Papa John‘s International, Inc.
Nov 6, 2007

Papa John's Reports Third Quarter 2007 Earnings

2007 Earnings Guidance Updated; Franchise Renewal Program and Royalty Rate Increase Announced



Highlights

    --  Third quarter earnings per diluted share of $0.16 in 2007 vs.
        $0.40 in 2006 ($0.39 in 2007 vs. $0.31 in 2006, excluding the
        consolidation of the company's franchisee-owned cheese
        purchasing entity, BIBP Commodities, Inc. (BIBP))

    --  Third quarter EPS includes $0.08 in 2007 and $0.03 in 2006
        from the finalization of certain income tax issues

    --  49 net Papa John's restaurant openings worldwide during the
        quarter

    --  Domestic system-wide comparable sales increase of 0.2% for the
        quarter

    --  Worldwide system sales increase of 4.3% for the quarter

    --  Earnings guidance for 2007 increased to a range of $1.64 to
        $1.68 per diluted share, excluding the impact of consolidating
        BIBP's results

    --  Franchise agreement renewal program announced, including a
        royalty rate increase

LOUISVILLE, Ky.--(BUSINESS WIRE)--Nov. 6, 2007--Papa John's International, Inc. (NASDAQ: PZZA) today announced revenues of $262.8 million for the third quarter of 2007, representing an increase of 9.6% from revenues of $239.7 million for the same period in 2006. Net income for the third quarter of 2007 was $4.8 million, or $0.16 per diluted share (including an after-tax loss of $7.0 million, or $0.23 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 $2.4 million, or $0.08 per diluted share, from the finalization of certain income tax issues), compared to 2006 third quarter net income of $13.1 million, or $0.40 per diluted share (including an after-tax gain of $3.0 million, or $0.09 per diluted share, from the consolidation of BIBP, and a gain of $950,000, or $0.03 per diluted share, from the finalization of certain income tax issues).

Revenues were $779.7 million for the nine months ended September 30, 2007, representing an increase of 7.7% from revenues of $723.6 million for the same period in 2006. Net income for the nine months ended September 30, 2007 was $25.0 million, or $0.82 per diluted share (including a net loss of $12.5 million or $0.41 per diluted share, from the consolidation of BIBP and a gain of $2.4 million, or $0.08 per diluted share, from the previously mentioned finalization of certain income tax issues), compared to last year's net income of $44.4 million, or $1.33 per diluted share (including an after-tax gain of $10.4 million, or $0.31 per diluted share, from the consolidation of BIBP and a gain of $950,000, or $0.03 per diluted share, from the previously mentioned finalization of certain income tax issues).

The following table summarizes the above-mentioned items impacting 2007 earnings per diluted share, as compared to the same periods presented for the prior year:

                               Three Months Ended   Nine Months Ended
                               ------------------- -------------------
                               Sept. 30, Sept. 24, Sept. 30, Sept. 24,
                                 2007      2006      2007      2006
                               --------- --------- --------- ---------

Earnings per diluted share, as
 reported                        $ 0.16    $ 0.40    $ 0.82    $ 1.33

Loss (Gain) from BIBP cheese
 purchasing entity                 0.23     (0.09)     0.41     (0.31)

(Gain) from finalization of
 certain income tax issues        (0.08)    (0.03)    (0.08)    (0.03)
                               --------- --------- --------- ---------

Earnings per diluted share,
 excluding noted items           $ 0.31    $ 0.28    $ 1.15    $ 0.99
                               ========= ========= ========= =========

"Our system had an excellent third quarter," commented Papa John's president and chief executive officer, Nigel Travis. "To run positive comp sales in this competitive market place, and against strong sales during the same period last year, is a testament to the strength of our brand. I am also pleased with our revenue and earnings growth for the quarter, and our outlook for the remainder of the year. We will continue to work hard to wow our customers with quality products and superior service to help our system manage through what continues to be a challenging cost environment."

Revenues Comparison

Consolidated revenues were $262.8 million for the third quarter of 2007, an increase of $23.1 million or 9.6%, over the corresponding 2006 period. The increase in revenues was principally due to an $18.8 million increase in domestic company-owned restaurant revenues, reflecting the acquisition of 54 domestic restaurants during the last five months of 2006 and the acquisition of 61 domestic restaurants during the first nine months of 2007. Other sales increased $2.5 million due to expanded commercial volumes at our print and promotions operations. International revenues increased $2.0 million due to the acquisition of five restaurants in Beijing, China in December 2006 and increased royalty revenues from additional franchised units.

