Papa John's International, Inc. · NASDAQ:PZZA
Papa John's International — Investor Presentation (March 2025)
32 slides from Papa John's International's investor presentation, Mar 12, 2025
Slide 1: Investor Presentation
Ingredients, Getter Piz INVESTOR Presentation
Slide 2: Important Disclosures: Forward-Looking Statements
Ml IMPORTANT DISCLOSURES Forward-Looking Statements Certain matters discussed in this presentation that are not statements of historical fact constitute forward-looking statements within the meaning of the federal securities laws. Generally, the use of words such as “expect,” “intend,” “estimate,” “
Slide 3: Important Disclosures: Industry, Market and Non-GAAP Information
Ml IMPORTANT DISCLOSURES Industry and Market Information Statements in this presentation concerning our industry and the markets in which we operate, including our general expectations and competitive position, business opportunity and market size, growth and share, are based on information from ind
Slide 4: Key Focus Areas
MH KEY FOCUS AREAS Our #1 priority is to for our customers and team members in our restaurants - ensuring the Focusing on our core strength of crafting high-quality, traditional pizza to consistently meet and exceed customer expectations and investing to amplify our brand promise Building industry-s
Slide 5: Experienced Management Team
M8 EXPERIENCED MANAGEMENT TEAM JENNA BROMBERG Chief Marketing Officer TODD PENEGOR A President and Chief Executive Officer RAVI THANAWALA Chief Financial Officer and Executive Vice President, International JOE SIEVE ELIAS REYNA KURT MILBURN Chief Restaurant and Chief People and Chief Supply Chain De
Slide 6: Our Values
Our Values People First Innovate to Win Everyone Belongs Have Fun Do the Right Thing
Slide 7: Papa Johns Today
MZ PAPA JOHNS TODAY Nasdaq trading began Restaurants* Pizzas sold each year * As of year ended 12/29/2024 Franchise & corporate team members* Countries served* Global systemwide sales* -SSB C1 Domestic Compan ned restaurants OO North America franchising Segment revenues* 40% Bl North America commiss
Slide 8: Our Brand Is Strong
IS STRONG
Slide 9: Our Values-Driven Culture Is Thriving
America’s Most Responsible Companies 2025 Mi OUR VALUES-DRIVEN CULTURE IS THRIVING Passion for Communities 300+ organizations supported through the Papa Johns Foundation Reached 6.8 M meals toward our goal of donating 10M meals to those in need hy 2027 600+ team members have accessed our Dough & Deg
Slide 10: Our Footprint Has Grown
OUR FOOTPRINT HAS GROWN United Kingdom 457 North America EMEA LATAM 748 PAPAJOHNS: As of year ended 12/29/2024 * Excludes suspended restaurants previously disclosed in Q12022
Slide 11: Leading Position in Top Markets
LEADING POSITION IN 11 OF OUR TOP 15 MARKETS 1 T restaurant Density 300+ einen orlando . Represents Papa Johns market share ranking Miami Our geographic strength brings significant opportunity for strategic domestic expansion. PAPAJOHNS: source: Restaurant Trends QSR MarketSHARE Report MY2024 as of
Slide 12: Our Recipe for Profitable Growth
MH OUR RECIPE FOR PROFITABLE GROWTH Focus on Core Product & ) ge § Innovation “27 < Franchisee Transform é BAN >) Invest in International “<2 Profitability >) technology GP) Differentiate Evolve (<)>) g oy) KOS * <> Customer Experience Franchisee Base <-”
Slide 13: Focus on Core Product & Innovation
FOCUS ON CORE PRODUCT & INNOVATION DRIVING PREMIUM-QUALITY DISTINCTION The Foundation of Our Success Being the hest pizza makers will he supported by three primary workstreams: Consumer Perception Assess current perception of Papa Johns to determine appropriate level of differentiation to feature Br
Slide 14: Amplify Marketing
AMPLIFY MARKETING WINNING CUSTOMERS WITH A FOCUS ON QUALITY AND VALUE QUALITY EMPHASIS VALUE PERCEPTION Best pizza craftsmanship: Across the men Emphasize value propositions — from Papa Pairings to Shaq-a-Roni Emphasize bringing the freshest ingredients to every pizza order Our approach CHALLENGER B
Slide 15: Invest in Technology
INVEST IN TECHNOLOGY CREATING A SMOOTH AND REPEATABLE CUSTOMER EXPERIENCE Agili Boost agility, service and husiness potential INITIATIVES: = Simplify products, operations and processes » Evolve to an omnichannel experience with product team mentality PAPAJOHNs Intelligence: Resilience: Further devel
Slide 16: Differentiate Customer Experience
DIFFERENTIATE CUSTOMER EXPERIENCE ENHANCING CUSTOMERS’ DIGITAL EXPERIENCE Improving user interaction with Papa Rewards Program Update: Earning revitalized app and redesigned website Papa Dough’ faster and more often = Q3 Brand Health results showing = Reward threshold reduced from 75 increase in cus
Slide 17: Evolve Franchisee Base
EVOLVE FRANCHISEE BASE OPPORTUNITIES TO ACCELERATE DOMESTIC DEVELOPMENT Domestic opportunities exist to utilize our existing infrastructure and create sustainable unit growth EXISTING CORPORATE NEW FRANCHISEES: DEVELOPMENT: FRANCHISEES: Identify and focus on Refranchise select New operators bring ex
