Papa Johns 2015 Annual Report Download - page 56

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43
The comparable sales base and average weekly sales for 2014 and 2013 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) 686 2,654 665 2,621
Equivalent units 666 2,521 649 2,492
Comparable sales base units 646 2,307 633 2,263
Comparable sales base percentage 97.0% 91.5% 97.5% 90.8%
Average weekly sales - comparable units 20,451$ 16,031$ 18,995$ 15,171$
Average weekly sales - total non-comparable units* 14,389$ 10,588$ 12,167$ 10,092$
Average weekly sales - all units 20,271$ 15,570$ 18,832$ 14,704$
*Includes 150 traditional units in 2014 and 185 in 2013 and 213 non-traditional units in 2014 and 184 in 2013.
Year Ended Year Ended
December 28, 2014 December 29, 2013
North America franchise and development fees were approximately $700,000 in 2014, a decrease of
approximately $500,000 from 2013 primarily due to lower franchise renewal fees.
Domestic commissary sales increased 8.7% to $629.5 million in 2014, from $578.9 million in the prior
year. As previously discussed, the increase was primarily due to increases in the prices of certain
commodities (primarily cheese and meats), higher sales volumes and higher overall margins. 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 of $2.12 per pound in 2014 from $1.76 per pound in 2013.
Other sales increased $20.9 million to $74.2 million in 2014 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 approximately $3.8 million in 2014
primarily due to a 17.5% increase in franchised units and a comparable sales increase of 7.8%, calculated
on a constant dollar basis. International franchise restaurant sales were $553.0 million in 2014, compared
to $460.0 million in 2013. International franchise restaurant 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 $10.1 million, or 15.1%, in 2014 primarily due to
an increase in commissary revenues from increases in units and higher comparable sales, including the
United Kingdom. As previously noted, the 2013 year includes an additional month of revenues at our
China Company-owned operations in the amount of $2.1 million.
Costs and Expenses. The restaurant operating margin at domestic Company-owned units was 18.5% in
both 2014 and 2013 with the following differences by income statement category:
• Cost of sales was 0.4% higher as a percentage of revenues in 2014 primarily due to higher
commodity costs, primarily cheese and meats, somewhat offset by a higher ticket average.
• Salaries and benefits were 0.4% lower as a percentage of sales in 2014, primarily due to the
benefit of higher sales.
• Advertising and related costs as a percentage of revenues were 0.3% lower as a percentage of
sales in 2014, primarily due to the benefit of higher sales.