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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

Current Report
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
November 7, 2024

Commission File Number: 0-21660

PAPA JOHN’S INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)

Delaware                    61-1203323
(State or other jurisdiction of        (I.R.S. Employer Identification
incorporation or organization)        Number)

2002 Papa Johns Boulevard
Louisville, Kentucky 40299-2367
(Address of principal executive offices)

(502) 261-7272
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company [ ]








If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]


Securities registered pursuant to Section 12(b) of the Act:
Title of each class:Trading SymbolName of each exchange on which registered:
Common stock, $0.01 par value
PZZAThe NASDAQ Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None







Section 2 – Financial Information

Item 2.02 Results of Operations and Financial Condition

On November 7, 2024, Papa John’s International, Inc. issued a press release announcing third quarter 2024 financial results.

Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(d)     Exhibits

Exhibit
Number    Description

99.1        Papa John’s International, Inc. press release dated November 7, 2024.
104        Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

PAPA JOHN’S INTERNATIONAL, INC.
(Registrant)
Date: November 7, 2024
/s/ Ravi Thanawala
Ravi Thanawala
Chief Financial Officer & EVP, International












































EXHIBIT INDEX

Exhibit
Number
Description of Exhibit
104Cover Page Interactive Data File (embedded within the Inline XBRL document)




Exhibit 99.1
papajohnslogo.jpg

PAPA JOHNS ANNOUNCES THIRD QUARTER 2024 FINANCIAL RESULTS

Louisville, Kentucky (November 7, 2024) – Papa John’s International, Inc. (Nasdaq: PZZA) (“Papa Johns®”) (the “Company”) today announced financial results for the third quarter ended September 29, 2024.

Highlights
•North America comparable sales(a) were down 6% from a year ago as Domestic Company-owned restaurants were down 7% and North America franchised restaurants were down 5%; International comparable sales(a) were down 3% compared with the prior year period.
•25 net restaurant openings in the third quarter; North America remains on track for more than 100 gross restaurant openings in fiscal year 2024, while International anticipated gross openings increases to between 170 and 190 restaurants.
•Global system-wide restaurant sales were $1.19 billion, a 3%(b) decrease compared with the prior year third quarter, driven by lower comparable sales partially offset by trailing twelve month net restaurant growth.
•Total revenues of $507 million were down 3% compared with a year ago driven by lower International revenues resulting from the refranchising and closure of Company-owned restaurants and lower sales at our Domestic Company-owned restaurants.
•Operating income increased to $65 million compared with $32 million a year ago, while Adjusted operating income(c) decreased $4 million to $29 million primarily related to lower Domestic Company-owned restaurant-level margins, as anticipated, in the third quarter.
•Diluted earnings per common share of $1.27 compared with $0.48 for the third quarter of 2023; Adjusted diluted earnings per common share(c) was $0.43 compared with $0.53 for the third quarter a year ago.

“In my first few months at Papa Johns, I have been impressed with the disciplined execution of our teams. During the third quarter, we delivered earnings in line with our expectations in what continues to be a very challenging consumer environment,” said Todd Penegor, Papa Johns President and CEO.

