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Papa John’s reports 28% fall in Q2 profits

Total revenue rose by 1.5% to $522.7m, from $515m in the same period a year ago.

Papa John’s International has reported a net income of $25.4m for the second quarter of 2022, a decline of 28% compared with $35.3m a year ago.

The American pizza chain’s total revenue was up by 1.5% to $522.7m, from $515m in the second quarter of 2021.

Excluding the impact of refranchising 90 restaurants in the first quarter of this year, revenues increased by 5.2%, the company said in its press statement.

The restaurant company’s consolidated operating income during the quarter declined to $38.9m, from $44.63m last year.

Papa John’s comparable sales in North America grew by 0.9% but declined by 8% internationally, lapping the previous year’s gains of 5.2% and 21.2%, respectively.

The pizza chain’s global system-wide sales totalled $1.2bn, which represents an increase of 2.6% compared to the same period last year.

In the latest quarter, Papa Johns reported 47 net unit openings, driven mostly by international openings.

The company expects its net unit openings in 2022 to remain in the range of 280 to 320 units.

It also announced a 20% increase in the annual dividend rate to $1.68 per share.

Papa John’s International president and CEO Rob Lynch said: “Papa Johns delivered a 12th consecutive quarter of positive North American comparable sales in the second quarter, building on gains of more than 30% over the two years prior.

“Our momentum over the past three years is the direct result of our differentiated brand, menu innovations, and digital investments, which focus on delivering premium value for our customers.

“The proven agility of our business model, our scale, and our data advantage give us confidence in our ability to sustain positive North American comps in the second half of this year and into the future as we continue to navigate a dynamic macroeconomic environment.”

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