Papa Johns 2001 Annual Report Download - page 32

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28
million in 2001, from $47.1 million in 2000, due to the increase in domestic franchise sales previously
described.
The comparable sales base and average weekly sales for 2001 and 2000 for domestic Company-owned
and domestic franchised restaurants consisted of the following:
Company Franchise Company Franchise
Total units (end of year) 601 1,988 631 1,902
Equivalent units 619 1,931 596 1,764
Comparable sales base units 551 1,559 498 1,281
Comparable sales base percentage 89.0% 80.7% 83.6% 72.6%
Average weekly sales - comparable units 14,296$ 13,554$ 14,917$ 13,836$
Average weekly sales - other units 10,198$ 10,456$ 12,167$ 10,670$
Average weekly sales - all units 13,844$ 12,957$ 14,466$ 12,969$
Year Ended
December 30, 2001
Year Ended
December 31, 2000
Domestic franchise and development fees were $2.9 million for 2001 compared to $5.6 million for 2000
due primarily to 139 domestic franchise unit openings in 2001 as compared to 271 in 2000.
Domestic commissary, equipment and other sales increased 8.7% to $439.8 million in 2001, from $404.5
million in 2000, resulting primarily from the increase in domestic franchise sales as previously noted, as
well as an increase in the prices of cheese and certain other commodities.
International revenues consist of the Papa John’s UK operations which are denominated in British Pounds
Sterling and converted to U.S. dollars (90.5% of total 2001 international revenues), and combined
revenues from operations in eight other international markets denominated in U.S. dollars. Total
international revenues increased 3.4% to $31.9 million in 2001 compared to $30.8 million in 2000 (8.9%
prior to the unfavorable impact of exchange rates) due primarily to an increase in the number of
equivalent international franchise units open in 2001 compared to the 2000 period.
Costs and Expenses. The restaurant-operating margin for domestic Company-owned units was 18.6% in
2001 compared to 19.2% in 2000, consisting of the following differences:
• Cost of sales was 0.4% higher in 2001 due primarily to higher cheese costs. The cost of cheese,
representing approximately 35% to 40% of food cost, and other commodities are subject to
significant price fluctuations caused by weather, availability, demand and other factors. Most of
the factors affecting the cost of cheese are beyond our control (see “Item 1. Business - Quality
Control Centers: Strategic Supply Chain Management” and “Note 11” of “Notes to Consolidated
Financial Statements”).
• Salaries and benefits were 1.5% higher in 2001 due primarily to increased wage rates.
• Advertising and related costs were 1.2% lower ($6.4 million) in 2001 due to overall spending
reductions given the current economic environment.
• Occupancy costs were 0.6% higher in 2001 due primarily to increased utility and rent costs.