Papa Johns Announces Second Quarter 2025 Financial Results

North America Comparable Sales Increased 1%; International Comparable Sales Increased 4%
Diluted EPS of $0.28; Adjusted Diluted EPS of $0.41(a)
Updates Fiscal 2025 Outlook to Raise International Comparable Sales Range

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Papa John’s International, Inc. (Nasdaq: PZZA) (“Papa Johns®”) (the “Company”) today announced financial results for the second quarter ended June 29, 2025.

Highlights

  • North America comparable sales increased 1% from a year ago as Domestic Company-owned restaurants were flat and North America franchised restaurants were up 1%; International comparable sales increased 4% compared with the prior year second quarter.
  • Opened 45 new restaurants system-wide, comprised of 19 restaurant openings in North America and 26 restaurant openings in International markets.
  • Global system-wide restaurant sales were $1.26 billion, a 4%(b) increase compared with the prior year second quarter, driven by higher comparable sales and trailing twelve-month net restaurant growth.
  • Total revenues of $529 million increased 4% compared with the prior year second quarter, primarily due to higher Commissary revenues.
  • Net income was $10 million compared with $13 million in the prior year second quarter and adjusted EBITDA(a) was $53 million compared with $59 million in the prior year quarter.
  • Diluted earnings per common share was $0.28 compared with $0.37 in the prior year second quarter; adjusted diluted earnings per common share(a) was $0.41 compared with $0.61 last year.

CEO Commentary

“Papa Johns second quarter results exceeded our expectations and are evidence that our strategy is working. We returned to comparable sales growth in North America and achieved strong sales growth internationally, driven by transaction gains as we win more customer visits with a focus on our core pizza business,” said Todd Penegor, President and CEO.

“Our progress in the second quarter reinforces my confidence that we are on the right track to deliver significant, sustainable profitable growth and increased value for all Papa Johns stakeholders,” Penegor added.

(a) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation to the most comparable U.S. GAAP measures.

(b) Growth rate excludes the impact of foreign currency.

Financial Highlights

 

 

 

Three Months Ended

 

Six Months Ended

(In thousands, except per share amounts)

 

June 29,
2025

 

June 30,
2024

 

Increase (Decrease)

 

June 29,
2025

 

June 30,
2024

 

Increase (Decrease)

Total revenues

 

$

529,166

 

$

507,894

 

$

21,272

 

 

$

1,047,475

 

$

1,021,810

 

$

25,665

 

Net income

 

$

9,671

 

$

12,536

 

$

(2,865

)

 

$

19,014

 

$

27,450

 

$

(8,436

)

Adjusted EBITDA(a)

 

$

52,615

 

$

58,920

 

$

(6,305

)

 

$

102,239

 

$

119,485

 

$

(17,246

)

Diluted earnings per common share

 

$

0.28

 

$

0.37

 

$

(0.09

)

 

$

0.56

 

$

0.82

 

$

(0.26

)

Adjusted diluted earnings per common share(a)

 

$

0.41

 

$

0.61

 

$

(0.20

)

 

$

0.77

 

$

1.28

 

$

(0.51

)

Results for the three and six months of 2025 are not directly comparable with the three and six months of 2024, as year-over-year comparisons are impacted by the UK restaurant closures and refranchising transactions that occurred in the second and third quarters of 2024.

Second Quarter 2025 Results

Revenue: Total revenues of $529.2 million increased $21.3 million, or 4.2%, in the second quarter of 2025 compared with the prior year period. The higher revenues were largely attributable to a $20.3 million increase in Commissary revenues, reflecting both higher volumes and pricing during the quarter. Also contributing to the higher revenues, but to a lesser extent, was a $2.7 million increase in Other revenues, primarily reflecting higher digital fees, a $2.2 million increase in Advertising funds revenues, primarily driven by higher advertising contribution rates in certain International markets, and a $1.8 million increase in Franchise royalties and fees, driven by higher comparable sales and global restaurant growth on a trailing twelve-month basis.

The above revenue increases were partially offset by a $5.7 million decrease in Company-owned restaurant revenues, largely attributable to a decrease of $8.2 million in revenues from our International Company-owned restaurants, primarily related to lower revenues from our Company-owned restaurants in the UK, as 105 formerly Company-owned restaurants were refranchised or closed prior to the second quarter of 2025. The decline was partially offset by a $2.6 million increase at our Domestic Company-owned restaurants primarily due to comparable sales growth as a result of higher average ticket, slightly offset by the refranchising of 15 restaurants in the prior year.

System-wide sales: For the second quarter of 2025, Global system-wide restaurant sales were $1.26 billion, up 4%(b) compared with the prior year second quarter, driven by higher North America and International comparable sales and 2% global net restaurant growth on a trailing twelve-month basis. North America system-wide sales increased 3%(b) to $928 million and International system-wide sales increased 7%(b) to $328 million in the second quarter of 2025, compared with the prior year period.