For the nine-month period ending September 30, 2007, consolidated revenues increased $56.0 million, or 7.7%, principally due to the reasons mentioned above.

Operating Results and Cash Flow

Operating Results

Our pre-tax income from continuing operations for the third quarter of 2007 was $3.8 million, compared to $19.8 million for the corresponding period in 2006. For the nine months ended September 30, 2007, pre-tax income was $35.7 million compared to $68.8 million for the corresponding period in 2006. Excluding the impact of the consolidation of BIBP, third quarter 2007 pre-tax income from continuing operations was $14.5 million, which is substantially flat with 2006 comparable results, and pre-tax income for the nine months ended September 30, 2007 was $55.0 million, an increase of $3.2 million (6.3%) over the 2006 comparable results of $51.8 million. An analysis of the changes in pre-tax income from continuing operations for the three- and nine-month periods ended September 30, 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):

    --  Domestic Company-owned Restaurant Segment. Domestic
        company-owned restaurants' operating income for the three
        months ended September 30, 2007 was $3.5 million, or a
        decrease of $2.1 million, from the comparable 2006 period. For
        the nine-month period ended September 30, 2007, operating
        income was $19.2 million, or a decrease of $3.8 million, from
        the comparable 2006 period. The decline in operating income
        for the three- and nine-month periods is primarily due to an
        increase in wages (including the impact of a federal minimum
        wage increase in July 2007 and certain other minimum wage
        increases in various states), increased commodity costs and
        increased marketing expenditures at the local market level.
        The third quarter 2007 results also include a loss of $500,000
        associated with our plan to sell certain company-owned
        restaurants in one market. The nine-month period results were
        favorably impacted by a $594,000 pre-tax gain associated with
        the termination of a lease agreement in the second quarter of
        2007.

    --  Domestic Commissary Segment. Domestic commissaries' operating
        income increased approximately $1.5 million and $3.6 million
        for the three- and nine-month periods ended September 30,
        2007, respectively, from the comparable 2006 periods. These
        increases are principally due to increased volumes of higher
        margin fresh dough products and improved margins from other
        commodities.

    --  Domestic Franchising Segment. Domestic franchising operating
        income decreased $501,000 and $1.1 million for the three- and
        nine-month periods ended September 30, 2007, respectively,
        from the comparable 2006 periods. These decreases are
        principally due to costs associated with an increase in our
        field organizational support staff to improve the performance
        of our domestic franchise operations. Royalty revenue was
        flat, as an approximate 2.0% decrease in equivalent franchise
        units due to various acquisitions of franchise units by the
        company was offset by a reduction in royalty waivers granted
        to franchisees.

    --  International Segment. The international operating results,
        which exclude the Perfect Pizza operations in the United
        Kingdom that were sold in March 2006, reported losses of $2.0
        million and $6.4 million for the three- and nine-month periods
        ended September 30, 2007, respectively, compared to losses of
        $2.0 million and $6.8 million, respectively, in the same
        periods of the prior year. The improvement in the operating
        results for the nine-month period was due to the prior year
        results including a $470,000 charge incurred in the second
        quarter of 2006 related to management reorganization costs in
        one of our international operating units. Increased revenues
        in 2007 due to the growth in number of units and unit volumes
        were substantially offset by increased personnel and
        infrastructure investment costs.

    --  All Others Segment. The "All others" reporting segment
        reported operating earnings of $1.3 million and $4.0 million
        for the three- and nine-month periods ended September 30,
        2007, respectively, compared to $1.1 million and $3.8 million,
        respectively, in the same periods of the prior year. The
        increase of $242,000 in operating income for the three-month
        period was primarily due to an improvement in the operating
        results of our print and promotions operations, reflecting an
        increase in our sales to commercial customers. The increase of
        $249,000 for the nine-month period was primarily due to the
        improved operating results of our online operation. The
        nine-month period operating results at our print and
        promotions operations during 2007 are substantially the same
        as the 2006 results.