“I joined Papa Johns because I could see the potential in this company. With our leadership team, we continue to evaluate the business and refine our key strategic initiatives. We are encouraged by the early progress we are making to improve our value perception along with our digital and loyalty experience. Reigniting our track record of innovation and prioritizing the customer experience and franchisee profitability, we’re confident Papa Johns can return to sustainable, profitable growth,” added Penegor. “We are excited about the opportunities ahead of us and look forward to sharing our progress with our investors and other key stakeholders.”
(a) North America and International comparable sales are reported on a 13-week basis comparing July 1, 2024 through September 29, 2024 with July 3, 2023 through October 1, 2023.
(b) Excludes the impact of foreign currency.
(c) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation to the most comparable US GAAP measures.
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Financial Highlights
Three Months EndedNine Months Ended
(In thousands, except per share amounts)September 29,
2024		September 24,
2023		Increase (Decrease)September 29,
2024		September 24,
2023		Increase (Decrease)
Total revenues$506,807 $522,812 $(16,005)$1,528,617 $1,564,391 $(35,774)
Operating income$65,229 $31,868 $33,361 $127,173 $104,576 $22,597 
Adjusted operating income (a)
$29,297 $33,638 $(4,341)$110,893 $109,671 $1,222 
Net income attributable to the Company$41,808 $15,861 $25,947 $68,687 $56,005 $12,682 
Diluted earnings per common share$1.27 $0.48 $0.79 $2.09 $1.68 $0.41 
Adjusted diluted earnings per common share (a)
$0.43 $0.53 $(0.10)$1.71 $1.80 $(0.09)

Results for the first nine months of 2024 are not directly comparable with the first nine months of 2023, as year-over-year comparisons are impacted by the UK franchisee acquisitions that occurred during the second and third quarters of 2023 and the UK restaurant closures and refranchising transactions in the second and third quarters of 2024.

Quarterly Results

Total revenues of $506.8 million decreased $16.0 million, or 3.1%, in the third quarter of 2024 compared with the prior year period. The lower revenues were largely attributable to: 1) a $9.9 million decrease in International revenues primarily reflecting the net impact of the UK Company-owned restaurants versus the prior year period; 2) an $8.5 million decrease in Domestic Company-owned restaurant sales reflecting lower transaction volumes; and, 3) a $4.8 million decrease related to Preferred Marketing, our formerly wholly-owned print and promotions company which was sold in the fourth quarter of 2023. Partially offsetting these declines was a $5.5 million increase in North America commissary revenues, reflecting higher commodity prices, partially offset by lower transaction volumes.

For the third quarter of 2024, Global system-wide restaurant sales were $1.19 billion, down 3.0% from the prior year quarter (excluding the impact of foreign currency). The decrease was due to lower comparable sales, partially offset by 1.6% global net restaurant growth on a trailing twelve-month basis.

Third quarter Operating income was $65.2 million, a $33.4 million increase compared with the prior year third quarter, primarily due to $41.3 million of gains associated with the sale(b) of two Quality Control Center properties (“QC Centers”) in the current year third quarter. Adjusted operating income(a) was $29.3 million, a $4.3 million, or 12.9%, decrease from the same period a year ago. The variance between Operating income and Adjusted operating income was due to the aforementioned gains from the QC Center sales, $3.9 million of International restructuring costs in the UK, and a $1.5 million non-cash impairment charge primarily related to fixed and intangible assets from the refranchising of 15 Domestic restaurants.

The decrease in Adjusted operating income in the third quarter of 2024 was primarily due to anticipated lower operating margins at our Domestic Company-owned restaurants as the Company strategically reinvested some of its first-half savings into improving its value perception with consumers.

(a) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation to the most comparable US GAAP measures.
(b) Properties were subsequently leased back by the Company. See “Note 11. Divestitures” in the Company’s Form 10-Q for the quarter ended September 29, 2024 for additional information.
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Diluted earnings per common share was $1.27 for the third quarter of 2024 compared with $0.48 in the third quarter of 2023. Adjusted diluted earnings per common share(a) was $0.43 for the third quarter of 2024 compared with $0.53 in the third quarter of 2023. These changes were driven by the same factors impacting Operating income and Adjusted operating income as discussed above. In addition, diluted earnings per common share and Adjusted diluted earnings per common share reflected lower interest expense and a higher effective tax rate compared with the third quarter of 2023. Interest expense decreased largely due to lower average outstanding debt compared with the prior year third quarter. The higher tax rate reflects the impairment charges related to the International Restructuring program as well as the shortfall from the vesting of long-term equity awards, resulting in an additional tax expense when compared with the prior year period.