Net income: Second quarter Net income was $9.7 million, a $2.9 million decrease compared with the prior year second quarter, as higher revenues were more than offset by higher G&A expenses related to incremental investments in marketing and our loyalty program as well as a $3.7 million increase from higher incentive compensation under the Company’s Management Incentive Plan as well as higher cost of sales driven by higher food and labor costs at the Company-owned restaurants. In addition, Net income reflects slightly lower interest expense driven by lower average interest rates during the quarter and slightly lower tax expense, due to lower pre-tax income, compared with the second quarter of 2024.

Adjusted EBITDA: Adjusted EBITDA(a) was $52.6 million, a $6.3 million decrease from the prior year second quarter. The decrease was primarily attributable to higher revenues more than offset by higher G&A expenses largely related to incremental investments in marketing and the Company’s loyalty program along with higher incentive compensation under the Company’s Management Incentive Plan, as well as higher operating costs at the Company-owned restaurants.

The variance between Net income and adjusted EBITDA was primarily due to non-GAAP adjustments of $4 million of stock-based compensation, $2 million of International restructuring costs in the UK, and approximately $3 million associated with losses on disposal of equipment in connection with the termination of a COVID-era equipment program, compared with the prior year second quarter.

Earnings per share: Diluted earnings per common share was $0.28 for the second quarter of 2025 compared with $0.37 in the second quarter of 2024. Adjusted diluted earnings per common share(a) was $0.41 for the second quarter of 2025 compared with $0.61 in the second quarter of 2024. These changes were driven by the same factors impacting Net income and adjusted EBITDA(a) as discussed above.

Refer to 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 SEC for additional information concerning our operating results for the three and six months ended June 29, 2025.

(a) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation to the most comparable U.S. GAAP measures.

(b) Growth rate excludes the impact of foreign currency.

2025 Outlook

The Company is reiterating its 2025 annual guidance for the following metrics and raising the range for International comparable sales:

  • System-wide sales: Up 2% to 5%
  • North America comparable sales: Flat to up 2%
  • International comparable sales: Up 2% to 4% (previously flat to up 2%)
  • Restaurant development:
    • North America: 85 to 115 gross openings
    • International: 180 to 200 gross openings
  • Adjusted EBITDA (as defined below): $200 million to $220 million
  • Depreciation & amortization: $70 million to $75 million
  • Interest expense: $40 million to $45 million
  • Effective tax rate: 28% to 32%
  • Capital expenditures: $75 million to $85 million

Adjusted EBITDA represents Net income before Net interest expense, Income tax expense, Depreciation and amortization, Stock-based compensation expense, and other adjustments that vary from period to period in accordance with the Company’s Non-GAAP policy. The Company believes adjusted EBITDA is a meaningful measure as it is widely used by analysts and investors to value the Company and its restaurants on a consistent basis. Adjusted EBITDA is not a term defined by GAAP, and is not intended to be a substitute for operating income, net income, or cash flows from operating activities, as defined under generally accepted accounting principles. As a result, our measure of adjusted EBITDA might not be comparable to similarly titled measures used by other companies.

This release includes forward-looking projections for certain non-GAAP financial measures, including adjusted EBITDA. The Company excludes certain expenses and benefits from adjusted EBITDA that, due to the uncertainty and variability of the nature and amount of those expenses and benefits, the Company is unable to, without unreasonable effort or expense, provide a reconciliation to Net income of those projected measures.

Global Restaurant Sales Information

Global restaurant and comparable sales information for the three and six months ended June 29, 2025, compared with the three and six months ended June 30, 2024 are as follows (See “Supplemental Information and Financial Statements” below for related definitions):

 

Three Months Ended

 

Six Months Ended

Amounts below exclude the impact of foreign currency

June 29,
2025

 

June 30,
2024

 

June 29,
2025

 

June 30,
2024

Comparable sales growth (decline):

 

 

 

 

 

 

 

Domestic Company-owned restaurants

0.3

%

 

(4.2

)%

 

(2.1

)%

 

(3.6

)%

North America franchised restaurants

1.0

%

 

(3.4

)%

 

(0.7

)%

 

(2.4

)%

North America restaurants

0.9

%

 

(3.6

)%

 

(1.0

)%

 

(2.7

)%

International restaurants

3.7

%

 

(0.1

)%

 

3.5

%

 

(1.4

)%

Total comparable sales growth (decline)

1.6

%

 

(2.7

)%

 

0.1

%

 

(2.4

)%

System-wide restaurant sales growth (decline):

 

 

 

 

 

 

 

Domestic Company-owned restaurants

1.5

%

 

(1.5

)%

 

(0.8

)%

 

(1.7

)%

North America franchised restaurants

2.7

%

 

(1.9

)%

 

1.1

%

 

(1.8

)%

North America restaurants

2.5

%

 

(1.9

)%

 

0.7

%

 

(1.8

)%

International restaurants (a)

6.6

%

 

5.1

%

 

6.1

%

 

3.3

%

Total global system-wide restaurant sales growth (decline) (a)

