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2
PART I
Item 1. Business
General
Papa John’s International, Inc. (referred to as the “Company”, “Papa John’s” or in the first person
notations of “we”, “us” and “our”) operates and franchises pizza delivery and carryout restaurants under
the trademark “Papa John’s”. At December 25, 2005, the Company and its franchisees operated
domestically in 49 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico and in 22
countries, and under the trademark “Perfect Pizza” in the United Kingdom. The first Company-owned
Papa John’s restaurant opened in 1985 and the first franchised restaurant opened in 1986. We acquired
Perfect Pizza Holdings Limited (referred to as “Perfect Pizza” and “Papa John’s UK”) in 1999 as part of
our plan to develop restaurants internationally (see Development). At December 25, 2005, there were
2,926 Papa John’s restaurants in operation, consisting of 504 Company-owned and 2,422 franchised
restaurants. Additionally, there were 112 franchised Perfect Pizza restaurants in operation.
As more fully described in Management’s Discussion and Analysis of Financial Condition and Results of
Operations, the Company recently developed a plan to sell its Perfect Pizza operations, consisting of the
franchised units and related distribution operations. The Company believes the sale of the Perfect Pizza
operations will be completed within the next 12 months.
All of our periodic report filings with the Securities and Exchange Commission (“SEC”) pursuant to
Section 13(a) or 15(d) of the Securities and Exchange Act of 1934, as amended, are available, free of
charge, through our web site located at www.papajohns.com, including our annual report on Form 10-K,
quarterly reports on Form 10-Q, and current reports on Form 8-K, and any amendments to those reports.
These reports are available through our website as soon as reasonably practicable after we electronically
file such reports or amendments with the SEC. Printed copies of such documents are also available free
of charge upon written request to Investor Relations, Papa John’s International, Inc., P.O. Box 99900,
Louisville, KY 40269-0900.
Strategy
Our goal is to build the strongest brand loyalty of all pizzerias internationally. The key elements of our
strategy include:
Menu. Domestic Papa John’s restaurants offer a menu of high-quality pizza along with side items,
including breadsticks, cheesesticks, chicken strips and wings, dessert pizza and canned or bottled soft
drinks. Papa John’s traditional crust pizza is prepared using fresh dough (never frozen). Papa John’s
pizzas are made from a proprietary blend of wheat flour, cheese made from 100% real mozzarella, fresh-
packed pizza sauce made from vine-ripened tomatoes (not from concentrate) and a proprietary mix of
savory spices, and a choice of high-quality meat (100% beef, pork and chicken with no fillers) and
vegetable toppings. Domestically, all ingredients and toppings can be purchased from our Quality
Control Center (“QC Centers”) system, which delivers to individual restaurants twice weekly. Each
traditional crust pizza offers a container of our special garlic sauce and a pepperoncini pepper, and each
thin crust pizza is served with a packet of special seasonings. In international markets, the menu mix
(toppings and side items) is adapted to local tastes.
We have offered a thin crust pizza since 1999. During 2005, we introduced Papa’s Perfect Pan, which
features a square, thick buttery-tasting crust made with olive oil, and a new zesty robusto pizza sauce