See the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our Quarterly Report on Form 10-Q filed with the SEC for additional information concerning our operating results for the three and nine months ended September 29, 2024.
(a) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation to the most comparable US GAAP measures.
3

Global Restaurant Sales Information

Global restaurant and comparable sales information for the three and nine months ended September 29, 2024, compared with the three and nine months ended September 24, 2023 are as follows (See “Supplemental Information and Financial Statements” below for related definitions):

Three Months EndedNine Months Ended
Amounts below exclude the impact of foreign currencySeptember 29,
2024		September 24,
2023		September 29,
2024		September 24,
2023
Comparable sales growth (decline):
Domestic Company-owned restaurants(6.7)%5.9%(4.6)%3.8%
North America franchised restaurants(5.3)%2.2%(3.4)%(0.4)%
North America restaurants(5.6)%2.9%(3.6)%0.4%
International restaurants(2.8)%(0.3)%(1.8)%(2.3)%
Total comparable sales growth (decline)(4.9)%2.2%(3.2)%(0.2)%
System-wide restaurant sales growth (decline):
Domestic Company-owned restaurants(4.8)%6.7%(2.8)%4.7%
North America franchised restaurants(3.8)%3.2%(2.4)%1.1%
North America restaurants(4.0)%3.9%(2.5)%1.8%
International restaurants (a)
—%8.8%2.2%6.8%
Total global system-wide restaurant sales growth (decline) (a)
(3.0)%5.1%(1.4)%3.0%

Global Restaurants

As of September 29, 2024, there were 5,908 Papa Johns restaurants operating in 49 countries and territories, as follows:

Third QuarterDomestic Company OwnedFranchised North AmericaTotal North AmericaInternational Company OwnedInternational FranchisedTotal InternationalSystem-wide
Beginning - June 30, 2024537 2,910 3,447 33 2,403 2,436 5,883 
Opened— 18 18 — 36 36 54 
Closed— (11)(11)— (18)(18)(29)
Refranchised— — — (20)20 — — 
Ending - September 29, 2024537 2,917 3,454 13 2,441 2,454 5,908 
Net restaurant growth/(decline)— 7 7 (20)38 18 25 
Trailing four quarters net restaurant growth11 46 57 (105)139 34 91 



(a) System-wide sales for the nine months ended September 29, 2024 include $7.1 million of International sales related to the first and second quarters of 2024 that were erroneously omitted in prior periods.
4

Free Cash Flow

Free cash flow, a non-GAAP financial measure which the Company defines as net cash provided by operating activities, less purchases of property and equipment, was $9.0 million for the nine months ended September 29, 2024, compared with $76.0 million in the prior year period. The year over year change primarily reflects unfavorable working capital changes and timing of cash payments for advertising and income taxes, partially offset by a $4.0 million decrease in capital expenditures.

Nine Months Ended
(in thousands)September 29,
2024		September 24,
2023
Net cash provided by operating activities$55,884 $126,936 
Purchases of property and equipment(46,931)(50,905)
Free cash flow$8,953 $76,031 

We view free cash flow as an important financial measure because it is one factor that management uses in determining the amount of cash available for discretionary investment. Free cash flow is not a term defined by GAAP, and as a result, our measure of free cash flow might not be comparable to similarly titled measures used by other companies. Free cash flow should not be construed as a substitute for or a better indicator of the Company’s performance than the Company’s GAAP measures.

Cash Dividend

The Company paid cash dividends of $15.2 million ($0.46 per common share) in the third quarter of 2024. On October 29, 2024, our Board of Directors declared a fourth quarter dividend of $0.46 per common share. The dividend will be paid on November 29, 2024 to stockholders of record as of the close of business on November 18, 2024.


5

Conference Call

Papa Johns will host a call with analysts today, November 7, 2024, at 8:00 a.m. Eastern Time. To access the conference call or webcast, please register online at: ir.papajohns.com/events-presentations. A replay of the webcast will be available two hours after the call and archived on the same web page.