3.5

%

 

(0.2

)%

 

2.1

%

 

(0.5

)%

Global Restaurants

As of June 29, 2025, there were 5,989 Papa Johns restaurants operating in 50 countries and territories, as follows:

Second Quarter

Domestic
Company-owned

 

Franchised
North
America

 

Total
North
America

 

International
Company-owned

 

International
Franchised

 

Total
International

 

System-wide

Beginning - March 30, 2025

539

 

 

2,977

 

 

3,516

 

 

13

 

 

2,490

 

 

2,503

 

 

6,019

 

Opened

2

 

 

17

 

 

19

 

 

 

 

26

 

 

26

 

 

45

 

Closed

 

(18

)

 

(18

)

 

 

 

(57

)

 

(57

)

 

(75

)

Ending - June 29, 2025

541

 

 

2,976

 

 

3,517

 

 

13

 

 

2,459

 

 

2,472

 

 

5,989

 

Net restaurant growth/(decline)

2

 

 

(1

)

 

1

 

 

 

 

(31

)

 

(31

)

 

(30

)

Trailing four quarters net restaurant growth

4

 

 

66

 

 

70

 

 

(20

)

 

56

 

 

36

 

 

106

 

(a) System-wide sales for the three and six months ended June 30, 2024 include $6.7 million and $7.1 million, respectively of International sales related to the first and second quarters of 2024 that were erroneously omitted in prior periods.

Free Cash Flow

Free cash flow, a non-GAAP financial measure which the Company defines as net cash provided by operating activities (from the Condensed Consolidated Statements of Cash Flows) less the purchases of property and equipment, excluding purchases of property and equipment related to damages from natural disasters, was $36.5 million for the six months ended June 29, 2025, compared with $12.8 million in the prior year period. The year-over-year change primarily reflects the timing of cash payments for the National Marketing Fund and improved working capital.

 

Six Months Ended

(in thousands)

June 29,
2025

 

June 30,
2024

Net cash provided by operating activities

$

66,843

 

 

$

41,957

 

Purchases of property and equipment

 

(30,305

)

 

 

(29,155

)

Free cash flow

$

36,538

 

 

$

12,802

 

We view free cash flow as an important financial measure because it is one factor that management uses in determining the amount of cash available for discretionary investment. Free cash flow is not a term defined by GAAP, and as a result, our measure of free cash flow might not be comparable to similarly titled measures used by other companies. Free cash flow should not be construed as a substitute for or a better indicator of the Company’s performance than the Company’s GAAP measures.

Cash Dividend

The Company paid cash dividends of $15.3 million ($0.46 per common share) in the second quarter of 2025. On August 1, 2025, our Board of Directors declared a third quarter dividend of $0.46 per common share. The dividend will be paid on August 29, 2025 to stockholders of record as of the close of business on August 18, 2025.

Conference Call

Papa Johns will host a call with analysts today, August 7, 2025, at 8:00 a.m. Eastern Time. To access the conference call or webcast, please register online at: ir.papajohns.com/events-presentations. A replay of the webcast will be available two hours after the call and archived on the same web page.

About Papa Johns

Papa John’s International, Inc. (Nasdaq: PZZA) opened its doors in 1984 with one goal in mind: BETTER INGREDIENTS. BETTER PIZZA.® Papa Johns believes that using high-quality ingredients leads to superior quality pizzas. Its original dough is made of only six ingredients and is fresh, never frozen. Papa Johns tops its pizzas with real cheese made from mozzarella, pizza sauce made with vine-ripened tomatoes that go from vine to can in the same day and meat free of fillers. It was the first national pizza delivery chain to announce the removal of artificial flavors and synthetic colors from its entire food menu. Papa Johns is co-headquartered in Atlanta, Ga. and Louisville, Ky. and is the world’s third-largest pizza delivery company with approximately 6,000 restaurants in approximately 50 countries and territories. For more information about the Company or to order pizza online, visit www.papajohns.com or download the Papa Johns mobile app for iOS or Android.

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,” “outlook”, “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 projections or guidance concerning business performance, revenue, earnings, cash flow, earnings per share, share repurchases, depreciation and amortization, interest expenses, tax rates, system-wide sales, adjusted EBITDA, the current economic environment, industry trends, consumer behavior and preferences, commodity and labor costs, currency fluctuations, profit margins, supply chain operating margin, net unit growth, unit level performance, capital expenditures, restaurant and franchise development, restaurant acquisitions, restaurant closures, labor shortages, labor cost increases, changes in management, inflation, royalty relief, franchisee support and incentives, the effectiveness of our menu innovations and other business initiatives, investments in product, digital and technology innovation and investments, marketing efforts and investments, liquidity, compliance with debt covenants, impairments, strategic decisions and actions, changes to our national marketing fund, changes to our commissary model, dividends, effective tax rates, regulatory changes and impacts, impacts of tariffs, insurance recoveries for damages related to natural disasters, repositioning of the UK market, International restructuring plans, including timing of completion, expected benefits and costs, International consumer demand, 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. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements.

