Papa John‘s International, Inc.
Feb 27, 2007

Papa John's Reports Fourth Quarter and Full-Year 2006 Earnings

2007 Earnings Guidance Reaffirmed

LOUISVILLE, Ky.--(BUSINESS WIRE)--Feb. 27, 2007--Papa John's International, Inc. (NASDAQ: PZZA):

Papa John's International, Inc. (NASDAQ: PZZA) today announced revenues of $277.9 million for the fourth quarter of 2006, representing an increase of 11.9% from revenues of $248.4 million for the same period in 2005. Net income for the fourth quarter of 2006 was $19.0 million, or $0.59 per diluted share (including a net gain of $1.4 million, or $0.04 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 $1.6 million, or $0.05 per diluted share, from the settlement of certain income tax issues), compared to last year's net income of $14.4 million, or $0.42 per diluted share (including a net income gain of $2.0 million, or $0.06 per diluted share, from the consolidation of BIBP). Excluding the impact of BIBP, pre-tax income from continuing operations for the fourth quarter of 2006 increased $6.9 million (or $0.14 per diluted share, after-tax) from the corresponding 2005 period. As more fully described below, the fourth quarter 2006 pre-tax income results benefited approximately $3.5 million, or $0.07 per diluted share, from an additional week of operations.

Revenues were $1.0 billion for 2006, representing an increase of 3.4% from 2005 revenues of $968.8 million. Net income for 2006 was $63.4 million, or $1.92 per diluted share (including a net income gain of $11.8 million, or $0.36 per diluted share, from the consolidation of BIBP, and $0.08 per diluted share from the previously mentioned settlement of certain income tax issues), compared to last year's net income of $46.1 million, or $1.34 per diluted share (including a net income gain of $2.8 million, or $0.08 per diluted share, from the consolidation of BIBP). Excluding the impact of BIBP, pre-tax income from continuing operations increased $12.0 million (or $0.23 per diluted share, after-tax) in 2006 from the corresponding 2005 period, including the benefit of the 53rd 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 table summarizes the above-mentioned items impacting 2006 earnings per diluted share, as compared to the same periods presented for the prior year:

                                       Fourth Quarter     Full Year
                                       --------------- ---------------
                                        2006    2005    2006    2005
                                       ------- ------- ------- -------


Earnings per common share - assuming
 dilution                               $0.59   $0.42   $1.92   $1.34
Impact of discontinued operations           -   (0.01)  (0.01)  (0.05)
Impact of the consolidation of BIBP
  Commodities, Inc.                     (0.04)  (0.06)  (0.36)  (0.08)
Impact of 53rd week of operations       (0.07)      -   (0.07)      -
Impact of settlement of certain tax
 issues                                 (0.05)      -   (0.08)      -
                                       ------- ------- ------- -------

Earnings per diluted share, excluding
 the above items                        $0.43   $0.35   $1.40   $1.21
                                       ======= ======= ======= =======

"We are very proud of our 2006 performance," commented Papa John's president and chief executive officer, Nigel Travis. "In 2006, Papa John's posted the highest domestic comps among national chains, and for an unprecedented seventh consecutive year, consumers rated Papa John's number one among all QSR chains in the prestigious American Customer Satisfaction Index (ACSI)."

Revenues Comparison

Consolidated revenues were $277.9 million for the fourth quarter of 2006, an increase of 11.9% or $29.5 million, including $20.0 million from the additional week of operations mentioned above, over the corresponding 2005 period. Company-owned restaurant sales increased $22.0 million ($13.0 million increase excluding the additional week of operations) due to an increase in the number of equivalent company-owned restaurants open in the 2006 period compared to 2005, reflecting the acquisition of 57 domestic restaurants from franchisees during 2006. Comparable sales at company-owned restaurants for the fourth quarter were relatively flat year-over-year. The remainder of the increase in revenues for the fourth quarter of 2006, as compared to the corresponding 2005 period, was primarily due to the additional week of operations, partially offset by the impact of lower cheese costs on commissary revenues.

