Papa John’s International, a prominent pizza chain in the US, reported an attributable net income of $14.63 million for the first quarter (Q1) of 2024, down 34% compared to $22.37 million a year previously.
For the quarter ended on March 31, 2024, the company witnessed a decline in total revenues to $513.91 million from $527.04 million in Q1 2023.
The decrease in total revenues stemmed mainly from reduced earnings in the North American commissary segment, which were impacted by declines in commodity prices.
Papa John’s operating income experienced a downturn as well, dropping by 11% to $33.71 million, in contrast to $37.79 million in Q1 2023.
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The company’s global system-wide restaurant sales amounted to $1.23 billion, reflecting a marginal 0.9% decrease from the previous year’s Q1.
North American comparable sales saw a 2% drop, with domestic company-owned restaurants down by 3%.
Comparable sales internationally also decreased by 3% compared to the same period in the previous year.
In Q1 2024, Papa John’s maintained its expansion momentum by inaugurating eight net new units, fueled by North American growth.
The company is poised to achieve over 20% net unit growth in North America compared to 2023 and expects to open between 100 and 140 new international restaurants.
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Ravi Thanawala, Papa John’s interim CEO and chief financial officer, stated, “Our teams are adopting a disciplined strategy to manage the business, enhancing restaurant-level margins, and boosting operating profits despite the challenges faced in the first quarter.”
“Moreover, we’re achieving significant advancements with our Back to Better 2.0 and International Transformation initiatives.”
“The fundamental enhancements we’re implementing in our restaurant operations, digital solutions, and marketing platforms aim to foster sustainable, profitable growth worldwide.”
