Papa Johns 2015 Annual Report Download - page 51

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38
The comparable sales base and average weekly sales for 2015 and 2014 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) 707 2,681 686 2,654
Equivalent units 684 2,546 666 2,521
Comparable sales base units 667 2,351 646 2,307
Comparable sales base percentage 97.5% 92.3% 97.0% 91.5%
Average weekly sales - comparable units 21,461$ 16,510$ 20,451$ 16,031$
Average weekly sales - total non-comparable units* 13,773$ 10,716$ 14,389$ 10,588$
Average weekly sales - all units 21,274$ 16,066$ 20,271$ 15,570$
*Includes 129 traditional units in 2015 and 150 in 2014 and 228 non-traditional units in 2015 and 213 in 2014.
Year Ended Year Ended
December 27, 2015 December 28, 2014
North America franchise and development fees were approximately $1.0 million in 2015, an increase of
approximately $300,000 from 2014 revenues, primarily due to higher franchise renewal fees.
Domestic commissary sales decreased 2.2% to $615.6 million in 2015, from $629.5 million in the prior
year. The decrease was primarily due to a decrease in cheese prices, which was somewhat offset by an
increase in sales volumes. Pricing for cheese is based on a fixed dollar markup; when cheese prices
decrease, revenues will decrease with no overall impact on the related dollar margin.
Other sales decreased $9.5 million to $64.7 million in 2015 primarily due to lower FOCUS equipment
sales to franchisees. See the FOCUS System section above for additional information.
International royalties and franchise and development fees increased approximately $1.6 million
primarily due to a 14.6% increase in franchised units and a comparable sales increase of 7.3%, calculated
on a constant dollar basis. The negative impact of foreign currency exchange rates reduced our revenues
by approximately $2.7 million. International franchise sales were $592.7 million in 2015, compared to
$553.0 million in 2014. International franchise sales are not included in our consolidated statements of
income; however, our international royalty revenue is derived from these sales.
International restaurant and commissary sales increased approximately $700,000, or 0.9%, primarily due
to an increase in commissary revenues from increases in units and higher comparable sales. The increase
was partially offset by lower sales at China Company-owned restaurants due to the disposition of eleven
restaurants in 2014 and negative comparable sales. Additionally, sales were negatively impacted $4.8
million by foreign currency exchange rates.
Costs and Expenses. The restaurant operating margin at domestic Company-owned units was 20.1% in
2015, compared to 18.5% in 2014 with the following differences by income statement category:
• Cost of sales was 1.3% lower as a percentage of revenues in 2015 primarily due to lower
commodity costs, primarily cheese.
• Salaries and benefits were 0.7% higher as a percentage of sales in 2015, primarily due to higher
performance-based bonuses paid to general managers and minimum wage increases.
• Advertising and related costs as a percentage of revenues were 0.2% lower as a percentage of
sales in 2015 primarily due to the benefit of higher sales.