For the full-year 2006, consolidated revenues increased $32.8 million to $1.0 billion, or 3.4%, as compared to the full-year 2005. Company-owned restaurant sales increased $13.4 million as an increase in comparable sales of 3.6% and the impact of the 53rd week of operations more than offset a reduction in equivalent units, reflecting the sale of 84 units at the beginning of the fourth quarter of 2005 (the acquisition of 57 franchise restaurants mentioned above substantially occurred in the last five months of 2006). Commissary revenues increased $14.7 million primarily due to increased volumes, which more than offset the impact of lower year-over-year cheese costs. Franchise royalties increased $4.1 million due to a 2.9% increase in comparable sales and additional equivalent units for the full year. Additionally, international revenues increased $4.8 million primarily as a result of additional company-owned restaurants located in the United Kingdom and Mexico. The increases were partially offset by a $3.9 million decrease in revenues for restaurants consolidated as variable interest entities (VIEs). The decrease in revenues from VIE restaurants is a result of the sale of restaurants by two franchisees to third parties during 2005 and 2006, which eliminated the VIE consolidation of such restaurants under Interpretation No. 46, Consolidation of Variable Interest Entities, an Interpretation of Accounting Research Bulletin No. 51 (FIN 46), and the related consolidation of their operating results, at the time of the respective sales.

Operating Results and Cash Flow

Operating Results

Our pre-tax income from continuing operations for the fourth quarter of 2006 was $27.3 million compared to $21.7 million for the corresponding period in 2005. For the full-year 2006, pre-tax income from continuing operations was $96.2 million compared to $69.6 million for the corresponding period in 2005. Excluding the impact of the consolidation of BIBP, fourth quarter 2006 pre-tax income from continuing operations was $25.4 million, an increase of $6.9 million over 2005 comparable results, and pre-tax income for the full-year 2006 was $77.2 million, an increase of $12.0 million over 2005 comparable results. The increases of $6.9 million and $12.0 million, respectively, in pre-tax income from continuing operations for the three months and full year ended December 31, 2006 (excluding the consolidation of BIBP) include approximately $3.5 million related to the 53rd week of operations in 2006 as noted above and are principally due to the following (analyzed on a segment basis -- see the Summary Financial Data table that follows for the reconciliation of segment income to consolidated income below):

The increase in equity compensation and executive performance unit incentive compensation in 2006 was due to the following:

Stock options were awarded to management in late March 2005 and April 2006, each with a two-year cliff vesting period. The company also granted performance-based restricted stock during the second quarter of 2006 to certain employees with a performance period of three years. There were no such grants awarded in 2004; accordingly, the timing and layering effect of the vesting provisions of the 2005 and 2006 equity-based awards resulted in an increase in expense recognition in 2006 as compared to 2005. Stock compensation expense recognized for the three months and full year ended December 31, 2006 was $1.4 million and $4.5 million, respectively, as compared to $720,000 and $2.4 million for the corresponding 2005 periods.



Additionally, performance units were awarded in 2005 and 2006 to certain members of management with each award having a three-year performance period; no such awards were made prior to 2005. Further, the ultimate cost associated with the performance units is based on the company's ending stock price and total shareholder return relative to a peer group over the three-year performance period ending in December 2007 for the 2005 program and December 2008 for the 2006 program, with the award value paid in cash following the end of the respective performance periods. The total expense related to the 2005 and 2006 performance unit programs was approximately $384,000 in the fourth quarter of 2006 as compared to $747,000 in the fourth quarter of 2005 and $2.7 million for the full-year 2006 as compared to $1.8 million for the corresponding 2005 period.

Net interest expense for the three-month period ended December 31, 2006 was flat, as compared to the corresponding 2005 period. For the full-year 2006, net interest expense decreased $1.3 million principally due to a decrease in our average outstanding debt balance during the year and an increase in investment income.

The income tax rate was 30.5% and 34.5% for the three months and full year ended December 31, 2006, respectively, compared to 35.2% and 36.4% for the corresponding 2005 periods. The decrease in the effective tax rate in 2006 was primarily due to the settlement of certain income tax issues of approximately $2.5 million. Our estimated tax rate for 2007 is approximately 36.5%, excluding the impact of the future potential favorable settlement of other income tax issues, the likelihood of which cannot be estimated with any certainty at this time.

