LOUISVILLE, Ky. — Papa John's International's domestic system posted favorable second quarter results, but its overseas profits took a hit.
For the 12 weeks ended June 25, 2006, domestic system-wide comps rose 4.7 percent on revenue of $241.6 million, up 1.2 percent from $238.7 million in the same period in 2005. Net income was $15.3 million (including a net gain of $4 million from its franchisee-owned cheese purchasing company, BIBP Commodities Inc.), compared to $10.9 million last year.
The chain had 36 net unit openings during the quarter, including 17 closures in Mexico.
"Our second quarter results were very good, with our system now posting positive domestic comp sales for the nineteenth consecutive month," said Nigel Travis, Papa John's president and chief executive officer. "Our system continues to outperform the competition in a very challenging environment, even as we continue to make both domestic and international investments to sustain our long-term growth."
For the four weeks ended July 23, domestic system-wide comps increased 4.4 percent.
Revenue for the six months ended June 25 was $483.9 million, down 0.7 percent from $487.3 million in the comparable period. Net income was $31.3 million versus $20.8 million.
Despite system-wide international sales increases of 23.2 percent in the second quarter, overseas operations lost $4.8 million in first half of the year versus $1.5 million in the same period in 2005. The company cited continued development costs for its international support infrastructure as the reason for the loss and said it expects additional negative numbers for the rest of the year.
