Papa John’s International reported total revenue of $507.78m for the second quarter ended 30 June 2024, a decrease of 1.3% from $514.53m in the same period of 2023.
The decline was driven by lower revenue in its North American commissary segment, mainly because of a mix of lower volume and commodity prices.
Go deeper with GlobalData
For the first half of the year, revenue totalled $1.02bn, down by 1.9%, from $1.04bn in the first half of 2023.
Net income attributable to the company fell to $12.24m in Q2 2024, a decrease of $5.52m, or 31.1%, from $17.76m in the same period of the previous year. In the first half (H1) of 2024, net income dropped to $26.87m, down by $13.26 million, or 33.2%, from $40.14m in H1 2023.
Operating income for the second quarter decreased to $28.22m, a drop of $6.68m, or 19.2%, from $34.91m in Q2 2023. For the six months ending June 30, operating income was $61.94m, down by $10.76m, or 14.8%, compared to $72.70m in the previous year.
Adjusted operating income increased to $38.35m in the second quarter of 2024, up by $1.47m, or 4%, from $36.88m a year earlier.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe rise in adjusted operating income for the second quarter of 2024 was mainly driven by improved margins at its US company-owned restaurants and savings from local marketing efforts. However, these gains were partially offset by $3m in operating losses associated with the UK franchisee acquisition, as well as higher depreciation expenses related to company-owned restaurants and investments in technology platforms.
For the first half of 2024, adjusted operating income was $81.59m, an increase of $5.56m, or 7.3%, compared to $76.03m in the first half of 2023.
In the second quarter of 2024, global system-wide restaurant sales totalled $1.20bn, a decrease of 0.7% from the same period a year earlier after excluding the effects of foreign currency. This decline was mainly attributed to lower comparable sales in North America, somewhat mitigated by a 1.9% increase in global net unit growth over the preceding twelve months.
Comparable sales in North America decreased by 4% year-on-year, with a 4% decline at US company-owned restaurants and a 3% drop at North American franchised restaurants. Meanwhile, international comparable sales remained unchanged from the previous year.
Diluted earnings per share (EPS) for the second quarter were $0.37, a decrease of $0.17, or 31.5%, from $0.54 in Q2 2023. For the first six months, diluted EPS declined to $0.82, down by $0.38, or 31.7%, from $1.20 a year earlier. Adjusted diluted EPS for the second quarter was $0.61, up by $0.02, or 3.4%, from $0.59 in the same quarter of 2023. For H1, adjusted diluted EPS remained unchanged at $1.28.
Q2 saw 31 net unit closures, including 43 company-owned restaurants in the UK, due to planned strategic reductions in international operations.
Papa John’s International’s Q2 2024 net income attributable to the company fell 16.3% from $14.63 in the previous quarter, revenue dropped 1.1% from $513.91 and adjusted operating income declined by 11.3% from $43.24m.
