Papa Johns 2003 Annual Report Download - page 34

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33
The comparable sales base and average weekly sales for 2002 and 2001 for domestic Company-owned
and domestic franchised restaurants consisted of the following:
Company
Franchise
Company
Franchise
Total domestic units (end of year)
585
2,000
601
1,988
Equivalent units
581
1,982
619
1,931
Comparable sales base units
550
1,764
551
1,559
Comparable sales base percentage
94.8%
89.0%
89.0%
80.7%
Average weekly sales - comparable units
14,409
$
13,122
$
14,296
$
13,554
$
Average weekly sales - other units
11,100
$
10,238
$
10,198
$
10,456
$
Average weekly sales - all units
14,236
$
12,805
$
13,844
$
12,957
$
Year Ended
December 29, 2002
Year Ended
December 30, 2001
Domestic franchise and development fees, including amounts recognized upon development cancellation,
were $1.7 million for 2002 compared to $2.9 million for 2001 as there were 76 domestic franchise unit
openings in 2002 as compared to 139 in 2001.
Domestic commissary and other sales decreased 2.8% to $431.3 million in 2002, from $443.6 million in
2001, primarily due to lower commissary sales from lower volumes and reduced prices charged for
certain commodities such as boxes and meats. In addition, there were lower equipment sales as a result of
fewer unit openings in 2002 as compared to 2001, partially offset by an increase in our print and
insurance services operations.
International revenues consist of the Papa John’s UK operations which are denominated in British
Pounds Sterling and converted to U.S. dollars (93.0% of total 2002 international revenues) and combined
revenues from operations in eight other international markets denominated in U.S. dollars. Total
international revenues were substantially flat in 2002 at $32.0 million as lower Company-owned
restaurant and commissary sales and development fees were offset by higher royalties due to an increased
number of international franchise units in 2002 as compared to 2001. Additionally, there was a $1.3
million increase in revenues from the exchange rate difference in 2002 as compared to 2001.
Costs and Expenses. The restaurant-operating margin for domestic Company-owned units was 20.9% in
2002 compared to 18.6% in 2001, consisting of the following differences:
• Cost of sales was 1.8% lower in 2002 due to lower prices for certain commodities such as boxes
and meats and a higher average sales price point.
• Salaries and benefits were 0.2% lower in 2002 due to the higher average sales price point,
partially offset by the impact of the across-the-board increase in base pay for general managers
and assistant managers implemented during the third quarter of 2002, and other general
compensation increases.
• Advertising and related costs were 0.4% ($513,000) higher in 2002 as compared to 2001.
• Occupancy costs were 0.2% lower in 2002 due primarily to lower utilities.
• Other operating expenses were 0.5% lower in 2002 primarily due to improved controls over
mileage reimbursement and lower training costs, partially offset by an increase in workers’
compensation insurance costs.