Papa John's income falls 3% in quarter

by Eric Schroeder
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LOUISVILLE, KY. — Net income at Papa John’s International, Inc. eased 3% to $16,427,000 in the first quarter ended March 27. This compared with income of $16,875,000 in the first quarter of fiscal 2010.
Revenues rose 9% to $312,467,000, as domestic company-owned restaurant sales increased 7% to $138,671,000.

“We are extremely pleased with our first-quarter results,” said John Schnatter, founder, chairman and chief executive officer. “In addition to posting what we believe to be industry leading 6.1% North American comps during the quarter, this marks the eighth consecutive quarter of positive North American transaction growth for the Papa John’s system. Our international operators also posted outstanding 5.6% positive comp sales, in our first quarter for reporting international comps.”

Papa John’s updated its earnings-per-share guidance to $2.02 to $2.12 for fiscal 2011, up from its earlier estimate of $2 to $2.12. The company said its solid first-quarter results are expected to “substantially mitigate the unfavorable impact of projected commodity cost increases, most notably cheese, as well as increased fuel costs, throughout the remainder of the year.”

The company also updated its comparable sales increase range for North America to 2% to 3% from 1.5% to 2.5%. Full-year international comparable sales increases remain in a range of 1% to 3%.

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