Our forward-looking statements are based on our assumptions which are based on currently available information. Actual outcomes and results may differ materially from those matters expressed or implied in our forward-looking statements as a result of various factors, including but not limited to risks related to: deteriorating economic conditions in U.S. and international markets; labor shortages at Company and/or franchised restaurants and our quality control centers; increases in labor costs, changes in commodity costs, supply chain incentive-based rebates, or sustained higher other operating costs, including as a result of supply chain disruption, inflation, increased tariffs, trade barriers, immigration policies, or climate change; the potential for delayed new restaurant openings, both domestically and internationally, or lower net unit development due to changing circumstances outside of our control; the increased risk of phishing, ransomware and other cyber-attacks; risks and disruptions to the U.S. and global economy and our business related to geopolitical conflicts including conflicts in Ukraine and the Middle East and risks related to a possible economic recession or downturn that could reduce consumer spending or demand.

These and 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, 2024. 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.

Supplemental Information and Financial Statements

Definitions

“Comparable sales” represents sales for the same base of restaurants for the same fiscal periods. “Comparable sales growth (decline)” represents the change in year-over-year comparable sales. “Global system-wide restaurant sales” represents total restaurant sales for all Company-owned and franchised restaurants open during the comparable periods, and “Global system-wide restaurant sales growth (decline)” represents the change in global system-wide restaurant sales year-over-year. Comparable sales, Comparable sales growth (decline), Global system-wide restaurant sales and Global system-wide sales growth (decline) exclude franchisees for which we suspended corporate support.

We believe Domestic Company-owned, North America franchised, and International Comparable sales growth (decline) and Global system-wide restaurant sales information is useful in analyzing our results since our franchisees pay royalties and marketing fund contributions that are based on a percentage of franchise sales. Comparable sales and Global system-wide restaurant sales results for restaurants operating outside of the United States are reported on a constant dollar basis, which excludes the impact of foreign currency translation. Franchise sales also generate commissary revenue in the United States and in certain international markets. Comparable sales growth (decline) and Global system-wide restaurant sales information is also useful for comparison to industry trends and evaluating the strength of our brand. Management believes the presentation of Global system-wide restaurant sales growth, excluding the impact of foreign currency, provides investors with useful information regarding underlying sales trends and the impact of new unit growth without being impacted by swings in the external factor of foreign currency. Franchise restaurant sales are not included in the Company’s revenues.

Financial Statement Updates

The Company has implemented several financial statement changes to evolve and modernize our financial statements and footnotes to increase transparency and better reflect management’s key performance metrics. Financial results for the three months ended June 30, 2024 have been updated to conform with the current presentation to classify revenues and expenses based on the nature of the underlying activities without regard to operating segment. Please refer to the Company’s Form 10-K for the year ended December 29, 2024 and Company’s Form 10-Q for the second quarter ended June 29, 2025 for further information on segments.

Additionally, during the year ended December 29, 2024, the Company updated its internal cost allocation methodology to better reflect current levels of time and effort spent managing our different segments. These updates resulted in a higher allocation of previously unallocated corporate expenses to primarily the North America franchising and International segments. This update in methodology does not impact total reported expenses, and was implemented prospectively beginning with the year ended December 29, 2024. The comparative information has been recast.

Non-GAAP Financial Measures

In addition to the results provided in accordance with U.S. GAAP, we provide certain non-GAAP measures, which present results on an adjusted basis. These are supplemental measures of performance that are not required by or presented in accordance with U.S. GAAP and include the following: adjusted EBITDA, adjusted net income attributable to common shareholders and adjusted diluted earnings per common share. We believe that our non-GAAP financial measures enable investors to assess the operating performance of our business relative to our performance based on U.S. GAAP results and relative to other companies. We believe that the disclosure of these non-GAAP measures is useful to investors as they reflect metrics that our management team and Board utilize to evaluate our operating performance, allocate resources and administer employee incentive plans. The most directly comparable U.S. GAAP measures to adjusted EBITDA, adjusted net income attributable to common shareholders and adjusted diluted earnings per common share are net income, net income attributable to common shareholders and diluted earnings per common share, respectively. These non-GAAP measures should not be construed as a substitute for or a better indicator of the Company’s performance than the Company’s U.S. GAAP results. The table below reconciles our GAAP financial results to our non-GAAP financial measures.

