Papa John's revenues falls 15.7% to US$364 million

The pizza chain saw an 8.8% decrease in revenues for the past nine months.

Papa John’s Pizza reported their financial results for the third quarter ended last September 30 with a revenue decrease of 15.7% from US$432 million to US$ 364 million year-over-year.

This is said to be driven by lower comparable sales and refranchising of 62 company-owned restaurants in North America as well as short-term royalty reductions for their franchise assistance program.

Domestic company-owned restaurants, North America franchised restaurants, system-wide North America restaurants and system-wide international restaurants all saw a decline of 13.2%, 8.6%, 9.8% and 3.3% respectively in terms of comparable sales.

This resulted to their global restaurant sales taking a 6.6% fall compared to 4.4% last year.

“During the quarter, we took important actions resulting in improved consumer sentiment and North America comp sales that were slightly ahead of expectations,” Steve Ritchie, President and CEO of Papa John’s said.

“While the operating environment remains challenging, these early indicators combined with our strong cash flow give us confidence in the consumer initiatives underway across the Company.”