American pizza chain Papa John’s Q2 results has shown a 49.9% decrease in net income and 6.2% decline in total revenue for the second quarter ending 1 July 2018.
From $434,778 to $407,959 in revenues, the $26.8m decline is mainly due to lower comparable and commissary sales for North American restaurants.
The restaurant company also reported operating income of $25.36m, compared to $37.21m for the same period in the previous year.
Papa John’s president and CEO Steve Ritchie said: “Earlier this year, we began implementing key changes in how we operate and market our products to refocus on quality and better connect with customers.
“While results have been challenged by recent events, we are committed to these strategic priorities and continue to believe that they will lead to enhanced performance. We have also begun an external audit of Papa John’s culture and will address any improvements that are recommended at its conclusion.
“Our entire leadership team understands the importance of getting our culture and business improvements right. We have important work ahead of us, and I feel certain that with the collective efforts of our 120,000 corporate and franchise team members that the best days for Papa John’s are ahead.”
Alternatively, the company has reported a 12.2% increase in total international sales, as well as a 0.8% increase in international comparable sales.
During this quarter, the restaurant chain opened one company-owned restaurant, 26 franchised locations across North America and 61 locations internationally.
As of 1 July this year, there were 5,247 stores in 50 US states and 46 international countries and territories globally.
The restaurant chain also acquired 34 international stores and closed 44 stores in North America and nine stores internationally.