Papa Johns 2015 Annual Report Download - page 5

Fast forward to today, and that lesson still stands. I recently came
across QSR magazine’s January issue, which included the Top
Fast Food Trends in 2016. The number one trend for this year is a
movement to “Real Food.” The good news is we’ve been devoted to
Real Food since 1984. Papa John’s was built on quality, which is why
we talk so openly about our ingredients. It’s also why we always say,
“Better Ingredients. Better Pizza.” This isn’t just our slogan – it’s a
way of life.
In pursuit of this goal, we’ve
committed over $100 million
a year to have the cleanest
and freshest ingredients we
can source for our pizzas.
This eff ort is already
bearing fruit. We have
one of the cleanest pizza
ingredient labels among
top national pizza brands,
which means we use relatively
few artifi cial ingredients. We’re also working overtime to eliminate
the few remaining ones that we do use. Last summer, Panera Bread**
announced its “No No List” of artifi cial colors, fl avors, sweeteners, and
preservatives it intends to remove from its menu by the end of 2016.
Papa John’s is ahead of the game; 57 of those ingredients are already
not found in Papa John’s traditional, superior-quality pizza.
We’re not slowing down, either. Papa John’s recently announced that
its grilled chicken pizza toppings and chicken poppers will consist
of poultry that is raised without human and animal antibiotics, and
that they are fed a 100% vegetarian diet. We intend to achieve this
goal by summer 2016. In addition, we also became the fi rst among
the top national pizza brands to announce our entire menu is now
free of artifi cial fl avors and synthetic colors. This includes all pizza
ingredients, pizza toppings, dessert items, and sauce selections. You
won’t fi nd fi llers in our meat toppings, or MSG, BHA, BHT, or partially
hydrogenated oils.
Our continued focus on quality not only delivers on our promise of
“Better Ingredients. Better Pizza.” but also ensures that we maintain
the taste that our customers desire. But we need to keep striving
to deliver the best. As consumers continue to expect greater
transparency from the food industry, we’re looking closely at our
labels to ensure that we’re staying true to our promise to constantly
improve. We believe we can continue to improve what’s in our pizzas
– without sacrifi cing the great taste that characterizes our traditional,
superior-quality Papa John’s pizza. That’s why we’re committed to
removing 14 more unwanted ingredients from our menu in 2016.
Quality Guarantee
Just prior to Super Bowl 50, we
announced a brand-new initiative for
our customers: A Quality Guarantee.
This means we guarantee that you’ll
love your Papa John’s pizza, but if
you don’t, you can tell us why and get
another one absolutely free. It’s that
simple. We’ve always been proud of
the quality of what we serve – with the
Quality Guarantee, we’re putting our
money where our mouth is. We believe
quality shouldn’t be a limited-time off er
– it’s our legacy.
Speaking of quality, it’s worth
mentioning again that Papa John’s earned the top spot in the 2015
American Customer Satisfaction Index. Specifi cally, we achieved the
highest rating in the pizza category for an unprecedented 14th time
in the past 16 years – and we also earned the highest rating across
all limited-service restaurant companies surveyed. We won’t rest on
our laurels, either. We’ll continue to strive for the highest customer
satisfaction, as shown by our new Quality Guarantee.
Adding Another Quality Ingredient
to our All-Star Lineup
In 2015, we continued to “Up our Game”
not only with “Better Ingredients. Better
Pizza.” but also with the addition of
another elite professional athlete as
a brand spokesperson: J.J. Watt.
J.J., like Peyton Manning, Paul George
and our other brand spokespeople,
shares my passion for constantly
improving, whether it’s pizza making
or playmaking.
As the 2015 NFL Defensive Player of
the Year and MVP runner-up,
In 2015, we continued to “Up our Game”
not only with “Better Ingredients. Better
Pizza.” but also with the addition of
another elite professional athlete as
J.J., like Peyton Manning, Paul George
and our other brand spokespeople,
improving, whether it’s pizza making
As the 2015 NFL Defensive Player of
2009
$2.28B
$1.50
$1.00
$0.50
$2.00
$2.50
$3.00
$4.00
$3.50
2010 2011 2012 2013 2014 2015
Global System Sales
$2.39B $2.57B
$2.85B $3.02B
$3.32B $3.49B
2009*
$0.50
$0.70
$0.90
$1.10
$1.30
$1.50
$1.70
$1.90
$2.10
$2.30
2010* 2011 2012 2013 2014 2015
Earnings Per Share
$0.69
$0.92
$1.08
$1.29
$1.55
$1.75
$2.09
LOVE YOUR PIZZA OR GET
ANOTHER ONE FREE!
*Earnings per share for 2009, 2010 and 2015 are presented on a non-GAAP basis for comparability purposes. See page 32 of this annual report for the GAAP to
non-GAAP reconciliation for 2015. See the Investor Relations section of our website which contains the GAAP to non-GAAP reconciliations for 2009 and 2010.
**Panera Bread is a registered trademark of Pumpernickel Associates, LLC.
J.J. Watt, Papa John’s
newest spokesperson.