10-Q and 10-K, filed with the Securities and Exchange Commission.
CONTACT: Papa John's International, Inc., Louisville
David Flanery, 502-261-4753
SOURCE: Papa John's International, Inc.