Papa Johns 2011 Annual Report Download - page 6

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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”. The first Company-owned Papa John’s restaurant opened in 1985 and the first franchised
restaurant opened in 1986. At December 25, 2011, there were 3,883 Papa John’s restaurants in operation,
consisting of 628 Company-owned and 3,255 franchised restaurants operating domestically in all 50
states, the District of Columbia and Puerto Rico and in 33 countries. Our Company-owned restaurants
include 128 restaurants operated under two joint venture arrangements. Under the first arrangement, we
own 70% of an entity operating 52 Papa John’s restaurants located in Virginia and Maryland. Under the
second arrangement, we own 51% of an entity operating 76 Papa John’s restaurants located in Texas. We
also own and operate restaurants in Beijing and North China (30 units at December 25, 2011).
Papa John’s has defined six reportable segments: domestic Company-owned restaurants, domestic
commissaries (Quality Control Centers), North America franchising, international operations, variable
interest entities (“VIEs”) and “all other” business units. Beginning in fiscal 2011, we realigned
management responsibility for Hawaii, Alaska and Canada from international to domestic operations in
order to better leverage existing infrastructure and systems. We renamed our domestic franchised segment
“North America franchising”. Throughout this report we use “domestic” when referring to the contiguous
United States. See “Management’s Discussion and Analysis of Financial Condition and Results of
Operations” and “Note 19” of “Notes to Consolidated Financial Statements” for financial information
about these segments for the fiscal years ended December 25, 2011, December 26, 2010 and December
27, 2009.
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 website 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. We also make available free of charge on our website our
Corporate Governance Guidelines; Board Committee Charters; and our Code of Ethics, which applies to
Papa John's directors, officers and employees. 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. You may read and copy any materials filed with the SEC at the SEC’s Public
Reference Room at 100 F Street, NE, Washington, DC 20549. You may obtain information on the
operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. This information is also
available at www.sec.gov. The references to these website addresses do not constitute incorporation by
reference of the information contained on the websites, which should not be considered part of this
document.
Strategy
Our goal is to build the strongest brand loyalty of all pizza restaurants. The key elements of our strategy
include:
High Quality Menu Offerings. Domestic Papa John’s restaurants offer a menu of high-quality pizza along
with side items, including breadsticks, cheesesticks, chicken strips and wings, dessert items and canned or