American pizza chain Papa John’s International has reported a total revenue of $427m in the first quarter ending 31 March 2018, a 4.9% decline compared to the previous year’s $449m.
The $21.9m decline in revenues is mainly due to lower comparable and commissary sales as well as lower volumes for North American restaurants.
The restaurant company also reported a 37.5% decline in operating income to $27m, compared to $43m for the same period in the previous year.
In addition, net income declined by 41.1% from $28m last year to $16m, whereas the diluted earnings per share declined by 35.1% from $0.77 last year to $0.50 this year.
Papa John’s president and CEO Steve Ritchie said: “Although first quarter results were lower than the prior year, they were consistent with our expectations. We remain focused on enhancing our value perception and driving our strategic initiatives.”
However, the company has reported a 21.1% increase in international franchise sales as well as a 0.3% increase in international comparable sales.
During this quarter, the restaurant chain opened four company-owned restaurants, 22 franchised locations across North America and 53 locations internationally, bringing its total store count to 5,212 in 50 US states and 45 international countries and territories globally.
Furthermore, the restaurant chain acquired 31 franchised stores and closed 39 stores in North America and 23 stores internationally.