About Papa Johns

Papa John’s International, Inc. (Nasdaq: PZZA) opened its doors in 1984 with one goal in mind: BETTER INGREDIENTS. BETTER PIZZA.® Papa Johns believes that using high-quality ingredients leads to superior quality pizzas. Its original dough is made of only six ingredients and is fresh, never frozen. Papa Johns tops its pizzas with real cheese made from mozzarella, pizza sauce made with vine-ripened tomatoes that go from vine to can in the same day and meat free of fillers. It was the first national pizza delivery chain to announce the removal of artificial flavors and synthetic colors from its entire food menu. Papa Johns is co-headquartered in Atlanta, Ga. and Louisville, Ky. and is the world’s third-largest pizza delivery company with more than 5,900 restaurants in approximately 50 countries and territories. For more information about the Company or to order pizza online, visit www.papajohns.com or download the Papa Johns mobile app for iOS or Android.

Forward-Looking Statements

Certain matters discussed in this press release and other Company communications that are not statements of historical fact constitute forward-looking statements within the meaning of the federal securities laws. Generally, the use of words such as “expect,” “intend,” “estimate,” “believe,” “anticipate,” “will,” “forecast,” “outlook”, “plan,” “project,” or similar words identify forward-looking statements that we intend to be included within the safe harbor protections provided by the federal securities laws. Such forward-looking statements include or may relate to projections or guidance concerning business performance, revenue, earnings, cash flow, earnings per share, share repurchases, the current economic environment, commodity and labor costs, currency fluctuations, profit margins, supply chain operating margin, net unit growth, unit level performance, capital expenditures, restaurant and franchise development, restaurant acquisitions, restaurant closures, labor shortages, labor cost increases, changes in management, inflation, royalty relief, franchisee support and incentives, the effectiveness of our menu innovations and other business initiatives, investments in product and digital innovation, marketing efforts and investments, liquidity, compliance with debt covenants, impairments, strategic decisions and actions, changes to our national marketing fund, changes to our commissary model, dividends, effective tax rates, regulatory changes and impacts, investments in and repositioning of the UK market, International restructuring plans, timing and costs, International consumer demand, adoption of new accounting standards, and other financial and operational measures. Such statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond our control. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements.

Our forward-looking statements are based on our assumptions which are based on currently available information. Actual outcomes and results may differ materially from those matters expressed or implied in our forward-looking statements as a result of various factors, including but not limited to risks related
6

to: deteriorating economic conditions in the U.S. and international markets, including the United Kingdom; labor shortages at Company and/or franchised restaurants and our quality control centers; increases in labor costs, changes in commodity costs, supply chain incentive-based rebates, or sustained higher other operating costs, including as a result of supply chain disruption, inflation or climate change; the potential for delayed new restaurant openings, both domestically and internationally, or lower net unit development due to changing circumstances outside of our control; the increased risk of phishing, ransomware and other cyber-attacks; risks and disruptions to the global economy and our business related to the conflicts in Ukraine and the Middle East and other international conflicts and risks related to a possible economic recession or downturn that could reduce consumer spending or demand. These and other risks, uncertainties and assumptions that are involved in our forward-looking statements are discussed in detail in “Part I. Item 1A. – Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise, except as required by law.

* * * *

For more information about the company, please visit www.papajohns.com.

Contact

Papa Johns Investor Relations
investor_relations@papajohns.com
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Supplemental Information and Financial Statements

Definitions

“Comparable sales” represents sales for the same base of restaurants for the same fiscal periods. “Comparable sales growth (decline)” represents the change in year-over-year comparable sales. “Global system-wide restaurant sales” represents total restaurant sales for all Company-owned and franchised restaurants open during the comparable periods, and “Global system-wide restaurant sales growth (decline)” represents the change in global system-wide restaurant sales year-over-year. Comparable sales, Comparable sales growth (decline), Global system-wide restaurant sales and Global system-wide sales growth (decline) exclude franchisees for which we suspended corporate support.

