Papa John’s International Inc. overcame headwinds from higher commodity costs and a competitive domestic pizza segment to post gains in net income and earnings per share in the second quarter.
The Louisville, Ky.-based chain also raised its outlook for its international system.
For the second quarter ended June 26, Papa John’s net income rose 5.5 percent to $12.1 million, compared with $11.5 million a year earlier, excluding the impact of the consolidation of the BIBP Commodities Inc. purchasing cooperative. Earnings per share rose 9.4 percent to 47 cents per share, compared with 43 cents per share a year earlier, excluding results from BIBP.
Papa John’s total revenue increased 7 percent to $606 million, reflecting 46 net restaurant openings and a same-store sales increase of 2.1 percent at domestic company-owned units partially offset by a 0.1-percent decline in same-store sales at domestic franchise locations.
Same-store sales in the international system of 745 restaurants rose 4.8 percent.
“We are pleased with our solid second-quarter results,” said John Schnatter, Papa John’s founder and chief executive. “Even in the face of what continues to be a challenging commodity cost and competitive environment, the Papa John’s system ran positive comp sales in both North America and our international business. These results are a testament to the strength of our brand and our operators.”
The company reaffirmed its previously stated earnings per share guidance for fiscal 2011 of a range between $2.02 and $2.12 per share, assuming its previously disclosed guidance of yearly same-store sales increases between 2 percent and 3 percent in North America, as well as between 190 and 220 restaurants opened worldwide. Papa John’s raised its comparable-sales guidance for its international system to a range between 2 percent and 4 percent, up from a range of 1 percent to 3 percent.
Papa John’s operates or franchises 3,733 restaurants in all 50 states and 32 countries.