Papa Johns 2012 Annual Report Download - page 3

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• Earnings per diluted share of $2.58 for full-year 2012,
• North American comparable sales increase of 3.6%,
• International comparable sales increase of 7.1%.
• 280 net worldwide restaurant openings,
We delivered these strong results during a
year faced with a still tenuous global economy
and ever increasing competitive pressures.
Despite these challenges, Papa John’s has
been, and will continue to be, pragmatic in its
approach as we continue to build shareholder
value. Our solid financial footing, conservative
balance sheet and sound financial discipline
are buressed by our company’s strong
core values and an evolving culture where
collaboration, accountability and excellence
are expected and rewarded. As I introduced in
my leer last year, all of this supports the three
main pillars of the business that continue to
be vital to our long-term success: Quality,
Branding and Technology.
Quality is the core of Papa John’s. It is
something we are fanatical about and it is
something we will spare no expense to ensure.
“Beer Ingredients. Beer Pizza.” is not just
a slogan, it’s a promise of quality and is the
hallmark of our business. Quality is the
foundation with which:
• Our original hand-tossed dough is still
made fresh, never frozen.
• We continue to use all-natural, fresh-
packed tomato sauce not from
concentrate.
• Our cheese is still made from
100% mozzarella.
• We continue to use other superior-
quality ingredients, including baby
Papabella mushrooms and vegetables
fresh cut in our restaurants daily.
Quality also is woven throughout the fabric
of our Branding. We continue to partner
only with those who can help us tell our
“Beer Ingredients. Beer Pizza.” story to
wider audiences around the world. In 2012,
we completed the third year of our three-year
sponsorship with the NFL, with Papa John’s
the Official Pizza of the NFL and the Super
Bowl, and extended the agreement for the
long term. We also were able to enhance
our partnership by teaming up with Denver
Broncos quarterback Peyton Manning. Not
only did he appear in an advertising campaign
for us last fall that continued through this year’s
Super Bowl, he also became a franchisee,
partnering in 22 restaurants in the Denver
market. Going forward, we will continue to seek
out leading partners from various industries
around the world to partner with to help us
grow our brand.
We also continue to believe that a strong
Technology platform is critical to
our success. In 2012 we launched online
ordering in Canada, and made great strides in
developing and executing strategies to reach
more consumers through various social and
electronic media channels around the world.
We will continue to invest in technology to
position ourselves at the forefront of the
rapidly evolving technological world, to
meet consumer demands and position our
restaurants for optimum growth.
Looking forward, while there is still economic
and political uncertainty in many parts of the
world, Papa John’s is well-positioned to benefit
from a proven business model and growing
consumer demand for beer quality pizza.
Staying on offense, gives me confidence in our
ability to deliver high-quality growth through
gains in market share and margins.
With approximately 100,000 franchisees and
team members worldwide collaboratively
working toward the common objective of
growing Papa John’s around the world, I’m
excited for what the future holds for our brand.
Thank you for your continued support
and patronage.
John H. Schnaer
Founder, Chairman and
Chief Executive Officer
Note: The results for 2009 and 2010 are presented on a non-GAAP basis for comparability purposes. See the Investor Relations section of our website which contains the GAAP to non-GAAP reconciliations.