We believe Domestic Company-owned, North America franchised, and International Comparable sales growth (decline) and Global system-wide restaurant sales information is useful in analyzing our results since our franchisees pay royalties and marketing fund contributions that are based on a percentage of franchise sales. Comparable sales and Global system-wide restaurant sales results for restaurants operating outside of the United States are reported on a constant dollar basis, which excludes the impact of foreign currency translation. Franchise sales also generate commissary revenue in the United States and in certain international markets. Comparable sales growth (decline) and Global system-wide restaurant sales information is also useful for comparison to industry trends and evaluating the strength of our brand. Management believes the presentation of Global system-wide restaurant sales growth, excluding the impact of foreign currency, provides investors with useful information regarding underlying sales trends and the impact of new unit growth without being impacted by swings in the external factor of foreign currency. Franchise restaurant sales are not included in the Company’s revenues.
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Non-GAAP Financial Measures

In addition to the results provided in accordance with U.S. GAAP, we provide certain non-GAAP measures, which present results on an adjusted basis. These are supplemental measures of performance that are not required by or presented in accordance with U.S. GAAP and include the following: Adjusted operating income, Adjusted net income attributable to common shareholders and Adjusted diluted earnings per common share. We believe that our non-GAAP financial measures enable investors to assess the operating performance of our business relative to our performance based on U.S. GAAP results and relative to other companies. We believe that the disclosure of these non-GAAP measures is useful to investors as they reflect metrics that our management team and Board utilize to evaluate our operating performance, allocate resources and administer employee incentive plans. The most directly comparable U.S. GAAP measures to Adjusted operating income, Adjusted net income attributable to common shareholders and Adjusted diluted earnings per common share are Operating income, net income attributable to common shareholders and diluted earnings per common share, respectively. These non-GAAP measures should not be construed as a substitute for or a better indicator of the Company’s performance than the Company’s U.S. GAAP results. The table that follows reconciles our GAAP financial results to our non-GAAP financial measures.

Three Months EndedNine Months Ended
(In thousands, except per share amounts)September 29,
2024		September 24,
2023		September 29,
2024		September 24,
2023
Operating income$65,229$31,868$127,173$104,576
Gain on sale of QC Center properties (a)
(41,289)—(41,289)—
International restructuring costs (b)
3,862—19,514—
UK repositioning and acquisition-related costs (c)
—1,193—2,501
Legal settlements (d)
—577—577
Other costs (e)
1,495—5,4952,017
Adjusted operating income$29,297$33,638$110,893$109,671
Net income attributable to common shareholders$41,808$15,861$68,687$56,005
Gain on sale of QC Center properties (a)
(41,289)—(41,289)—
International restructuring costs (b)
3,862—19,514—
UK repositioning and acquisition-related costs (c)
—1,193—2,501
Legal settlements (d)
—577—577
Other costs (e)
1,495 — 5,495 2,017 
Tax effect of adjustments (f)
8,121 (404)3,679 (1,162)
Adjusted net income attributable to common shareholders$13,997$17,227$56,086$59,938
Diluted earnings per common share$1.27$0.48$2.09$1.68
Gain on sale of QC Center properties (a)
(1.25)—(1.25)—
International restructuring costs (b)
0.12—0.59—
UK repositioning and acquisition-related costs (c)
—0.04—0.07
Legal settlements (d)
—0.02—0.02
Other costs (e)
0.04—0.170.06
Tax effect of adjustments (f)
0.25(0.01)0.11(0.03)
Adjusted diluted earnings per common share$0.43$0.53$1.71$1.80

