While international comparable sales dipped 6% compared to a year ago and North America comparable sales landed flat, Papa Johns recorded another quarter of record global systemwide restaurant sales in its first quarter of 2023 that ended March 26.
During the quarter the brand launched a proprietary menu innovation called Doritos Cool Ranch Papadia and remains focused on opening 1,400 to 1,800 units by 2025, according to a press release.
Additional Q1 highlights included:
- 27 net unit openings in the first quarter driven by international growth; on track to achieve 270 to 310 net new units in 2023.
- Global systemwide restaurant sales were $1.24 billion, a 2% increase from the prior year first quarter.
- Total revenues of $527 million were down 3% from a record first quarter a year ago. Revenues were up slightly when excluding the impact of refranchising 90 restaurants in 2022.
- Diluted earnings per common share was $0.65, compared with $0.29 for the first quarter of 2022; Adjusted diluted earnings per common share(b) was $0.68, compared with $0.95 for the first quarter a year ago.
“We delivered another solid quarter, achieving the highest systemwide sales in company history through strong performing innovation and continued strength of company operations,” Rob Lynch, Papa Johns’ president and CEO, said in the release. “Customers are responding favorably to our marketing and menu innovation strategy and our teams are doing an excellent job executing our Back to Better initiative. In our corporate-owned restaurants, our teams are delivering significant improvements in out-the-door times, increasing overall customer satisfaction and driving operational efficiencies and profitability, which is helping to offset continued wage inflation. The company-owned restaurant comp sales growth of more than 3% in the first quarter is a testament to the strength of our product offerings and the operational improvements our team is making.”
The brand is also aiming to open 650 restaurants in India by 2033.
“This agreement is another great example of the vast white space development opportunities available to us globally and the quality of the franchisees that are investing in our future. Papa Johns remains a sought-after brand both domestically and internationally driven by the strong underlying long-term fundamentals of our franchisee model, and attractive franchisee payback and unit economics. We continue on our path to achieve our long-term unit growth targets as we execute our plan to build the world’s best pizza company,” said Lynch in the release.
The Q1 news comes just days after the brand appointed Mark Shambura to chief marketing officer.