Papa John's Announces May Comparable Sales Results
Total system-wide international sales for the four weeks ended May 22, 2005 increased 15.8%, on a constant U.S. dollar basis, over the comparable period last year.
The company also announced that, beginning May 23rd (the first day of Period 6), a $1.00 delivery fee was implemented at approximately 460 company-owned restaurants to help offset increases in the cost of fuel, insurance, labor and food. The company noted that delivery fees have become increasingly prevalent among its larger pizza competitors, and that a delivery fee was already in place at approximately 75 company-owned and 1,200+ franchise Papa John's restaurants before this implementation. A portion of the delivery fee is being used to fund increased delivery driver reimbursements, in markets where necessary, in response to higher fuel and other costs.
The net impact of the delivery fee implementation on comparable sales and operating income will depend upon various factors, including local market pricing and promotional decisions, potential changes in delivery/carryout mix, decisions by the company to reinvest in marketing initiatives and other factors. Accordingly, the company is not projecting at this time the expected impact on comparable sales or operating income resulting from the delivery fee implementation.
At May 22, 2005, there were 2,859 Papa John's restaurants (571 company-owned and 2,288 franchised) operating in 49 states and 18 countries. Papa John's also franchises 115 Perfect Pizza restaurants in the United Kingdom. For more information about the company, visit Papa John's at http://www.papajohns.com.
CONTACT: Papa John's International, Inc.
David Flanery, 502-261-4753
SOURCE: Papa John's International, Inc.