Refer to footnotes on following page.
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Footnotes to Non-GAAP Financial Measures
(a)Represents pre-tax gain on sale, net of transaction costs, realized upon the August 2, 2024 completion of the sale of our Texas and Florida QC Center properties.
(b)Represents costs associated with the Company’s International Restructuring plan. For the three and nine months ended September 29, 2024, these costs are comprised primarily of lease and fixed asset impairment charges related to restaurant closures in the UK, professional services and other related costs, losses on refranchising Company-owned restaurants, losses on franchisee notes receivable, lease termination costs, as well as severance.
(c)Represents costs associated with repositioning the UK portfolio as well as transaction costs related to the acquisition of restaurants from franchisees.
(d)Represents accruals for certain legal settlements, recorded in General and administrative expenses.
(e)For the three and nine months ended September 29, 2024, represents non-cash impairment and remeasurement charges related primarily to fixed and intangible assets from the refranchising of 15 Domestic Company-owned restaurants. For the three and nine months ended September 24, 2023, represents severance and related costs associated with the transition of certain executives, recorded in General and administrative expenses.
(f)The tax effect on non-GAAP adjustments was calculated by applying the marginal tax rates of 22.6% and 22.8% for the three and nine months ended September 29, 2024 and September 24, 2023, respectively.
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Papa John’s International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)September 29,
2024		December 31,
2023
(Unaudited)
Assets
Current assets:
Cash and cash equivalents$17,550 $40,587 
Accounts receivable, net101,804 104,244 
Notes receivable, current portion5,728 5,199 
Income tax receivable2,414 2,577 
Inventories36,488 36,126 
Prepaid expenses and other current assets51,873 42,285 
Total current assets215,857 231,018 
Property and equipment, net266,508 282,812 
Finance lease right-of-use assets, net25,535 31,740 
Operating lease right-of-use assets191,194 164,158 
Notes receivable, less current portion, net7,346 12,346 
Goodwill76,460 76,206 
Other assets77,975 76,725 
Total assets$860,875 $875,005 
Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit
Current liabilities:
Accounts payable$62,800 $74,949 
Income and other taxes payable10,166 17,948 
Accrued expenses and other current liabilities139,301 158,167 
Current deferred revenue19,645 20,427 
Current finance lease liabilities6,962 9,029 
Current operating lease liabilities26,001 24,076 
Current portion of long-term debt5,650 — 
Total current liabilities270,525 304,596 
Deferred revenue18,737 20,366 
Long-term finance lease liabilities19,921 24,144 
Long-term operating lease liabilities180,137 151,050 
Long-term debt, less current portion, net721,355 757,422 
Other long-term liabilities64,882 60,192 
Total liabilities1,275,557 1,317,770 
Redeemable noncontrolling interests937 851 
Stockholders’ deficit:
Common stock ($0.01 par value per share; issued 49,282 at September 29, 2024 and 49,235 at December 31, 2023)493 492 
Additional paid-in capital449,141 452,290 
Accumulated other comprehensive loss(6,580)(7,803)
Retained earnings242,269 219,027 
Treasury stock (16,645 shares at September 29, 2024 and 16,747 shares at December 31, 2023, at cost)(1,116,256)(1,123,098)
Total stockholders’ deficit(430,933)(459,092)
Noncontrolling interests in subsidiaries15,314 15,476 
Total Stockholders’ deficit (415,619)(443,616)
Total Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit$860,875 $875,005 
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Papa John’s International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)

