Papa John’s International Inc. (PZZA) reported that its third-quarter net income attributable to common shareholders was $11.46 million or $0.35 per share compared to a loss of $3.09 million or $0.10 per share in the prior year.
Net income attributable to the company rose to $15.71 million from $385 thousand in the previous year.
Consolidated revenues were $472.9 million up 17.1% from last year.
Excluding the impact of refranchising 46 domestic restaurants in 2019, consolidated revenues increased approximately $77.2 million, or 19.6%, primarily due to strong comparable sales results for North America restaurants, including 18.2% for company-owned restaurants and 25.6% for franchised restaurants, resulting in higher company-owned restaurant revenues, franchise royalties and commissary sales.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.32 per share and revenues of $466.15 million for the quarter. Analysts’ estimates typically exclude special items.
The company’s board approved a new share repurchase program for up to $75 million of the company’s common stock, effective through December 31, 2021.
The company noted that the opening of the new Atlanta location and related organizational changes are expected to be completed by the summer of 2021. Affected employees who do not relocate to Atlanta have been offered a separation package.
As a result, the company expects to incur certain one-time corporate reorganization costs of approximately $15 million to $20 million related to employee severance and transition, recruitment and relocation and other third-party costs through 2021. Of that amount, the company expects to incur costs of about $4 million to $5 million in the fourth quarter of 2020.
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