Reconciliation of GAAP Financial Results to Non-GAAP Financial Measures

 

 

 

Three Months Ended

 

Six Months Ended

(In thousands, except per share amounts)

 

June 29,
2025

 

June 30,
2024

 

June 29,
2025

 

June 30,
2024

Net income

 

$

9,671

 

 

$

12,536

 

 

$

19,014

 

 

$

27,450

 

Income tax expense

 

 

4,235

 

 

 

4,794

 

 

 

8,778

 

 

 

12,535

 

Net interest expense

 

 

10,584

 

 

 

10,896

 

 

 

20,663

 

 

 

21,959

 

Depreciation and amortization

 

 

18,819

 

 

 

17,594

 

 

 

37,162

 

 

 

35,268

 

Stock-based compensation expense

 

 

3,824

 

 

 

2,915

 

 

 

7,493

 

 

 

2,545

 

International restructuring costs (a)

 

 

2,451

 

 

 

6,185

 

 

 

4,631

 

 

 

15,728

 

Other costs (b)

 

 

3,031

 

 

 

4,000

 

 

 

4,498

 

 

 

4,000

 

Adjusted EBITDA

 

$

52,615

 

 

$

58,920

 

 

$

102,239

 

 

$

119,485

 

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders

 

$

9,267

 

 

$

12,243

 

 

$

18,295

 

 

$

26,879

 

International restructuring costs (a)

 

 

2,475

 

 

 

6,129

 

 

 

4,610

 

 

 

15,652

 

Other costs (b)

 

 

3,031

 

 

 

4,000

 

 

 

4,498

 

 

 

4,000

 

Tax effect of adjustments (c)

 

 

(1,250

)

 

 

(2,289

)

 

 

(2,068

)

 

 

(4,441

)

Adjusted net income attributable to common shareholders

 

$

13,523

 

 

$

20,083

 

 

$

25,335

 

 

$

42,090

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

$

0.28

 

 

$

0.37

 

 

$

0.56

 

 

$

0.82

 

International restructuring costs (a)

 

 

0.07

 

 

 

0.19

 

 

 

0.14

 

 

 

0.48

 

Other costs (b)

 

 

0.10

 

 

 

0.12

 

 

 

0.13

 

 

 

0.12

 

Tax effect of adjustments (c)

 

 

(0.04

)

 

 

(0.07

)

 

 

(0.06

)

 

 

(0.14

)

Adjusted diluted earnings per common share

 

$

0.41

 

 

$

0.61

 

 

$

0.77

 

 

$

1.28

 

Footnotes to Non-GAAP Financial Measures

(a)

Represents costs associated with the Company’s international transformation initiatives. For the three and six months ended June 29, 2025, these costs are comprised primarily of losses on franchisee notes receivable, professional services and other related costs, and lease termination costs.

(b)

For the three and six months ended June 29, 2025, other costs is comprised of the following:

 

i.

Losses on disposal of equipment incurred in connection with the termination of a COVID-era program that pre-purchased store equipment due to supply chain challenges;

 

ii.

Costs associated with project-based strategic initiatives that are not related to our ongoing operations, and;

 

iii.

Costs incurred, net of anticipated insurance recoveries, arising from tornadoes that struck the Texas Quality Control Center (“QC Center”) as well as the restaurant support center and QC Center in Louisville, Kentucky.

 

For the three and six months ended June 30, 2024, represents a non-cash impairment charge related to fixed and intangible assets related to certain Domestic restaurants.

(c)

The tax effect on non-GAAP adjustments was calculated by applying the marginal tax rates of 22.7% for the three and six months ended June 29, 2025 and 22.6% for the three and six months ended June 30, 2024.

 

Papa John’s International, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

 

(In thousands, except per share amounts)

 

June 29,
2025

 

December 29,
2024

 

 

(Unaudited)

 

 

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

33,299

 

 

$

37,955

 

Accounts receivable, net

 

 

103,903

 

 

 

101,677

 

Notes receivable, current portion

 

 

4,760

 

 

 

4,928

 

Income tax receivable

 

 

2,653

 

 

 

2,214

 

Inventories

 

 

37,474

 

 

 

35,245

 

Prepaid expenses and other current assets

 

 

56,698

 

 

 

48,586

 

Total current assets

 

 

238,787

 

 

 

230,605

 

Property and equipment, net

 

 

269,224

 

 

 

273,272

 

Finance lease right-of-use assets, net

 

 

39,393

 

 

 

28,761

 

Operating lease right-of-use assets

 

 

179,399

 

 

 

184,425

 

Notes receivable, less current portion, net

 

 

3,994

 

 

 

8,867

 

Goodwill

 

 

76,881

 

 

 

75,460

 

Other assets

 

 

82,764

 

 

 

87,562

 

Total assets

 

$

890,442

 

 

$

888,952

 

 

 

 

 

 

Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

74,563

 

 

$

61,842

 

Income and other taxes payable

 

 

5,903

 

 

 

11,987

 

Accrued expenses and other current liabilities

 

 

161,785

 

 

 

155,579

 

Current deferred revenue

 

 

13,372

 

 

 

15,519

 

Current finance lease liabilities

 

 

10,124

 

 

 

7,280

 

Current operating lease liabilities

 

 

26,974

 

 

 

25,756

 

Total current liabilities

 

 

292,721

 

 

 

277,963

 

Deferred revenue

 

 

19,667

 

 

 

21,287

 

Long-term finance lease liabilities

 

 

31,095

 

 

 

22,885

 

