Papa Johns 2007 Annual Report Download - page 4

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As I write this letter to you, we find
ourselves in an economic climate marked
by much uncertainty. Pointing to increasing
commodity costs, rising oil and fuel prices,
minimum wage increases and a slumping
housing market, many have predicted an
economic recession on the horizon. While
many have a bearish outlook on the months
ahead, I remain optimistic that we will
weather any economic storm.
Part of my optimism is fueled by the satisfying results our
company achieved last year despite a sluggish economy and
more aggressive tactics from our primary competitors. It also
stems from a continued focus on our sound business model.
In my letter last year, I stated our commitment to focus on
quality and customer service, grow the brand domestically
and internationally, and compete aggressively through the
innovation of products and marketing. at focus enabled
us to achieve several notable accomplishments in 2007,
including:
We were the only national pizza company to report ฀
positive domestic comparable sales in 2007. On top of
positive 3.1% in 2006, and positive 5.1% in 2005, I am
very proud of our domestic system for running 0.4%
positive comps in 2007.
We grew international sales by 28.1% in 2007.฀
We grew earnings per share by 18.6%, excluding the ฀
results of our cheese purchasing entity and certain other
items that had a positive impact on 2007.
For any franchising business, unit growth is the fuel that
fires the engine. In Papa John’s case, we made great strides in
expanding our portfolio of restaurants in 2007. In 2007, we
opened 193 net new restaurants and ended the year with 3,208
restaurants in all 50 states and 28 countries. is included a
record 90 new restaurants in the international arena, which
we continue to see as our primary source of long-term growth,
including our 75th in China and first in Egypt.
Also, in 2007, we were able to reach more consumers than
ever through our continued use of innovative marketing,
product offerings, and industry-leading technology. Some
highlights include:
We were the first national pizza chain to offer ordering ฀
via text messaging, at 4PAPA (47272).
We continued our successful pizza and entertainment ฀
strategy through a terrific partnership with Sony
Pictures Home Entertainment in conjunction with the
release of Spider-Man 3 on DVD.
We sponsored the second annual Papajohns.com Bowl, ฀
which grew in both ratings and attendance and was the
highest-rated college bowl game on ESPN2 this season.
Our stated strategy from a year ago remains unchanged. We
will continue to focus on quality, growing the brand globally
and competing aggressively. It has proven the right course in
a challenging economic time and has the opportunity to be
even more successful as the economy rebounds.
I thank each of you for your support, and most of all our
customers for their business. With an ongoing commitment
and focus on our strategy and business model, I am
confident in Papa John’s ability to grow and prosper in the
years ahead.
Nigel Travis
President and Chief Executive Officer
Dear Shareholders, Fr anchisees
and Team Members:
“Our stated strategy from a year ago remains unchanged. We will continue to focus
on quality, growing the brand globally, and competing aggressively.”