Cash Flow

Cash flow provided by operating activities from continuing operations was $85.2 million for 2006 as compared to $82.1 million for 2005. The consolidation of BIBP increased cash flow from operations by approximately $19.0 million and $4.5 million in 2006 and 2005, respectively. Excluding the impact of the consolidation of BIBP, cash flow from continuing operations decreased $11.4 million in 2006 as compared to 2005, primarily due to unfavorable working capital changes with accounts receivable and other liabilities. The 2005 operating cash flows were favorably impacted by the collection of unusually high prior year accounts receivable balances. The 2006 operating cash flows were negatively impacted by increased payments of claims liabilities related to insurance policies issued by the company's captive insurance subsidiary in 2000 through 2004. In addition, a decrease in cash flow from continuing operations occurred due to the classification in 2006 of $6.5 million of excess tax benefits related to the exercise of non-qualified stock options from operating activities to financing activities, as required by Statement of Financial Accounting Standards (SFAS) No. 123®, Share-Based Payment.

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 operating results and cash flows for the full year ended December 31, 2006.

Comparable Sales and Unit Count

As previously announced, domestic system-wide comparable sales for the fourth quarter decreased 0.5% (composed of a 0.3% increase at company-owned restaurants and a 0.7% decrease at franchised restaurants). Total system-wide international sales for Papa John's branded units increased 37.4% for the quarter, on a constant U.S. dollar basis, over the comparable period last year (27.2% excluding the impact of the 53rd week of operations in 2006).

Domestic system-wide comparable sales for the full year ended December 31, 2006 increased 3.1% (composed of a 3.6% increase at company-owned restaurants and a 2.9% increase at franchised restaurants). Total system-wide international sales for Papa John's branded units increased 30.4% for the full year, on a constant U.S. dollar basis, over the comparable period last year (27.6% excluding the impact of the 53rd week of operations in 2006).

The company announced during the fourth quarter that December 2006 would be the last month for reporting monthly domestic comparable sales results. Beginning in 2007, domestic comparable sales results will be reported on a quarterly basis, aligning with the reporting methodology of our two primary national competitors. In addition to avoiding the potential competitive disadvantage of continuing to report monthly, we believe reporting on a quarterly basis will provide a more meaningful view of our long-term performance trends and strategies.

During the fourth quarter of 2006, 31 domestic (8 company-owned and 23 franchised) and 29 international franchised restaurants were opened while 18 domestic and 5 international franchised restaurants were closed. During the full-year 2006, 124 domestic (19 company-owned and 105 franchised) and 87 international (one company-owned and 86 franchised) restaurants were opened while 66 domestic (one company-owned and 65 franchised) and 56 international Papa John's restaurants were closed. Our total domestic development pipeline as of December 31, 2006 included approximately 300 restaurants scheduled to open over the next seven years.

At December 31, 2006, there were 3,015 Papa John's restaurants (588 company-owned and 2,427 franchised) operating in 49 states and 26 countries. The company-owned unit count includes 117 restaurants operated in majority-owned domestic joint venture arrangements, the operating results of which are fully consolidated into the company's results.

Acquisition / Divestiture Activity

The company acquired 11 franchised restaurants in the Raleigh, North Carolina market effective September 25, 2006 (beginning of period 10). Effective December 5, 2006, the company acquired the operations of our Beijing, China franchisee, consisting of five restaurants, a quality control center and the return of the initial rights for the development of Papa John's restaurants in Beijing and the surrounding region. These acquisitions did not significantly impact operating income for 2006 as management transition costs substantially offset incremental unit level operating income during that time frame.

Subsequent to December 31, 2006, the company acquired four restaurants in the Philadelphia market. The acquisition was effective on January 29, 2007. Additionally, the company sold its three company-owned restaurants in Mexico City, Mexico to a franchisee in January 2007, in connection with the execution of a development agreement for 60 new Papa John's restaurants in that market over an eight-year period.

International Update

A total of 29 restaurants were opened in all international markets during the quarter, of which eight were located in our fastest-growing markets, Korea and China. As of December 31, 2006, we had a total of 101 corporate and franchised restaurants open and contractual agreements for an additional 389 Papa John's franchised restaurants to be opened over the next eight years in those two countries. We also have a ten-year, 100-unit development agreement for Northern India, of which four units are currently open. In addition, we recently signed a development agreement for 75 restaurants to be opened in South and West India over the next six years. In December 2006 and January 2007, we signed two development agreements in Mexico for a total of 70 units to be opened over the next eight years. Our total international development pipeline as of December 31, 2006 included 847 restaurants scheduled to open over the next nine years.