Long-term operating lease liabilities

 

 

172,183

 

 

 

173,557

 

Long-term debt, less current portion, net

 

 

726,281

 

 

 

741,650

 

Other long-term liabilities

 

 

64,357

 

 

 

64,923

 

Total liabilities

 

 

1,306,304

 

 

 

1,302,265

 

 

 

 

 

 

Redeemable noncontrolling interests

 

 

892

 

 

 

903

 

 

 

 

 

 

Stockholders’ deficit:

 

 

 

 

Common stock ($0.01 par value per share; issued 49,292 at June 29, 2025 and 49,283 at December 29, 2024)

 

 

493

 

 

 

493

 

Additional paid-in capital

 

 

452,787

 

 

 

452,449

 

Accumulated other comprehensive loss

 

 

(5,967

)

 

 

(8,456

)

Retained earnings

 

 

229,868

 

 

 

241,717

 

Treasury stock (16,539 shares at June 29, 2025 and 16,637 shares at December 29, 2024, at cost)

 

 

(1,109,178

)

 

 

(1,115,729

)

Total stockholders’ deficit

 

 

(431,997

)

 

 

(429,526

)

Noncontrolling interests in subsidiaries

 

 

15,243

 

 

 

15,310

 

Total Stockholders’ deficit

 

 

(416,754

)

 

 

(414,216

)

Total Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit

 

$

890,442

 

 

$

888,952

 

 

Papa John’s International, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

 

(Unaudited)

 

Three Months Ended

 

Six Months Ended

(In thousands, except per share amounts)

 

June 29,
2025

 

June 30,
2024

 

June 29,
2025

 

June 30,
2024

Revenues:

 

 

 

 

 

 

 

 

Company-owned restaurant sales

 

$

178,989

 

 

$

184,640

 

 

$

352,870

 

 

$

375,891

 

Franchise royalties and fees

 

 

48,302

 

 

 

46,552

 

 

 

96,358

 

 

 

93,705

 

Commissary revenues

 

 

234,576

 

 

 

214,322

 

 

 

463,517

 

 

 

431,834

 

Other revenues

 

 

23,136

 

 

 

20,410

 

 

 

46,893

 

 

 

41,345

 

Advertising funds revenue

 

 

44,163

 

 

 

41,970

 

 

 

87,837

 

 

 

79,035

 

Total revenues

 

 

529,166

 

 

 

507,894

 

 

 

1,047,475

 

 

 

1,021,810

 

Costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales

 

 

371,716

 

 

 

363,038

 

 

 

738,212

 

 

 

730,704

 

General and administrative expenses

 

 

70,118

 

 

 

57,046

 

 

 

135,285

 

 

 

114,923

 

Depreciation and amortization

 

 

18,819

 

 

 

17,594

 

 

 

37,162

 

 

 

35,268

 

Advertising funds expense

 

 

44,023

 

 

 

41,990

 

 

 

88,361

 

 

 

78,971

 

Total costs and expenses

 

 

504,676

 

 

 

479,668

 

 

 

999,020

 

 

 

959,866

 

Operating income

 

 

24,490

 

 

 

28,226

 

 

 

48,455

 

 

 

61,944

 

Net interest expense

 

 

(10,584

)

 

 

(10,896

)

 

 

(20,663

)

 

 

(21,959

)

Income before income taxes

 

 

13,906

 

 

 

17,330

 

 

 

27,792

 

 

 

39,985

 

Income tax expense (a)

 

 

(4,235

)

 

 

(4,794

)

 

 

(8,778

)

 

 

(12,535

)

Net income

 

 

9,671

 

 

 

12,536

 

 

 

19,014

 

 

 

27,450

 

Net income attributable to noncontrolling interests

 

 

(140

)

 

 

(293

)

 

 

(261

)

 

 

(571

)

Net income attributable to the Company

 

$

9,531

 

 

$

12,243

 

 

$

18,753

 

 

$

26,879

 

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders

 

$

9,267

 

 

$

12,243

 

 

$

18,295

 

 

$

26,879

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.28

 

 

$

0.37

 

 

$

0.56

 

 

$

0.82

 

Diluted earnings per common share

 

$

0.28

 

 

$

0.37

 

 

$

0.56

 

 

$

0.82

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

 

32,849

 

 

 

32,730

 

 

 

32,808

 

 

 

32,688

 

Diluted weighted average common shares outstanding

 

 

32,969

 

 

 

32,853

 

 

 

32,932

 

 

 

32,871

 

___________________________________

(a)

The signage of Income tax expense has been changed from the historic presentation for purposes of signage consistency with other expense items.

