Papa Johns 2006 Annual Report Download - page 4

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1
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 and, in
certain international markets, dine-in and restaurant-based delivery restaurants under the trademark “Papa
John’s”. At December 31, 2006, the Company and its franchisees operated domestically in 49 states, the
District of Columbia and Puerto Rico and in 26 countries. 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”). In March 2006, the Company sold its Perfect
Pizza operations, consisting of the franchised units and related distribution operations. At December 31,
2006, there were 3,015 Papa John’s restaurants in operation, consisting of 588 Company-owned and
2,427 franchised restaurants.
Papa John’s has defined five reportable segments: domestic restaurants, domestic commissaries (Quality
Control Centers), domestic franchising, international operations and variable interest entities. See
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Note
22” of “Notes to Consolidated Financial Statements” for financial information about these segments for
the years ended December 31, 2006, December 25, 2005 and December 26, 2004.
All of our periodic, and current reports, filed 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, current reports on Form 8-K and any amendments to those reports.
Those documents are available through our website as soon as reasonably practicable after we
electronically file them 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 Center”) system, which delivers to individual restaurants twice weekly.
Internationally, the menu may be broader than in our domestic operations to meet local tastes and
customs.