    --  Unallocated Corporate Segment. Unallocated corporate expenses
        decreased approximately $1.0 million and $4.0 million for the
        three- and nine-month periods ended September 30, 2007,
        respectively, as compared to the corresponding periods of
        2006. The decreases in both periods are primarily due to lower
        general and administrative costs, including management
        incentives (as more fully discussed below), health insurance
        and legal costs. The nine-month period decrease was also
        impacted by the collection of a $650,000 receivable, which had
        previously been reserved, from Papa Card, Inc., a nonstock,
        nonprofit corporation, which administers the Papa John's gift
        card program.

The following table summarizes our recorded expense (income) associated with our management incentive programs (in thousands):



                               Three Months Ended   Nine Months Ended
                               ------------------- -------------------
                               Sept. 30, Sept. 24, Sept. 30, Sept. 24,
                                 2007      2006      2007      2006
                               ---------------------------------------

Stock options                    $1,193     $1,187  $ 3,048    $ 3,069
Restricted stock                    511         71      759        119
Performance unit plan               (57)       856     (207)     2,209
Management incentive bonus
 plan                             1,200      1,587    2,950      5,539
                               ---------------------------------------
Total expense                    $2,847     $3,701  $ 6,550    $10,936
                               =======================================

Decrease                         $ (854)            $(4,386)
                               =========           =========

The decrease in the executive performance unit incentive plan expense for the three- and nine-month periods of 2007, as compared to the corresponding prior year periods, was primarily due to 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 the second quarter of 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 three- and nine-month periods in 2007 as compared to the corresponding prior year periods was primarily due to updated sales and operating income projections for the full year and the transition of the Founder Chairman to a non-employee director status.

Net interest expense included in the unallocated corporate segment, increased approximately $1.0 million and $3.5 million for the three- and nine-month periods ended September 30, 2007, 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. The increase in net interest costs was offset, in this operating segment, by an increase in allocations to the operating units receiving corporate support for the three- and nine-months ended September 30, 2007, as compared to the corresponding periods of 2006, partially due to an increase in the number of company-owned restaurants.

During the third quarter of 2007, the company recorded a $2.4 million reduction in its customary income tax expense due to the finalization of certain income tax issues. The effective income tax rate was 29.9% for the nine months ended September 30, 2007, compared to 36.1% in the corresponding 2006 period.

Cash Flow

Cash flow from continuing operations was $47.2 million in the first nine months of 2007 as compared to $67.9 million for the comparable period in 2006. The consolidation of BIBP decreased cash flow from operations by approximately $19.4 million in the first nine months of 2007 and increased cash flow from operations by approximately $17.0 million in the comparable period in 2006. Excluding the impact of the consolidation of BIBP, cash flow from continuing operations increased $15.7 million in the first nine months of 2007 as compared to the corresponding 2006 period, primarily due to an increase in net income and an improvement in working capital including accounts receivable, inventories and other liabilities.

Form 10-Q Filing

See the Management's Discussion and Analysis of Financial Condition and Results of Operations section of our quarterly report on Form 10-Q filed with the Securities and Exchange Commission for additional information concerning our operating results and cash flow for the three- and nine-month periods ended September 30, 2007.

Comparable Sales, System-wide Sales and Unit Count

Domestic system-wide comparable sales for the third quarter of 2007 increased 0.2% (composed of a 0.5% increase at company-owned restaurants and flat sales at franchised restaurants). Domestic system-wide comparable sales for the nine months ended September 30, 2007 decreased 0.2% (composed of a 0.1% decrease at company-owned restaurants and a 0.3% decrease at franchised restaurants). 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 increased 4.3% to $524.6 million for the third quarter of 2007 and increased 3.5% to $1.59 billion for the nine months ended September 30, 2007, as compared to the same periods of the prior year. The following table summarizes system-wide sales for the three- and nine-month periods ended September 30, 2007 and September 24, 2006, on an actual U.S. dollar basis (dollars in thousands):



                                             Three Months Ended
                                       ------------------------------
                                                           Percentage
                                       Sept. 30, Sept. 24,  Increase
                                         2007      2006    (Decrease)
                                       ------------------------------