 

Papa John’s International, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

 

(Unaudited)

 

Six Months Ended

(In thousands)

 

June 29,
2025

 

June 30,
2024

Operating activities

 

 

 

 

Net income

 

$

19,014

 

 

$

27,450

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Provision for allowance for credit losses on accounts and notes receivable

 

 

3,284

 

 

 

2,397

 

Depreciation and amortization

 

 

37,162

 

 

 

35,268

 

Deferred income taxes

 

 

1,600

 

 

 

2,812

 

Stock-based compensation expense

 

 

7,493

 

 

 

2,545

 

Refranchising and impairment loss

 

 

8,087

 

 

 

14,713

 

Loss on disposal of property and equipment

 

 

2,576

 

 

 

965

 

Other

 

 

237

 

 

 

774

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

Accounts receivable

 

 

(5,312

)

 

 

8,488

 

Income tax receivable

 

 

(308

)

 

 

(203

)

Inventories

 

 

(1,980

)

 

 

(1,748

)

Prepaid expenses and other current assets

 

 

(3,693

)

 

 

(3,541

)

Other assets and liabilities

 

 

(3,160

)

 

 

(5,788

)

Accounts payable

 

 

12,609

 

 

 

(8,756

)

Income and other taxes payable

 

 

(6,132

)

 

 

(10,957

)

Accrued expenses and other current liabilities

 

 

(9,315

)

 

 

(12,321

)

Deferred revenue

 

 

(3,812

)

 

 

(1,839

)

Advertising fund assets and liabilities

 

 

8,493

 

 

 

(8,302

)

Net cash provided by operating activities

 

 

66,843

 

 

 

41,957

 

Investing activities

 

 

 

 

Purchases of property and equipment

 

 

(30,305

)

 

 

(29,155

)

Purchases of property and equipment related to damages from natural disasters

 

 

(1,366

)

 

 

 

Insurance proceeds related to damages from natural disasters

 

 

2,900

 

 

 

 

Notes issued

 

 

 

 

 

(153

)

Repayments of notes issued

 

 

4,534

 

 

 

1,794

 

Proceeds from dispositions and refranchising, net of cash transferred

 

 

 

 

 

1,495

 

Proceeds from investments

 

 

4,739

 

 

 

2,275

 

Other

 

 

109

 

 

 

(97

)

Net cash used in investing activities

 

 

(19,389

)

 

 

(23,841

)

Financing activities

 

 

 

 

Net (repayments of) proceeds from revolving credit facilities

 

 

(212,927

)

 

 

3,024

 

Proceeds from term loan

 

 

200,000

 

 

 

 

Debt issuance costs

 

 

(3,223

)

 

 

 

Proceeds from exercise of stock options

 

 

397

 

 

 

933

 

Dividends paid to common stockholders

 

 

(30,493

)

 

 

(30,212

)

Tax payments for equity award issuances

 

 

(1,208

)

 

 

(3,330

)

Distributions to noncontrolling interests

 

 

(339

)

 

 

(405

)

Principal payments on finance leases

 

 

(4,903

)

 

 

(4,796

)

Other

 

 

(55

)

 

 

358

 

Net cash used in financing activities

 

 

(52,751

)

 

 

(34,428

)

Effect of exchange rate changes on cash and cash equivalents

 

 

641

 

 

 

30

 

Change in cash and cash equivalents

 

 

(4,656

)

 

 

(16,282

)

Cash and cash equivalents at beginning of period

 

 

37,955

 

 

 

40,587

 

Cash and cash equivalents at end of period

 

$

33,299

 

 

$

24,305

 

Papa John’s International, Inc. and Subsidiaries
Segment Information

 

The following tables present the operating results of our segments. We have four reportable segments: Domestic Company-owned restaurants, North America franchising, North America commissaries, and International. Under ASC 280, Segment Reporting, our segment performance is evaluated based on adjusted EBITDA. See the Company’s Form 10-Q for the quarter-ended June 29, 2025 for further information on segments, including reconciliations of segment measures to consolidated measures for the quarter-ended June 29, 2025.

 

 

 

Three Months Ended June 29, 2025

(in thousands, unaudited)

 

Domestic Company-owned restaurants

 

North America franchising

 

North America commissaries

 

International

Revenues from external customers

 

$

175,797

 

$

35,359

 

$

214,846

 

$

44,184

Intersegment revenues

 

 

 

 

1,244

 

 

52,813

 

 

Segment revenue

 

$

175,797

 

$

36,603

 

$

267,659

 

$

44,184

 

 

 

 

 

 

 

 

 

Less segment expenses (a):

 

 

 

 

 

 

 

 

Cost of sales

 

$

155,985

 

$

 

$

236,993

 

$

24,407

General & administrative

 

 

9,948

 

 

9,760

 

 

11,014

 

 

9,282

Advertising funds expense

 

 

 

 

 

 

 

 

4,858

Segment adjusted EBITDA

 

$

9,864

 

$

26,843

 

$

19,652

 

$

5,637

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2024

(in thousands, unaudited)

 

Domestic Company-owned restaurants

 

North America franchising

 

North America commissaries

 

International

Revenues from external customers

 

$

173,207

 

$

34,409

 

$

198,197

 

$

46,547

Intersegment revenues

 

 

 

 

1,041

 

 

50,303

 

 

Segment revenue

 

$

173,207

 