Three Months EndedNine Months Ended
(In thousands, except per share amounts)September 29,
2024		September 24,
2023		September 29,
2024		September 24,
2023
Revenues:
Domestic Company-owned restaurant sales$168,672 $177,195 $518,103 $532,841 
North America franchise royalties and fees33,831 35,041 103,937 105,824 
North America commissary revenues210,389 204,887 611,873 624,433 
International revenues33,024 42,927 113,433 108,998 
Other revenues60,891 62,762 181,271 192,295 
Total revenues506,807 522,812 1,528,617 1,564,391 
Costs and expenses:
Operating costs (excluding depreciation and amortization shown separately below):
Domestic Company-owned restaurant expenses142,403 145,433 419,189 436,922 
North America commissary expenses193,818 189,551 561,316 576,434 
International expenses19,001 29,796 74,424 67,542 
Other expenses55,543 57,587 164,261 177,661 
General and administrative expenses13,553 52,173 129,726 154,441 
Depreciation and amortization17,260 16,404 52,528 46,815 
Total costs and expenses441,578 490,944 1,401,444 1,459,815 
Operating income65,229 31,868 127,173 104,576 
Net interest expense(10,629)(11,378)(32,588)(31,674)
Income before income taxes54,600 20,490 94,585 72,902 
Income tax expense12,812 4,539 25,347 16,546 
Net income before attribution to noncontrolling interests41,788 15,951 69,238 56,356 
Net loss (income) attributable to noncontrolling interests20 (90)(551)(351)
Net income attributable to the Company$41,808 $15,861 $68,687 $56,005 
Basic earnings per common share $1.28 $0.49 $2.10 $1.69 
Diluted earnings per common share$1.27 $0.48 $2.09 $1.68 
Basic weighted average common shares outstanding32,745 32,564 32,701 33,053 
Diluted weighted average common shares outstanding32,930 32,800 32,850 33,287 
Dividends declared per common share$0.46 $0.46 $1.38 $1.30 
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Papa John’s International, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
(In thousands)September 29,
2024		September 24,
2023
Operating activities
Net income before attribution to noncontrolling interests$69,238 $56,356 
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for allowance for credit losses on accounts and notes receivable2,936 1,348 
Depreciation and amortization52,528 46,815 
Refranchising and impairment loss17,433 — 
Deferred income taxes3,877 3,481 
Stock-based compensation expense5,903 13,224 
Gain on disposal of property and equipment(42,034)— 
Other614 331 
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable879 (11,643)
Income tax receivable232 7,617 
Inventories(207)3,875 
Prepaid expenses and other current assets(1,684)(2,104)
Other assets and liabilities(5,923)2,057 
Accounts payable(12,389)15,237 
Income and other taxes payable(7,609)1,087 
Accrued expenses and other current liabilities(25,837)(6,579)
Deferred revenue(2,073)(4,166)
Net cash provided by operating activities55,884 126,936 
Investing activities
Purchases of property and equipment(46,931)(50,905)
Notes issued(154)(7,310)
Repayments of notes issued3,148 5,759 
Acquisitions, net of cash acquired— (5,599)
Proceeds from dispositions49,012 — 
Other2,373 401 
Net cash provided by (used in) investing activities7,448 (57,654)
Financing activities
Net (repayments) proceeds of revolving credit facilities(31,589)185,789 
Proceeds from exercise of stock options1,021 1,816 
Acquisition of Company common stock— (210,348)
Dividends paid to common stockholders(45,381)(43,641)
Tax payments for equity award issuances(3,508)(6,279)
Distributions to noncontrolling interests(627)(651)
Principal payments on finance leases(6,778)(5,975)
Other278 150 
Net cash used in financing activities(86,584)(79,139)
Effect of exchange rate changes on cash and cash equivalents215 (24)
Change in cash and cash equivalents(23,037)(9,881)
Cash and cash equivalents at beginning of period40,587 47,373 
Cash and cash equivalents at end of period$17,550 $37,492 
13
v3.24.3
Cover
Nov. 07, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 07, 2024
Entity File Number 0-21660
Entity Registrant Name PAPA JOHN’S INTERNATIONAL, INC.
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 61-1203323
Entity Address, Address Line One 2002 Papa Johns Boulevard
Entity Address, City or Town Louisville
Entity Address, State or Province KY
Entity Address, Postal Zip Code 40299-2367
City Area Code 502
Local Phone Number 261-7272
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common stock, $0.01 par value
Trading Symbol PZZA
Security Exchange Name NASDAQ
Amendment Flag false
Entity Central Index Key 0000901491
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