Domestic:
   Company-owned                        $126,610  $107,793      17.5%
   Franchised                            352,607   359,070     (1.8%)
                                       ------------------------------
Total Domestic                           479,217   466,863       2.6%
International                             45,413    36,235      25.3%
                                       ------------------------------
Total System-wide Sales                 $524,630  $503,098       4.3%
                                       ==============================

                                             Nine Months Ended
                                      --------------------------------
                                                            Percentage
                                      Sept. 30,  Sept. 24,   Increase
                                         2007       2006    (Decrease)
                                      --------------------------------

Domestic:
   Company-owned                      $  368,287 $  319,957      15.1%
   Franchised                          1,093,082  1,116,279     (2.1%)
                                      --------------------------------
Total Domestic                         1,461,369  1,436,236       1.7%
International                            128,921    100,393      28.4%
                                      --------------------------------
Total System-wide Sales               $1,590,290 $1,536,629       3.5%
                                      ================================

During the third quarter of 2007, 38 domestic restaurants (two company-owned and 36 franchised) were opened, including ten franchised units in Live Nation amphitheaters under a previously announced agreement. Additionally, 29 international restaurants (one company-owned and 28 franchised) were opened, while 13 domestic and five international franchised restaurants were closed, resulting in 49 net openings worldwide for the quarter. There were 124 net openings worldwide for the first nine months of 2007. Our total domestic development pipeline as of September 30, 2007 included 335 restaurants scheduled to open over the next nine years.

At September 30, 2007, there were 3,139 Papa John's restaurants (660 company-owned and 2,479 franchised) operating in all 50 states and 27 countries. The company-owned unit count includes 130 restaurants operated in majority-owned domestic joint venture arrangements, the operating results of which are fully consolidated into the company's results.

Acquisition Activity

As previously disclosed, the company acquired 31 franchised Papa John's restaurants located in Missouri and Kansas on July 2, 2007. The purchase price of $10.3 million, of which approximately $7.2 million was recorded as goodwill, was paid in cash. In addition, during the third quarter of 2007, the company completed the acquisition of 11 franchised Papa John's restaurants located in the Washington, D.C. area through our 70% owned joint venture, Colonel's Limited, LLC. The purchase price of $6.1 million, of which approximately $4.7 million was recorded as goodwill, was paid in cash. At this time, the company does not expect to acquire a significant number of additional restaurants from the franchisees in the future.

International Update

A total of 29 restaurants were opened in international markets during the third quarter of 2007, of which nine were located in our fastest-growing markets, Korea and China. As of September 30, 2007, the company had a total of 412 corporate and franchised restaurants operating internationally, of which 129 were located in Korea and China. Our total international development pipeline as of September 30, 2007 included approximately 800 restaurants scheduled to open over the next nine years. During October 2007, we entered into a 40-unit development agreement in Poland and a 50-unit development agreement in Turkey. We expect the initial unit openings for both new countries will occur in 2008.

Share Repurchase Activity

The company repurchased approximately 990,000 shares of its common stock at an average price of $26.39 per share, or a total of $26.1 million, during the third quarter of 2007, and 2.2 million shares of its common stock at an average price of $27.99 per share, or a total of $61.9 million, during the first nine months of 2007. Subsequent to the third quarter of 2007, through October 31, 2007, the company repurchased an additional $10.9 million of common stock (471,000 shares at an average price of $23.21 per share). A total of 27,000 and 674,000 shares of common stock were issued upon the exercise of stock options for the three- and nine-month periods ended September 30, 2007, respectively.

There were 30.0 million diluted weighted average shares outstanding for the third quarter of 2007 as compared to 32.6 million for the same period in 2006. Approximately 29.2 million actual shares of the company's common stock were outstanding as of September 30, 2007. The company's board of directors has authorized the repurchase of up to an aggregate $675 million of common stock through December 30, 2007, which was substantially completed as of October 31, 2007.

The company's share repurchase activity increased earnings per diluted share from continuing operations by $0.01 for the nine-month period ended September 30, 2007 (no impact on the third quarter of 2007).

Franchise Agreement Renewals

The company today also announced the completion of the initial communication to its domestic franchisees of a Franchise Agreement Renewal Program (the Renewal Program). Substantially all existing franchise agreements have an initial 10-year term with a 10-year renewal option. Many of these original agreements have reached or will reach the end of their initial term in the next few years and will therefore require renewal.