Slide 18: Transform International
TRANSFORM INTERNATIONAL NARROW AND DEEP FOCUS ON MOST IMPACTFUL MARKETS GOAL: Target higher average unit volumes and greater penetration of key regions Refocus Grow UK, China Korea, Spain Re-establish a Drive long-term sustainable growth in well- established markets with a solid foundation operating
Slide 19: Financial
NE = FINANCIAL et
Slide 20: Revenue and Operating Income Breakdown
REVENUE AND OPERATING INCOME BREAKDOWN Segment revenues* Segment Adj. operating income* We have a solid operating income base with more than 75% driven by consistent revenue sources. @ Domestic Company- North America North America International @Allother owned restaurants franchising commissaries “A
Slide 21: Sharpening Pricing to Improve Value Perception and Frequency
SHARPENING PRICING TO IMPROVE VALUE PERCEPTION AND FREQUENCY Sales hy Pricing Strategy* Orders hy Fulfillment Channel* National promotion drives value perception to win the hearts and minds of our customers, and we optimize margin by serving their needs through all fulfillment channels. National Ml
Slide 22: Outstanding Debt & Leverage; Total Liquidity
: 7 Outstanding Debt & Leverage* $in millions 3.5x 32x 24x te 2.6x Se $764 $747 $605 $490 $370 2019 2020 2021 2022 2023 2024 —®- Gross Leverage Ill Debt Level ** Defined as Cash and cash equivalents + Revolver availability * Leverage calculation includes EBITDA adjustments allowed by the respective
Slide 23: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION PAPAJOHNS: Uses of Cash $376 $in millions $345 $258 $210 $133 $81 $58 EI at 2020 2021 2022 2023 2024 Micapex "Dividends Mi Buybacks ‘ll Preferred Repurchase We strive to strike the right balance hetween investing in the business and returning capital to shareholders, w
Slide 24: Driving Increased Long-Term Shareholder Value
DRIVING INCREASED LONG-TERM SHAREHOLDER VALUE PAPAJOHNS: Investing in Growth = Invest in strategic initiatives generating positive cash flow = Prudently invest in growth opportunities and strategic partnerships Maintaining a Strong Balance Sheet = Use of free cash flow to pay down debt, reduce lever
Slide 25: Key Focus Areas
MH KEY FOCUS AREAS Our #1 priority is to for our customers and team members in our restaurants - ensuring the Focusing on our core strength of crafting high-quality, traditional pizza to consistently meet and exceed customer expectations and investing to amplify our brand promise Building industry-s
Slide 26: Better Ingredients. Better Pizza.
PAPAJOHNs: Better Ingredients Getter Pizza ~< 2 = uu oO o. <x
Slide 27: 2024 Consolidated Income Statement by Quarter
In thou unaudited Revenues Company-owned restaurant sales Franchise royalties and fees Commissary revenues Other revenues Advertising funds revenue Total revenues Costs and expenses Cost of sales General and administrative expenses Depreciation and amortization Advertising funds expense Total costs
Slide 28: 2024 Segment Results by Quarter (Q1 & Q2)
2024 SEGMENT RESULTS BY QUARTER (Q1 & Q2) In thou Domestic Company North America North America owned restaurants franchising commissaries International First Quarter ended March 31, 2024 Revenues from external customers $ 176224 $ 35,697 $ 203,287 $ 46,673 Intersegment revenues - 1,049 49,267 - Reve
Slide 29: 2024 Segment Results by Quarter (Q3 & Q4)
2024 SEGMENT RESULTS BY QUARTER (Q3 & Q4) s, unaudited North America North America owned restaurants franchising commi International Third Quarter ended September 29, 2024 Revenues from external customers $ 168,672 $ 33,831 $ 210,389 $ 39,098 Intersegment revenues = ion 52,063 = Revenues $ 168,672 _
Slide 30: Fiscal Year 2024 Segment Results
FISCAL YEAR 2024 SEGMENT RESULTS PAPAJOHNS: In thousands, unaudited s = North America North America franchising commissarie International Fiscal Year ended December 29, 2024 Revenues from external customers $ 692,736 8 $ 139,091 $ 831774 $ 174,054 Intersegment revenues 5 205384 Revenues 692,736 1432
Slide 31: 2024 Supplemental Information - All Other
2024 SUPPLEMENTAL INFORMATION - ALL OTHER* In thousands, unaudited ALL OTHER* Revenues from external customers Intersegment revenues Revenues Costs and expenses Cost of sales General and administrative expenses Depreciation and amortization Advertising funds expense Total costs and expenses Operatin
Slide 32: Reconciliation of GAAP Operating Income to Non-GAAP Adjusted Operating Income
RECONCILIATION OF CONSOLIDATED GAAP OPERATING INCOME TO NON-GAAP ADJUSTED OPERATING INCOME ds, unaudited Three Months ended Year ended Sept 30, December 29, Operating income $ $ 28,226 $ 65229 $ 29531 $ 156,704 Gain on sale of QC Center properties - > (41,289) = (41,289) International restructuring
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