In advance of upcoming meetings with investors and analysts, Papa John’s International, Inc.
(Nasdaq: PZZA) today announced its 2002 growth plans. In 2002, the company projects
earnings in the range of $2.15 to $2.25 per share, based on the following:
• 150 to 200 restaurant openings (95 to 130 domestic franchise, 45 to 55 international franchise and 10 to 15 corporate restaurants).
• The potential closing of 50 to 100 restaurants, primarily domestic franchise units.
• Domestic system restaurant sales growth of 3% to 5%, including flat to 2% comparable
sales growth.
• Corporate restaurant operating margin of 18.5% to 19.5%.
• Commissary, equipment and other operating margin of 9.5% to 10.0%.
• International system restaurant sales growth of 10% to 15%.
• An operating margin of 10% to 12% on its international operations (excluding royalties and franchise development fees).
• General and administrative expenses of 7.3% to 7.5% of revenues.
• Depreciation and amortization of 3.7% to 3.9% of revenues.
• Pre-opening and other general expenses of $2.5 to $3.0 million.
• Net interest expense of $5.0 to $5.5 million.
• An effective tax rate of approximately 37.8%.
• Capital expenditures of $38 to $40 million.
The earnings forecast for 2002 does not consider the impact of new accounting guidance that
essentially eliminates the routine amortization of goodwill beginning in 2002, which is expected to
increase earnings per share by $0.06 to $0.07 in 2002. The forecast also does not reflect the
impact of any additional share repurchases which the company may undertake during the
remainder of 2001, or 2002 if its Board of Directors determines to extend the company’s share
repurchase program beyond the end of 2001.
At September 30, 2001, there were 2,722 Papa John’s restaurants (633 company-owned and 2,089
franchised) operating in 47 states and nine international markets. Papa John’s also owns or franchises 195 Perfect Pizza restaurants
(3 company-owned and 192 franchised) in the United Kingdom. For more information about the company, visit Papa John’s at
http://www.papajohns.com.