The company collaborated with the Franchise Advisory Council, which consists of company and franchisee representatives of domestically owned restaurants, to develop a revised form of franchise agreement that will be available for execution upon renewal by existing franchisees (the Negotiated Agreement). The primary objectives of the negotiation of a revised form of franchise agreement included:

    --  Providing visibility to franchisees as to the potential timing
        and amount of future royalty rate increases;

    --  Ensuring minimum funding levels for the National Marketing
        Fund given the scale advantages of our larger competitors;

    --  Providing a funding mechanism for continued investment in
        maintaining and enhancing our online technological
        capabilities; and

    --  Addressing alternative marketing or other business
        developments to ensure the new form of franchise agreement is
        consistent and up to date.

Under the Renewal Program, the Company is offering certain renewal fee discounts to encourage all existing franchisees to renew under the Negotiated Agreement by December 31, 2007. Additionally, existing franchisees electing not to renew under the Negotiated Agreement by this date will be offered the then-current standard form of franchise agreement (the New Standard Agreement) upon their subsequent renewal.

One key provision of the Negotiated Agreement relates to the timing and amount of future royalty rate increases. A one-quarter percent increase in royalty rate, to 4.25%, has been announced effective in January 2008 for franchisees renewing under the Negotiated Agreement, which is expected to include the majority of franchisees. The royalty rate for all new franchisees and any existing franchisees who elect to renew under the New Standard Agreement will be 5% in 2008. Specific information related to this and other key provisions, including the expected financial impact on the company, is included in the company's Form 10-Q filing.

2007 Earnings Guidance Updated

In connection with the second quarter earnings release, the company revised the original earnings guidance for 2007, excluding the impact of the consolidation of BIBP, to a range of $1.56 to $1.60 per share. Based upon actual third quarter operating results, including the impact of the finalization of certain income tax issues, which resulted in an additional $0.08 of earnings per share, the company is updating its 2007 EPS guidance, excluding the impact of the consolidation of BIBP, to a range of $1.64 to $1.68 per share.

Our determination of the updated earnings guidance considered several factors, including the negative impact on our domestic company-owned restaurant operating results from the continued increases in commodities, such as the prices for cheese and wheat, as well as an increase in labor costs as a result of changes in federal and state minimum wage regulations.

We do not expect significant variances in the key operating assumption projections for full year 2007 included in our second quarter earnings release dated August 7, 2007, other than a modest increase in net interest expense and a modest decrease in average diluted shares as a result of share repurchase activity, and a reduction in net unit openings to a range of 180 to 200 net units due to a combination of slightly fewer projected openings and slightly greater projected closings.

Forward-Looking Statements

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 materially differ from those projected in these statements. Certain factors that can cause actual results to materially differ include: 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 timing of franchise agreement renewals; the possibility of impairment charges if our United Kingdom operations or recently acquired restaurants perform below our expectations; 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. 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 obtain high-quality ingredients and other commodities in a cost-effective manner; and differing interpretation of the obligations established in franchise agreements with international franchisees. 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.

Conference Call

A conference call is scheduled for November 7, 2007 at 10:00 EST to review third 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 4893059) for participation in the question and answer session. International participants may dial 706-679-8452 (pass code 4893059).

The conference call will be available for replay beginning November 7, 2007, at approximately noon through November 14, 2007, 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 4893059). International participants may dial 706-645-9291 (pass code 4893059).

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

                               Three Months Ended   Nine Months Ended
                               ------------------- -------------------
(In thousands, except per      Sept. 30, Sept. 24, Sept. 30, Sept. 24,
 share amounts)                  2007      2006      2007      2006
                               --------- --------- --------- ---------

Revenues                       $262,775  $239,692  $779,655  $723,634
                               ========= ========= ========= =========

Income from continuing
 operations before income
 taxes (1)                     $  3,839  $ 19,798  $ 35,662  $ 68,813
                               ========= ========= ========= =========

Net income                     $  4,827  $ 13,108  $ 24,991  $ 44,376
                               ========= ========= ========= =========

Earnings per share - assuming
 dilution                      $   0.16  $   0.40  $   0.82  $   1.33
                               ========= ========= ========= =========

Weighted average shares
 outstanding - assuming
 dilution                        30,027    32,583    30,435    33,296
                               ========= ========= ========= =========

EBITDA (A)                     $ 13,418  $ 27,101  $ 63,236  $ 89,972
                               ========= ========= ========= =========

(1) See information below on a reporting unit basis that separately
 identifies the impact of consolidating VIEs on income from continuing
 operations before income taxes.

