Papa Johns 2014 Annual Report Download - page 47

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34
Results of Operations
2014 Compared to 2013
Discussion of Revenues. Consolidated revenues increased $159.1 million, or 11.1%, to $1.60 billion in
2014, compared to $1.44 billion in 2013. Revenues are summarized in the following table on a reporting
segment basis.
Increase Increase
Dec. 28, Dec. 29, (decrease) (decrease)
(In thousands)
2014 2013 $ %
North America Revenues:
Domestic Company-owned restaurant sales 701,854$ 635,317$ 66,537$ 10.5%
Franchise royalties 89,443 81,692 7,751 9.5%
Franchise and development fees 726 1,181 (455) -38.5%
Domestic commissary sales 629,492 578,870 50,622 8.7%
Other sales 74,179 53,322 20,857 39.1%
International Revenues:
Royalties and franchise and development fees 25,730 21,979 3,751 17.1%
Restaurant and commissary sales 76,725 66,661 10,064 15.1%
Total Revenues 1,598,149$ 1,439,022$ 159,127$ 11.1%
Year Ended
The increase in revenues in 2014 compared to 2013 was primarily due to the following:
Domestic Company-owned restaurant sales increased $66.5 million, or 10.5% primarily due to an
8.2% increase in comparable sales and a 2.6% increase in equivalent units. “Equivalent units”
represents the number of restaurants open at the beginning of a given period, adjusted for
restaurants opened, closed, acquired or sold during the period on a weighted average basis.
North America franchise royalties increased $7.8 million, or 9.5% primarily due to a 6.2%
increase in comparable sales and a reduced level of performance-based royalty incentives.
Domestic commissary sales increased $50.6 million, or 8.7%, primarily due to increases in the
prices of certain commodities (primarily cheese and meats), higher sales volumes, and higher
overall margins.
Other sales increased $20.9 million, or 39.1%, primarily due to FOCUS equipment sales to
franchisees. See the FOCUS System section above for additional information.
International royalties and franchise and development fees increased $3.8 million or 17.1%
primarily due to an increase in the number of restaurants and a 7.8% increase in comparable sales,
calculated on a constant dollar basis.
International restaurant and commissary sales increased $10.1 million, or 15.1%, primarily due to
an increase in commissary revenues, particularly in the United Kingdom, with increases in units
and higher comparable sales. This was somewhat offset by the 2013 year including an additional
month of revenues at our China Company-owned operations as we changed the reporting cycle in
the fourth quarter of 2013 to no longer consolidate the results one month in arrears. The impact of
this change resulted in incremental revenues of $2.1 million in 2013.