In March 2006, the company sold its Perfect Pizza operations in the United Kingdom, consisting of the franchised units and related distribution operations. In accordance with U.S. generally accepted accounting principles, we have classified the Perfect Pizza operating results, including directly associated G&A expenses, as "discontinued operations" for both 2006 and 2005. The following summarizes the discontinued operations for 2006 and 2005 (in 000's):

                                  Three Months Ended    Year Ended
                                  Dec 31,   Dec 25,  Dec 31,  Dec 25,
                                    2006     2005      2006     2005
                                  ------------------ -----------------

Net sales                         $     -  $  3,201  $ 2,421  $13,632

Pre-tax income                          -       566      617    2,838

Net income                              -       357      389    1,788

Share Repurchase Activity

The company repurchased approximately 1.4 million shares of its common stock at an average price of $30.68 per share, or a total of $42.3 million, during the fourth quarter of 2006, and 3.4 million shares of its common stock at an average of $31.22 per share, or a total of $106.3 million, during the full-year 2006. A total of 127,000 and 1.0 million shares of common stock, respectively, were issued upon the exercise of stock options for the three months and full year ended December 31, 2006.

As a result, there were 32.2 million diluted weighted average shares outstanding for the fourth quarter of 2006 as compared to 34.2 million for the same period in 2005. Approximately 30.7 million actual shares of the company's common stock were outstanding as of December 31, 2006. Since the inception of the share repurchase program in 1999 through the end of 2006, the company has repurchased approximately 38.1 million shares at a total cost of $602.2 million (average price of $15.80 per share). Subsequent to year-end, through February 20, 2007, the company repurchased an additional $22.9 million of common stock (793,000 shares at an average price of $28.91 per share). As recently announced, in February 2007, the company's board of directors increased the authorization for the repurchase of common stock through December 30, 2007 by $50 million, to an aggregate of $675 million since the inception of the repurchase program in 1999.

The company's share repurchase activity increased earnings per diluted share from continuing operations by $0.03 and $0.09 for the three months and full year ended December 31, 2006, respectively.

2007 Earnings Guidance Reaffirmed

The company reaffirms its previously announced 2007 earnings per diluted share guidance in the range of $1.48 to $1.56 for the 52-week year. The comparable base earnings results for 2006 were $1.40 per diluted share, as noted on page 2. The projected earnings guidance excludes any impact from the consolidation of the results of the franchisee-owned cheese purchasing company, BIBP Commodities, Inc. (BIBP), a variable interest entity, in accordance with FIN 46.

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; increases in or sustained high cost levels of food, 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; federal and state laws governing such matters as wages, benefits, working conditions, citizenship requirements and overtime, including pending legislation to increase the federal 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 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 economic, 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 February 28, 2007 at 10:00 EST to review fourth quarter earnings and full-year 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 for participation in the question and answer session. International participants may dial 706-679-8452.

The conference call will be available for replay beginning February 28, 2007, at approximately noon through March 2, 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 4892823). International participants may dial 706-645-9291 (pass code 4892823).

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

                             Three Months Ended       Year Ended
                             ------------------- ---------------------
(In thousands, except per     Dec 31,   Dec 25,    Dec 31,    Dec 25,
 share amounts)                2006      2005       2006       2005
                             --------- --------- ----------- ---------

Revenues                     $277,923  $248,377  $1,001,557  $968,788
                             ========= ========= =========== =========

Income from continuing
 operations before
   income taxes (1)           $27,344   $21,668     $96,157   $69,632
                             ========= ========= =========== =========

Net income                    $18,999   $14,408     $63,375   $46,056
                             ========= ========= =========== =========

Diluted earnings per share      $0.59     $0.42       $1.92     $1.34
                             ========= ========= =========== =========

Diluted weighted-average
 shares outstanding            32,230    34,186      33,046    34,316
                             ========= ========= =========== =========

EBITDA (A)                    $35,191   $29,075    $125,163  $101,450
                             ========= ========= =========== =========