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

Domestic company-owned
 restaurants                   $  3,493  $  5,562  $ 19,243  $ 23,012
Domestic commissaries             9,661     8,158    27,592    24,023
Domestic franchising             11,629    12,130    36,737    37,881
International                    (2,022)   (2,003)   (6,374)   (6,763)
VIEs, primarily BIBP            (10,707)    5,336   (19,370)   17,027
All others                        1,321     1,079     4,045     3,796
Unallocated corporate expenses   (9,369)  (10,354)  (25,150)  (29,172)
Elimination of intersegment
 profits                           (167)     (110)   (1,061)     (991)
                               --------- --------- --------- ---------
Income from continuing
 operations before income
 taxes                         $  3,839  $ 19,798  $ 35,662  $ 68,813
                               ========= ========= ========= =========

The following is a reconciliation of EBITDA to net income:

EBITDA (A)                     $ 13,418  $ 27,101  $ 63,236  $ 89,972
Income tax (expense) benefit        988    (6,690)  (10,671)  (24,826)
Net interest                     (1,668)     (629)   (4,179)   (1,321)
Depreciation and amortization    (7,911)   (6,674)  (23,395)  (19,838)
Income from discontinued
 operations, net of tax               -         -         -       389
                               --------- --------- --------- ---------
Net income                     $  4,827  $ 13,108  $ 24,991  $ 44,376
                               ========= ========= ========= =========

(A) 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.

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           Nine Months Ended
               --------------------------- ---------------------------
               September 30, September 24, September 30, September 24,
                   2007          2006          2007          2006
               --------------------------- ---------------------------
(In thousands,  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
 except per
 share amounts)
Revenues:
 Domestic:
   Company-
    owned
    restaurant
    sales      $126,610      $107,793      $368,287      $319,957
   Variable
    interest
    entities
    restaurant
    sales         1,862         1,320         5,151         6,457
   Franchise
    royalties    13,158        13,186        41,356        41,388
   Franchise
    and
    development
    fees            602           792         1,905         1,973
   Commissary
    sales        97,753        98,272       294,176       301,932
   Other sales   14,995        12,529        46,841        35,601
 International:
   Royalties
    and
    franchise
    and
    development
    fees          2,514         1,906         7,185         5,202
   Restaurant
    and
    commissary
    sales         5,281         3,894        14,754        11,124
               --------------------------- ---------------------------
Total revenues  262,775       239,692       779,655       723,634

Costs and
 expenses:
  Domestic
   Company-
   owned
   restaurant
   expenses:
   Cost of
    sales        28,950        21,309        79,867        61,837
   Salaries and
    benefits     38,369        32,291       111,241        95,044
   Advertising
    and related
    costs        12,998        10,385        35,060        29,398
   Occupancy
    costs         8,652         7,209        23,461        19,735
   Other
    operating
    expenses     17,330        14,580        50,134        42,157
               --------------------------- ---------------------------
  Total
   domestic
   Company-
   owned
   restaurant
   expenses     106,299        85,774       299,763       248,171

  Variable
   interest
   entities
   restaurant
   expenses       1,566         1,112         4,297         5,443

  Domestic
   commissary
   and other
   expenses:
   Cost of
    sales        81,006        79,957       243,725       245,366
   Salaries and
    benefits      8,692         7,991        26,496        23,307
   Other
    operating
    expenses     10,915        11,549        33,060        33,971
               --------------------------- ---------------------------
  Total
   domestic
   commissary
   and other
   expenses     100,613        99,497       303,281       302,644

Loss (income)
 from the
 franchise
 cheese-
 purchasing
 program, net
 of minority
 interest         7,854        (4,337)       14,032       (14,102)
International
 operating
 expenses         4,557         3,936        13,021        11,242
General and
 administrative
 expenses        27,282        26,427        77,903        77,057
Minority
 interests and
 other general
 expenses         1,186           182         4,122         3,207
Depreciation
 and
 amortization     7,911         6,674        23,395        19,838
               --------------------------- ---------------------------
Total costs and
 expenses       257,268       219,265       739,814       653,500
               --------------------------- ---------------------------

