Papa John's International Stock

Papa John’s International, Inc. operates and franchises pizza delivery and carryout restaurants, and in certain international markets, dine-in and delivery restaurants under the trademark ‘Papa John’s’.

The company operates company-owned and franchised restaurants in 48 countries and territories. The company-owned restaurants include restaurants operated under three joint venture arrangements. All of its International restaurants are franchised. ‘Domestic’ is defined as within the contiguous United States, ‘North America’ includes Canada, and ‘International’ includes the rest of the world other than North America.

Segments

The company operates through four segments: Domestic Company-owned Restaurants, North America Franchising, North America Commissaries (Quality Control Centers), and International Operations.

Domestic Company-owned Restaurants

The Domestic Company-owned Restaurant segment consists of the operations of all Domestic company-owned restaurants and derives its revenues principally from retail sales of pizza, Papadias, and side items, including breadsticks, Papa Bites, cheesesticks, chicken poppers and wings, dessert items and canned or bottled beverages.

Operating company-owned restaurants allows the company to improve operations, training, marketing and quality standards for the benefit of the entire Papa John’s system.

North America Franchising

The North America Franchising segment consists of the company’s franchise sales and support activities and derives its revenues from the sale of franchise and development rights and the collection of royalties from the company’s franchisees located in the United States and Canada.

North America Commissary

The North America Commissary segment comprises full-service regional dough production and distribution Quality Control Centers (QC Centers) in the United States, which supply pizza sauce, dough, food products, paper products, smallwares and cleaning supplies twice weekly to each traditional restaurant served. The company also has QC Center in Canada, which produces and distributes fresh dough. The company evaluates the QC Center system capacity in relation to existing restaurants’ volumes and planned restaurant growth, and facilities are developed or upgraded as operational or economic conditions warrant. To ensure consistent food quality, each Domestic franchisee is required to purchase dough and pizza sauce from the company’s QC Centers and to purchase all other supplies from the company’s QC Centers or other approved suppliers.

International

International franchisees are defined as all franchise operations outside of the United States and Canada. The company operates International restaurants, all of which are franchised. The International segment principally consists of distribution sales to franchised Papa John’s restaurants located in the U.K. and the company’s franchise sales and support activities, which derive revenues from the sale of franchise and development rights and the collection of royalties from its International franchisees. The company operates International QC Center, which is in the U.K. Other QC Centers outside North America are operated by franchisees pursuant to license agreements or by other third parties.

Strategy

The company is committed to delivering on its brand promise ‘BETTER INGREDIENTS. BETTER PIZZA.’ and a business strategy designed to drive sustainable long-term, profitable growth. Papa John’s is driven by various strategic priorities, such as building a culture of leaders who believe in diversity, inclusivity and winning; re-establishing the superiority of its pizza via commercial platforms; improving unit-level profitability and performance of the company and franchisee restaurants; leveraging its technology infrastructure to drive its business operations; and profitably expanding its footprint domestically and internationally.

The company-owned restaurant growth strategy is to continue to open Domestic restaurants in existing markets as appropriate, thereby increasing consumer awareness and enabling the company to take advantage of operational and marketing scale efficiencies. The company has co-developed Domestic markets with some franchisees or divided markets among franchisees and will continue to use market co-development in the future, where appropriate.

Government Regulation

The company is subject to Federal Trade Commission (FTC) regulation and various state laws regulating the offer and sale of franchises.

Trademarks, Copyrights and Domain Names

The company has registered and maintains Internet domain names, including ‘papajohns.com’, and country code domains patterned as ‘papajohns.cc’, or a close variation thereof, with ‘.cc’ representing a specific country code.

History

Papa John's International, Inc. was founded in 1984. The company was incorporated in 1991.