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


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

Domestic company-owned
 restaurants                  $10,164   $10,024     $33,176   $25,284
Domestic commissaries          10,667     6,884      34,690    25,446
Domestic franchising           13,662    13,039      51,543    49,821
International                  (2,111)   (2,312)     (8,874)   (5,006)
VIEs, primarily BIBP            1,960     3,208      18,987     4,472
All others                      1,832     1,616       5,628     4,298
Unallocated corporate
 expenses                      (8,351)  (10,578)    (37,523)  (34,172)
Elimination of intersegment
 profits                         (479)     (213)     (1,470)     (511)
                             --------- --------- ----------- ---------
Income from continuing
 operations before
   income taxes               $27,344   $21,668     $96,157   $69,632
                             ========= ========= =========== =========

The following is a reconciliation of EBITDA to net income:

EBITDA (A)                    $35,191   $29,075    $125,163  $101,450
Income tax expense             (8,345)   (7,617)    (33,171)  (25,364)
Interest expense               (1,112)     (514)     (3,480)   (4,316)
Investment income                 635         -       1,682     1,248
Depreciation and amortization  (7,370)   (6,893)    (27,208)  (28,750)
Income from discontinued
 operations, net of tax             -       357         389     1,788
                             --------- --------- ----------- ---------
Net income                    $18,999   $14,408     $63,375   $46,056
                             ========= ========= =========== =========
(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            Year Ended
                   ------------------------- -------------------------
                   December 31, December 25, December 31, December 25,
                       2006         2005         2006         2005
                   ------------------------- -------------------------
(In thousands,     (Unaudited)  (Unaudited)
 except per share
 amounts)
Revenues:
 Domestic:
  Company-owned
   restaurant sales   $127,981     $106,012     $447,938     $434,525
  Variable interest
   entities
   restaurant sales      1,402        2,132        7,859       11,713
  Franchise
   royalties            14,986       13,704       56,374       52,289
  Franchise and
   development fees        624          828        2,597        3,026
  Commissary sales     111,143      107,177      413,075      398,372
  Other sales           14,904       13,511       50,505       50,474
 International:
  Royalties and
   franchise and
   development fees      2,349        1,928        7,551        6,529
  Restaurant and
   commissary sales      4,534        3,085       15,658       11,860
                   ------------------------- -------------------------
Total revenues         277,923      248,377    1,001,557      968,788

Costs and expenses:
 Domestic Company-
  owned restaurant
  expenses:
  Cost of sales         26,474       22,379       88,311       93,255
  Salaries and
   benefits             36,902       30,816      131,946      131,654
  Advertising and
   related costs        11,881        8,989       41,279       37,942
  Occupancy costs        7,510        6,215       27,245       26,392
  Other operating
   expenses             16,667       14,290       58,824       57,117
                   ------------------------- -------------------------
 Total domestic
  Company-owned
  restaurant
  expenses              99,434       82,689      347,605      346,360

 Variable interest
  entities
  restaurant
  expenses               1,265        1,864        6,708       10,188

 Domestic
  commissary and
  other expenses:
  Cost of sales         91,293       90,884      336,659      330,495
  Salaries and
   benefits              9,056        6,845       32,363       28,583
  Other operating
   expenses             11,182       11,153       45,153       49,140
                   ------------------------- -------------------------
 Total domestic
  commissary and
  other expenses       111,531      108,882      414,175      408,218

 Income from the
  franchise cheese-
  purchasing
  program, net of
  minority interest     (1,145)      (2,855)     (15,247)      (4,662)
International
 operating expenses      4,582        3,465       15,824       11,865
General and
 administrative
 expenses               25,863       22,138      102,920       88,464
Minority interests
 and other general
 expenses                1,202        3,119        4,409        6,905
Depreciation and
 amortization            7,370        6,893       27,208       28,750
                   ------------------------- -------------------------
Total costs and
 expenses              250,102      226,195      903,602      896,088
                   ------------------------- -------------------------

Operating income
 from continuing
 operations             27,821       22,182       97,955       72,700
Net interest
 expense                  (477)        (514)      (1,798)      (3,068)
                   ------------------------- -------------------------
Income from
 continuing
 operations before
 income taxes           27,344       21,668       96,157       69,632
Income tax expense       8,345        7,617       33,171       25,364
                   ------------------------- -------------------------

Income from
 continuing
 operations             18,999       14,051       62,986       44,268
Income from
 discontinued
 operations, net of
 tax                         -          357          389        1,788
                   ------------------------- -------------------------
Net income             $18,999      $14,408      $63,375      $46,056
                   ========================= =========================