Operating
 income from
 continuing
 operations       5,507        20,427        39,841        70,134
Net interest     (1,668)         (629)       (4,179)       (1,321)
               --------------------------- ---------------------------
Income from
 continuing
 operations
 before income
 taxes            3,839        19,798        35,662        68,813
Income tax
 expense
 (benefit)         (988)        6,690        10,671        24,826
               --------------------------- ---------------------------

Income from
 continuing
 operations       4,827        13,108        24,991        43,987
Income from
 discontinued
 operations,
 net of tax           -             -             -           389
               --------------------------- ---------------------------
Net income     $  4,827      $ 13,108      $ 24,991      $ 44,376
               =========================== ===========================

Basic earnings
 per common
 share:
 Income from
  continuing
  operations   $   0.16      $   0.41      $   0.83      $   1.35
 Income from
  discontinued
  operations,
  net of tax          -             -             -          0.01
               --------------------------- ---------------------------
Basic earnings
 per common
 share         $   0.16      $   0.41      $   0.83      $   1.36
               =========================== ===========================

Earnings per
 common share -
 assuming
 dilution:
 Income from
  continuing
  operations   $   0.16      $   0.40      $   0.82      $   1.32
 Income from
  discontinued
  operations,
  net of tax          -             -             -          0.01
               --------------------------- ---------------------------
Earnings per
 common share -
 assuming
 dilution      $   0.16      $   0.40      $   0.82      $   1.33
               =========================== ===========================

Basic weighted
 average shares
 outstanding     29,708        31,957        29,942        32,556
               =========================== ===========================
Diluted
 weighted
 average shares
 outstanding     30,027        32,583        30,435        33,296
               =========================== ===========================
           Papa John's International, Inc. and Subsidiaries
                Condensed Consolidated Balance Sheets

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

Assets
Current assets:
  Cash and cash equivalents                      $  8,078     $ 12,979
  Accounts receivable                              21,100       23,326
  Inventories                                      22,622       26,729
  Prepaid expenses                                  5,780        7,779
  Other current assets                              5,979        7,368
  Deferred income taxes                             9,310        6,362
                                            ------------- ------------
Total current assets                               72,869       84,543

Investments                                           522        1,254
Net property and equipment                        202,015      197,722
Notes receivable                                   11,693       12,104
Deferred income taxes                               9,320        1,643
Goodwill                                           86,403       67,357
Other assets                                       17,745       15,016
                                            ------------- ------------
Total assets                                     $400,567     $379,639
                                            ============= ============


Liabilities and stockholders' equity
Current liabilities:
  Accounts payable                               $ 29,560     $ 29,202
  Income and other taxes                           11,118       15,136
  Accrued expenses                                 56,513       57,233
  Current portion of debt                          14,400          525
                                            ------------- ------------
Total current liabilities                         111,591      102,096

Unearned franchise and development fees             7,130        7,562
Long-term debt, net of current portion            124,508       96,511
Other long-term liabilities                        29,900       27,302
                                            ------------- ------------
Total liabilities                                 273,129      233,471

Total stockholders' equity                        127,438      146,168
                                            ------------- ------------
Total liabilities and stockholders' equity       $400,567     $379,639
                                            ============= ============


Note: The balance sheet at December 31, 2006 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


                                           Nine Months Ended
                                 -------------------------------------
(In thousands)                   September 30, 2007 September 24, 2006
                                 -------------------------------------
                                    (Unaudited)        (Unaudited)
Operating activities
Net income                                $ 24,991           $ 44,376
Results from discontinued
 operations (net of income taxes)                -               (389)
Adjustments to reconcile net
 income to net cash provided by
 operating activities:
     Provision for uncollectible
      accounts and notes
      receivable                             1,204              2,423
     Depreciation and
      amortization                          23,395             19,838
     Deferred income taxes                 (10,315)               803
     Stock-based compensation
      expense                                3,807              3,188
     Excess tax benefit related
      to exercise of non-
      qualified stock options               (3,047)            (4,128)
     Other                                   4,118              4,199
     Changes in operating assets
      and liabilities, net of
      acquisitions:
        Accounts receivable                  1,633             (2,717)
        Inventories                          4,099               (862)
        Prepaid expenses                     1,529              2,462
        Other current assets                 2,329              1,860
        Other assets and
         liabilities                        (2,514)            (5,087)
        Accounts payable                       295             (1,383)
        Income and other taxes              (3,404)              (501)
        Accrued expenses                      (511)             4,138
        Unearned franchise and
         development fees                     (432)              (360)
                                 ------------------ ------------------
Net cash provided by operating
 activities from continuing
 operations                                 47,177             67,860
Operating cash flows from
 discontinued operations                         -                414
                                 ------------------ ------------------
Net cash provided by operating
 activities                                 47,177             68,274

