Papa John's sees lower comps in '02 after 2.5% dip in 3rd Q

Nation's Restaurant News,  Oct 28, 2002  by James Peters

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LOUISVILLE, KY. -- Papa John's International Inc. reported a 2.5-percent decline in domestic systemwide same-store sales for its third quarter ended Sept. 29, vs. the year-ago quarter.

The decline consisted of a 0.7-percent decrease in same-store sales at company-owned units and a 3-percent decline at franchised units.

Nine-month domestic systemwide same-store sales fell 1.2 percent, rising 0.1 percent at company units and dropping 1.7 percent at franchised restaurants.

Papa John's, citing its declining sale performance for the third-quarter and nine-month periods as well as the competitive economic environments, lowered its fiscal 2002 estimates to the range of a 2-percent drop to flat sales from its previous projections of flat sales to 2-percent growth.

Despite the downward revision in its same-store-sales outlook, the company expects that earnings per share for the third quarter will be at or near the upper end of its estimates, which are expected to be in the range of 51 cents to 53 cents. The company attributed its EPS expectations mainly to favorable commodity costs and the beneficial impact of share repurchases.

Contact assistant financial editor James Peters at Nation Restaurant News, 425 Park Ave., New York, N.Y. 10022. Fax materials to (212) 756-5215. He can be reached at (212) 756-5193.

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