Basic earnings per
 common share:
   Income from
    continuing
    operations           $0.60        $0.42        $1.95        $1.32
   Income from
    discontinued
    operations, net
    of tax                   -         0.01         0.01         0.05
                   ------------------------- -------------------------
Basic earnings per
 common share            $0.60        $0.43        $1.96        $1.37
                   ========================= =========================

Earnings per common
 share - assuming
 dilution:
   Income from
    continuing
    operations           $0.59        $0.41        $1.91        $1.29
   Income from
    discontinued
    operations, net
    of tax                   -         0.01         0.01         0.05
                   ------------------------- -------------------------
Earnings per common
 share - assuming
 dilution                $0.59        $0.42        $1.92        $1.34
                   ========================= =========================

Basic weighted
 average shares
 outstanding            31,631       33,431       32,312       33,594
                   ========================= =========================
Diluted weighted
 average shares
 outstanding            32,230       34,186       33,046       34,316
                   ========================= =========================

Note: The statements of income for the years ended December 31, 2006
 and December 25, 2005 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
                Condensed Consolidated Balance Sheets

                                             December 31, December 25,
                                                2006         2005
                                                (Note)       (Note)
                                             ------------ ------------
(In thousands)

Assets
Current assets:
  Cash and cash equivalents                      $12,979      $22,098
  Accounts receivable                             23,326       21,300
  Inventories                                     26,729       26,030
  Prepaid expenses                                 7,779        5,631
  Other current assets                             7,368        7,825
  Deferred income taxes                            6,362        7,085
  Assets of discontinued operations held for
   sale                                                -        2,039
                                             ------------ ------------
Total current assets                              84,543       92,008

Investments                                        1,254        6,282
Net property and equipment                       197,722      178,447
Notes receivable                                  12,104        7,667
Deferred income taxes                              1,643        1,899
Goodwill                                          67,357       41,878
Other assets                                      15,016       13,772
Assets of discontinued operations held for
 sale                                                  -        8,609
                                             ------------ ------------
Total assets                                    $379,639     $350,562
                                             ============ ============


Liabilities and stockholders' equity
Current liabilities:
  Accounts payable                               $29,202      $28,937
  Income and other taxes                          15,136       16,862
  Accrued expenses                                57,233       49,634
  Current portion of debt                            525        6,100
                                             ------------ ------------
Total current liabilities                        102,096      101,533

Unearned franchise and development fees            7,562        7,256
Long-term debt, net of current portion            96,511       49,016
Other long-term liabilities                       27,302       31,478
                                             ------------ ------------
Total liabilities                                233,471      189,283

Total stockholders' equity                       146,168      161,279
                                             ------------ ------------
Total liabilities and stockholders' equity      $379,639     $350,562
                                             ============ ============


Note: The balance sheets at December 31, 2006 and December 25, 2005
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 31, 2006 December 25, 2005
                                   -----------------------------------

Operating activities
Net income                                  $63,375           $46,056
Results from discontinued
 operations (net of income taxes)              (389)           (1,788)
Adjustments to reconcile net income
 to net cash provided by operating
 activities:
     Restaurant closure, impairment
      and disposition gains                    (260)           (2,039)
     Goodwill impairment                          -             1,050
     Provision for uncollectible
      accounts and notes receivable           3,445             4,367
     Depreciation and amortization           27,208            28,750
     Deferred income taxes                    3,191             4,385
     Stock-based compensation
      expense                                 4,517             2,358
     Excess tax benefit related to
      exercise of non-qualified
      stock options                          (6,533)                -
     Other                                    5,158             6,266
     Changes in operating assets
      and liabilities, net of
      acquisitions:
        Accounts receivable                  (6,020)             (231)
        Inventories                            (583)           (3,811)
        Prepaid expenses                     (2,148)            3,124
        Other current assets                   (630)             (409)
        Other assets and
         liabilities                         (7,211)           (2,971)
        Accounts payable                     (2,168)           (5,860)
        Income and other taxes               (1,726)             (408)
        Accrued expenses                      5,655             4,230
        Unearned franchise and
         development fees                       306              (952)
                                   ----------------- -----------------
Net cash provided by operating
 activities from continuing
 operations                                  85,187            82,117
Operating cash flows from
 discontinued operations                        414             2,168
                                   ----------------- -----------------
Net cash provided by operating
 activities                                  85,601            84,285

