Papa Johns 2014 Annual Report Download - page 4

Let’s start by discussing why our simple strategy
of operating one store, 4,663 times is the best way
for us to think about our business, Papa John’s
delivered earnings per share of $1.75 for full-year 2014,
representing a 13% increase over 2013. We believe
running a business with a small-company, quality
mindset is a better way to create shareholder wealth
than a production, short-term, financial-engineering
mindset. Our market capitalization reached $2.2 billion
at year end, up $300 million over 2013, and over a
three-fold increase since 2009.
North American comparable sales grew by 6.7%,
marking the 11th consecutive year of increased or flat
sales growth on the continent. Our international story
is also strong – with international comparable sales
growth of 7.4%, our global system sales reached $3.3
billion in 2014, up $296 million over 2013.
We achieved success in spite of significant headwinds,
especially in the form of high cheese prices. We were
able to mitigate these challenges because of our quality
positioning and ability to pursue a premium pricing
strategy. Our quality heritage and better ingredients are
what dierentiate us and give us the ability to deliver
high-value limited time oers at a price point higher
than competitors can charge.
In addition to a strong pricing strategy, we are fortunate
to have the relentless drive of our operators, our Board
of Directors and our executive team. We have many
team members that started either making or delivering
pizza that are now top executives at Papa John’s—
notably Steve Ritchie, who started with Papa John’s as a
delivery driver 18 years ago, and was promoted to COO
this year. My appreciation and gratitude to each of you—
you’re what makes Papa John’s run successfully.
2009
$2.28B
$1.50
$2.00
$2.50
$3.00
$3.50
2010 2011 2012 2013 2014
Global System Sales
$2.39B
$2.57B
$2.85B
$3.02B
$3.32B
2009*
0.50
0.70
0.90
1.10
1.30
1.50
1.70
1.90
2010* 2011 2012 2013 2014
Earnings Per Share
$0.69
$0.92
$1.08
$1.29
$1.55
$1.75
1986
Papa John’s sold its 1st
franchise (Store #9) to
Scott & Roger Roalofs, who
are still with us today.
1991
Papa John’s 100th
restaurant opening.
1993
Papa John’s
files IPO at
Store #232.
1984
John converts a broom
closet into a pizza
kitchen.
1985
1st Papa John’s opens
in Jeersonville,
Indiana.
*Earnings per share for 2009 and 2010 are presented on a non-GAAP basis for comparability purposes. See the Investor Relations section of our w
To Our Shareholders, Franchisees, Supply Partners and Team Members:
Papa John’s turned 30 in 2014, and we had a lot to celebrate. For me, it was an important time to both reflect
and look ahead, considering not just how much has changed but what has and must remain the same as we go
forward. Looking to the past, I owe a great debt of gratitude to my Great Grandfather for having the courage
to leave Germany in 1867 at age 15 for America, allowing me, and all of the people who have been positively
impacted by the success of Papa John’s, the opportunity to eventually live the American dream. Papa John’s
would not be here without his decision to come to a society where free markets and private enterprise allow
hard-working people to create successful businesses that benefit so many. Moving forward, we must maintain
this work ethic and our unyielding focus on achieving better… Better Ingredients. Better Pizza. We believe
that when quality leads, the numbers will follow, and in 2014, our store operators and franchisees delivered in
spades. By executing on the fundamentals and delivering on the promise of better quality pizza, Papa John’s
achieved another year of strong growth and customer loyalty. Let me talk to this in detail.