Papa John’s Announces Significant Development Deal to Expand in Philadelphia Area

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Largest Domestic Traditional Store Development Agreement in 20 Years Marks Renewed Focus on Brand’s Franchise Growth Opportunity

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

Papa John’s International, Inc. (NASDAQ: PZZA) today announced the signing of its largest traditional store development agreement in North America in over 20 years, accelerating growth of the Papa John’s brand in the Philadelphia area.

Under the agreement, HB Restaurant Group, which currently owns 43 restaurants in the Mid-Atlantic area and has been a Papa John’s franchisee since April 2019, is to open 49 new stores in Philadelphia and southern New Jersey between 2021 and 2028.

“Papa John’s has long offered franchise investors one of the fastest paybacks in our industry. Recent record sales have driven further gains in store profitability. Combined with our resilient e-commerce and delivery model, a transforming brand and significant whitespace, Papa John’s today offers franchise investors a truly compelling opportunity,” said Papa John’s Chief Development Officer Amanda Clark. “We’re excited to grow our partnership with HB Restaurant Group, already an important member of the Papa John’s family, as we accelerate our development activities at this unique moment for the brand.”

Stuart Hunt, President, HB Restaurant Group, added, “We joined the Papa John’s system a year ago after seeing a tremendous opportunity to invest in and grow with a great brand. We are very excited to extend our growth strategy by developing new stores in a great market like Philadelphia and southern New Jersey. Papa John’s is built on supporting our neighbors where we are located, and we embrace these values. We look forward to becoming an integral part of our communities as we grow.”

Forward-Looking Statements

Certain matters discussed in this press release and other company communications that are not statements of historical fact constitute forward-looking statements within the meaning of the federal securities laws. Generally, the use of words such as “expect,” “intend,” “estimate,” “believe,” “anticipate,” “will,” “forecast,” “plan,” “project,” or similar words identify forward-looking statements that we intend to be included within the safe harbor protections provided by the federal securities laws. Such forward-looking statements include or may relate to the preliminary estimated same store sales growth and related trends, projections or guidance concerning business performance, revenue, earnings, cash flow, earnings per share, the financial impact of the temporary business opportunities, disruptions and temporary changes in demand we are experiencing related to the current outbreak of the novel coronavirus disease (COVID-19) including the projections for sales trends and comparable sales, our cash on hand and access to our credit facilities, commodity costs, currency fluctuations, profit margins, unit growth, unit level performance, capital expenditures, restaurant and franchise development, the duration of changes in consumer behavior caused by the pandemic, the duration and number of temporary store closures, royalty relief, the effectiveness of our strategic turnaround efforts and other business initiatives, marketing efforts, liquidity, compliance with debt covenants, stockholder and other stakeholder engagement, strategic decisions and actions, dividends, effective tax rates, regulatory changes and impacts, adoption of new accounting standards, and other financial and operational measures. Such statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond our control. Our forward-looking statements are based on our assumptions which are based on currently available information, including assumptions about our ability to manage difficulties associated with or related to the COVID-19 pandemic, including risks related to: the impact of governmental restrictions on freedom of movement and business operations including quarantines, social distancing requirements and mandatory business closures; the virus’s impact on the availability of our workforce; the potential disruption of our supply chain; changes in consumer demand or behavior; the overall contraction in global economic activity, including rising unemployment; our liquidity position; our ability to navigate changing governmental programs and regulations relating to the pandemic; and the increased risk of phishing and other cyber-attacks. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements. Other risks, uncertainties and assumptions that are involved in our forward-looking statements are discussed in detail in “Part I. Item 1A. – Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 29, 2019, and in “Part II. Item 1A. – Risk Factors” in our Quarterly Report on Form 10-Q for the first quarter ended March 29, 2020. We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise, except as required by law.

For more information about the company, please visit www.papajohns.com.

Investor Contact:
Steve Coke
Interim Principal Financial and Accounting Officer
Steve_Coke@papajohns.com
502-261-7272

Media Contact:
Madeline Chadwick
Senior Vice President, Communications and Corporate Affairs
Madeline_Chadwick@papajohns.com
502-261-4189

Source: Papa John’s International, Inc.

Released September 10, 2020