Investing activities
Purchase of property and equipment          (39,352)          (17,546)
Proceeds from sale of property and
 equipment                                      286                61
Purchase of investments                      (2,014)           (8,565)
Proceeds from sale or maturity of
 investments                                  6,983            10,880
Loans issued                                 (6,181)           (5,875)
Loan repayments                               9,339             7,434
Acquisitions                                (31,943)           (4,475)
Proceeds from divestitures of
 restaurants                                  1,300            11,000
                                   ----------------- -----------------
Net cash from continuing operations
 used in investing activities               (61,582)           (7,086)
Proceeds from divestiture of
 discontinued operations                      8,020                 -
                                   ----------------- -----------------
Net cash used in investing
 activities                                 (53,562)           (7,086)

Financing activities
Net proceeds (repayments) from line
 of credit facility                          47,500           (29,500)
Net repayments from short-term debt
 - variable interest entities                (5,575)           (7,975)
Proceeds from issuance of common
 stock                                            -             1,001
Excess tax benefit related to
 exercise of non-qualified stock
 options                                      6,533                 -
Proceeds from exercise of stock
 options                                     15,214            42,095
Acquisition of Company common stock        (106,292)          (75,325)
Other                                         1,293               300
                                   ----------------- -----------------
Net cash used in financing
 activities                                 (41,327)          (69,404)

Effect of exchange rate changes on
 cash and cash equivalents                      169              (395)
                                   ----------------- -----------------
Change in cash and cash equivalents          (9,119)            7,400
Cash and cash equivalents at
 beginning of period                         22,098            14,698
                                   ----------------- -----------------

Cash and cash equivalents at end of
 period                                     $12,979           $22,098
                                   ================= =================

Note: The cash flows at December 31, 2006 and December 25, 2005 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.
Restaurant Progression
Papa John's International, Inc.

                                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
                                ======================================


                                Fourth Quarter Ended December 25, 2005
                                --------------------------------------
                                   Corporate       Franchised
                                Domestic  Int'l  Domestic Int'l Total
                                --------------------------------------
Papa John's restaurants
Beginning of period                  571      1    2,017   305  2,894
Opened                                 3      1       24    30     58
Closed                                 -      -      (16)  (10)   (26)
Acquired                              18      -       90     -    108
Sold                                 (90)     -      (18)    -   (108)
                                --------------------------------------
End of Period                        502      2    2,097   325  2,926
                                ======================================


                                --------------------------------------
                                   Corporate       Franchised
                                Domestic  Int'l  Domestic Int'l Total
                                --------------------------------------
Perfect Pizza restaurants
Beginning of period                    -      -        -   113    113
Opened                                 -      -        -     2      2
Closed                                 -      -        -    (3)    (3)
                                --------------------------------------
End of Period                          -      -        -   112    112
                                ======================================


Note: The PJUK Perfect Pizza operations were sold in March 2006.
Restaurant Progression
Papa John's International, Inc.

                                      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                           -     -        -     -      -
                                  ====================================


                                      Year Ended December 25, 2005
                                  ------------------------------------
                                    Corporate      Franchised
                                  Domestic Int'l Domestic Int'l Total
                                  ------------------------------------
Papa John's restaurants
Beginning of period                   568     1    1,997   263  2,829
Opened                                  7     1      101    89    198
Converted                               -     -        -     1      1
Closed                                 (1)    -      (73)  (28)  (102)
Acquired                               20     -       92     -    112
Sold                                  (92)    -      (20)    -   (112)
                                  ------------------------------------
End of Period                         502     2    2,097   325  2,926
                                  ====================================


                                  ------------------------------------
                                    Corporate      Franchised
                                  Domestic Int'l Domestic Int'l Total
                                  ------------------------------------
Perfect Pizza restaurants
Beginning of period                     -     -        -   118    118
Opened                                  -     -        -     6      6
Converted                               -     -        -    (1)    (1)
Closed                                  -     -        -   (11)   (11)
                                  ------------------------------------
End of Period                           -     -        -   112    112
                                  ====================================

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

SOURCE: Papa John's International, Inc.