Investing activities
Purchase of property and
 equipment                                 (23,091)           (26,606)
Proceeds from sale of property
 and equipment                                  30                 69
Purchase of investments                          -             (2,014)
Proceeds from sale or maturity of
 investments                                   732              5,599
Loans issued                                (5,966)            (5,008)
Loan repayments                              5,839              6,848
Acquisitions                               (24,983)           (18,858)
Proceeds from divestiture of
 restaurants                                   632                  -
                                 ------------------ ------------------
Net cash from continuing
 operations used in investing
 activities                                (46,807)           (39,970)
Proceeds from divestiture of
 discontinued operations                         -              8,020
                                 ------------------ ------------------
Net cash used in investing
 activities                                (46,807)           (31,950)

Financing activities
Net proceeds from line of credit
 facility                                   28,000                500
Net proceeds (repayments) from
 short-term debt - variable
 interest entities                          13,875             (2,075)
Excess tax benefit related to
 exercise of non-qualified stock
 options                                     3,047              4,128
Proceeds from exercise of stock
 options                                    10,790             13,134
Acquisition of Company common
 stock                                     (61,943)           (63,969)
Other                                          862                177
                                 ------------------ ------------------
Net cash used in financing
 activities                                 (5,369)           (48,105)

Effect of exchange rate changes
 on cash and cash equivalents                   98                 78
                                 ------------------ ------------------
Change in cash and cash
 equivalents                                (4,901)           (11,703)
Cash and cash equivalents at
 beginning of period                        12,979             22,098
                                 ------------------ ------------------

Cash and cash equivalents at end
 of period                                $  8,078           $ 10,395
                                 ================== ==================
Restaurant Progression
Papa John's International, Inc.

                                Third Quarter Ended September 30, 2007
                                --------------------------------------
                                   Corporate       Franchised
                                 Domestic  Int'l Domestic Int'l Total
                                --------------------------------------
Papa John's restaurants
Beginning of period                   606      8   2,096   380  3,090
Opened                                  2      1      36    28     67
Closed                                 (1)     -     (12)   (5)   (18)
Acquired                               42      2       -     -     44
Sold                                    -      -     (42)   (2)   (44)
                                --------------------------------------
End of Period                         649     11   2,078   401  3,139
                                ======================================




                                Third Quarter Ended September 24, 2006
                                --------------------------------------
                                   Corporate       Franchised
                                 Domestic  Int'l Domestic Int'l Total
                                --------------------------------------
Papa John's restaurants
Beginning of period                   510      6   2,125   319  2,960
Opened                                  5      -      26    17     48
Closed                                  -      -     (22)   (8)   (30)
Acquired                               43      -       -     -     43
Sold                                    -      -     (43)    -    (43)
                                --------------------------------------
End of Period                         558      6   2,086   328  2,978
                                ======================================
Restaurant Progression
Papa John's International, Inc.

                                  Nine Months Ended September 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                                 15     1       96    64    176
Closed                                 (3)    -      (38)  (11)   (52)
Acquired                               61     2        1     3     67
Sold                                   (1)   (3)     (61)   (2)   (67)
                                  ------------------------------------
End of Period                         649    11    2,078   401  3,139
                                  ====================================




                                  Nine Months Ended September 24, 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                                 11     1       82    57    151
Closed                                 (1)    -      (47)  (51)   (99)
Acquired                               46     3        -     -     49
Sold                                    -     -      (46)   (3)   (49)
                                  ------------------------------------
End of Period                         558     6    2,086   328  2,978
                                  ====================================


                                  ------------------------------------
                                    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.