American pizza restaurant chain Papa John’s has posted a 43.3% dip in attributable net income for the fourth quarter (Q4) of 2024, dropping to $14.79m from $26.09m in the same period of 2023.
The financial results for Q4 2024 are not directly comparable to those of 2023 due to an additional week of operations in Q4 2023.
For the quarter ending 29 December 2024, the company’s diluted earnings per share dropped to $0.44, down from $0.79 in Q4 2023.
Adjusted diluted earnings per share fell from $0.91 to $0.63.
Total revenues for the quarter decreased 7.1% year-on-year to $530.8m from $571.32m.
The company attributed the $40.6m revenue decline primarily to the additional week in Q4 2023, which contributed $41m, and a $17.8m drop in company-owned restaurant revenues.
Global system-wide restaurant sales also declined 7.9% to $1.23bn, again influenced by the additional week in 2023.
North American comparable sales declined 4% year-on-year, with domestic company-owned restaurants down 6% and North American franchised restaurants down 4% in Q4 2024.
In contrast, international comparable sales(a) increased 2% compared to Q4 2023.
For the full year 2024, Papa John’s reported a slight increase in net income, with $83.48m compared to $82.09m in 2023.
However, total revenues for the year were down 3.6% to $2.1bn.
Diluted earnings per share for 2024 were higher at $2.54, compared to $2.48 in 2023.
Looking ahead to 2025, the company expects system-wide sales growth of between 2% and 5%, and increases in comparable sales across North America and international markets between flat and 2%.
The company plans to open between 85 and 115 restaurants in North America and between 180 and 200 internationally in 20245.
Papa John’s president and CEO Todd Penegor stated: “I am pleased with the early progress we are seeing in our transformation as we work to improve our value perception, simplify our operations and enhance our digital and loyalty experiences. These efforts helped to deliver results consistent with our fourth quarter expectations.”
“We have defined our strategic priorities to take market share as we move forward with urgency to execute on initiatives to drive sales momentum in the near-term while meaningfully increasing profitability over time.”
In November 2024, Papa John’s appointed Jenna Bromberg as its new chief marketing officer.
“Papa John’s attributable net income dips in Q4 2024” was originally created and published by Verdict Food Service, a GlobalData owned brand.
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