$

35,450

 

$

248,500

 

$

46,547

 

 

 

 

 

 

 

 

 

Less segment expenses (a):

 

 

 

 

 

 

 

 

Cost of sales

 

$

150,262

 

$

 

$

224,511

 

$

30,210

General & administrative

 

 

9,471

 

 

8,243

 

 

8,947

 

 

9,575

Advertising funds expense

 

 

 

 

 

 

 

 

3,049

Segment adjusted EBITDA

 

$

13,474

 

$

27,207

 

$

15,042

 

$

3,713

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 29, 2025

(in thousands, unaudited)

 

Domestic Company-owned restaurants

 

North America franchising

 

North America commissaries

 

International

Revenues from external customers

 

$

346,592

 

$

70,911

 

$

427,765

 

$

83,295

Intersegment revenues

 

 

 

 

2,503

 

 

104,271

 

 

Segment revenue

 

$

346,592

 

$

73,414

 

$

532,036

 

$

83,295

 

 

 

 

 

 

 

 

 

Less Segment Operating Expenses (a):

 

 

 

 

 

 

 

 

Cost of sales

 

$

310,998

 

$

 

$

472,726

 

$

44,191

General & administrative

 

 

20,698

 

 

19,323

 

 

20,306

 

 

18,126

Advertising funds expense

 

 

 

 

 

 

 

 

9,959

Segment adjusted EBITDA

 

$

14,896

 

$

54,091

 

$

39,004

 

$

11,019

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2024

(in thousands, unaudited)

 

Domestic Company-owned restaurants

 

North America franchising

 

North America commissaries

 

International

Revenues from external customers

 

$

349,431

 

$

70,106

 

$

401,484

 

$

93,220

Intersegment revenues

 

 

 

 

2,090

 

 

99,570

 

 

Segment revenue

 

$

349,431

 

$

72,196

 

$

501,054

 

$

93,220

 

 

 

 

 

 

 

 

 

Less segment expenses (a):

 

 

 

 

 

 

 

 

Cost of sales

 

$

301,368

 

$

 

$

450,800

 

$

61,065

General & administrative

 

 

19,650

 

 

16,482

 

 

18,037

 

 

18,314

Advertising funds expense

 

 

 

 

 

 

 

 

5,935

Segment adjusted EBITDA

 

$

28,413

 

$

55,714

 

$

32,217

 

$

7,906

___________________________________

(a)

Segment expenses excludes depreciation and amortization, stock-based compensation expense, and certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business.

 

Papa John’s International, Inc. and Subsidiaries

Supplemental Information - All Other

 

(in thousands, unaudited)

 

Three Months Ended

 

Six Months Ended

All Other (a)

 

June 29,
2025

 

June 30,
2024

 

June 29,
2025

 

June 30,
2024

Revenues from external customers

 

$

58,980

 

$

55,534

 

$

118,912

 

$

107,569

Intersegment revenues

 

 

14,781

 

 

13,778

 

 

29,180

 

 

26,950

All Other revenue

 

$

73,761

 

$

69,312

 

$

148,092

 

$

134,519

All Other costs and expenses (b)

 

 

 

 

 

 

 

 

Cost of sales

 

$

12,551

 

$

12,533

 

$

25,181

 

$

25,428

General and administrative expenses

 

 

2,513

 

 

1,921

 

 

4,940

 

 

4,071

Advertising funds expense

 

 

49,464

 

 

49,041

 

 

98,574

 

 

92,306

All Other adjusted EBITDA (c)

 

$

9,233

 

$

5,817

 

$

19,397

 

$

12,714

___________________________________

(a)

All other business units that do not meet the quantitative or qualitative thresholds for determining reporting segments, which are not operating segments, we refer to as “All Other.” These consist of operations that derive revenues from franchise contributions to marketing funds as well as information systems and related services used in restaurant operations, including our point-of-sale system, online and other technology-based ordering platforms. Our largest marketing fund is Papa Johns Marketing Fund (“PJMF”). PJMF is a consolidated nonstock corporation, intended to operate at break-even for the purpose of designing and administering advertising and promotional programs for all participating Domestic restaurants. Technology-based franchisee fees are meant to offset the costs of building, operating, and depreciating technology that supports franchisee operations. As such, these fees may vary from period to period, as they are designed to operate near break-even over time including the impact of depreciation. All Other is not a reportable segment under ASC 280, and this information is presented for informational purposes only. Please refer to the Company’s Form 10-Q for the second quarter ended June 29, 2025 for further information on segments, including reconciliations of segment measures to consolidated measures.

(b)

All Other costs and expenses excludes depreciation and amortization, stock-based compensation expense, and certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business.

(c)

See the Company’s Form 10-Q for the second quarter ended June 29, 2025 for further information on segments, including reconciliations of segment measures to consolidated measures for the quarter-ended June 29, 2025.

 

Papa Johns Investor Relations
investor_relations@papajohns.com

Source: Papa John’s International, Inc.