Papa Johns 2012 Annual Report Download - page 49

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43
The comparable sales base and average weekly sales for 2011 and 2010 for domestic Company-owned
and North America franchised restaurants consisted of the following:
Domestic
Company-
owned
North
America
Franchised
Domestic
Company-
owned
North
America
Franchised
Total domestic units (end of period) 598 2,463 591 2,346
Equivalent units 589 2,332 586 2,231
Comparable sales base units 581 2,135 577 2,074
Comparable sales base percentage 98.6% 91.6% 98.5% 93.0%
Average weekly sales - comparable units 17,248$ 14,459$ 16,599$ 14,057$
Average weekly sales - total non-comparable units* 11,218$ 10,708$ 11,562$ 12,177$
Average weekly sales - all units 17,164$ 14,142$ 16,521$ 13,924$
*Includes 183 traditional units in 2011 and 165 in 2010 and 134 non-traditional units in 2011 and 111 in 2010.
Year Ended
Year Ended
December 25, 2011
December 26, 2010
North America franchise and development fees were approximately $700,000 in 2011 or an increase of
approximately $100,000 from 2010. The increase was due to an increase in transfer and cancellation fees,
partially offset by a decrease in opening fees as there were a greater number of restaurants opening with
no fee in 2011 in accordance with our development incentive programs.
Domestic commissary sales increased 11.8% to $508.2 million in 2011 from $454.5 million in the prior
comparable period. The increase was primarily due to an increase in the prices of certain commodities,
most notably cheese, and an increase in sales volumes. Our commissaries charge a fixed dollar mark-up
on the cost of cheese. Cheese prices are based upon the block price, which increased to an average price
of $1.80 per pound in 2011 from the $1.59 BIBP block price in 2010.
Other sales decreased $1.0 million to $50.9 million in 2011. The decrease primarily resulted from a
decline in sales at Preferred, and a reduction in the online fee charged to our domestic franchisees.
International franchise sales were $320.0 million in 2011, compared to $258.8 million in 2010. Total
international revenues were $58.6 million for 2011 compared to $46.4 million in 2010, reflecting an
increase in the number of restaurants in addition to the 5.1% increase in comparable sales, calculated on a
constant dollar basis. These increases were partially offset by the prior year’s inclusion of revenues from
Company-owned restaurants located in the United Kingdom, which were sold in the third quarter of 2010.
Our PJUK operations represented 51% of international revenues in both 2011 and 2010.
Costs and Expenses. The restaurant operating margin at domestic Company-owned units was 19.0% in
2011 compared to 20.2% (19.9% excluding BIBP) in 2010. Excluding the impact of consolidating BIBP,
restaurant operating margin decreased 0.9% in 2011 as compared to the corresponding period in 2010,
consisting of the following differences:
Cost of sales were 1.7% higher as a percentage of sales in 2011 as compared to 2010 due to the
impact of higher commodities costs, principally cheese, wheat and meats.
Salaries and benefits were 0.4% lower as a percentage of sales in 2011 compared to 2010,
reflecting the benefit of increased sales.
Advertising and related costs as a percentage of sales were relatively flat year-over-year.
Occupancy costs and other operating costs, on a combined basis, as a percentage of sales, were
0.4% lower in 2011 reflecting the benefit of increased sales.