Papa Johns 1998 Annual Report Download - page 21

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18
support services subsidiary, Papa John’s
Support Services. We believe that, in addition
to supporting both Company and franchised
growth, these subsidiaries contribute to product
quality and consistency throughout the Papa
John’s system.
We continually strive to obtain high quality
sites with greater access and visibility, and
to enhance the appearance and quality of our
restaurants. We believe that these factors
improve our image and brand awareness.
During 1998 and 1997, we pursued a greater
number of free-standing conversion and
prototype locations. As of December 28, 1998,
free-standing units represented approximately
27% of the total Company-owned restaurants.
We expect this ratio to remain fairly consistent
in future years.
The average cash investment for the 60
Company-owned restaurants opened during
1998, exclusive of land, increased to approximately
$261,000 from $257,000 for the 76 units opened
in 1997. This increase was primarily due to an
overall increase in the equipment and building
costs per store, principally for the free-standing
buildings. We expect the average cash
investment for restaurants opening in 1999
not to exceed the 1998 amount.
We defer certain costs incurred in connection
with the development of our information
systems and amortize such costs over periods
of up to five years from the date of completion.
Our fiscal year ends on the last Sunday
in December of each year. All fiscal years
presented consist of 52 weeks.
The Board of Directors approved a 3-for-2
stock split in February 1996 and an additional
3-for-2 stock split in October 1996, each of
which was effected in the form of a 50% stock
dividend. All share data included in this
Annual Report have been restated to reflect
these stock splits.