Papa John's Reports Fourth Quarter and Full-Year 2008 Earnings

Highlights

• Fourth quarter earnings per diluted share of $0.46 in 2008 vs. $0.27 in 2007 and full year earnings per diluted share of $1.30 in 2008 vs. $1.09 in 2007

• Comparable fourth quarter earnings per diluted share, excluding the consolidation of BIBP, the finalization of certain income tax issues and restaurant closure, impairment and disposition losses, were $0.48 in 2008 vs. $0.54 in 2007, a decrease of 11.1%

• Comparable full-year earnings per diluted share, excluding the items indicated above, were $1.68 in 2008 vs. $1.70 in 2007, a decrease of 1.2%

• Domestic system-wide comparable sales decrease of 2.0% for the quarter and an increase of 0.9% for the year

• 63 net Papa John's worldwide unit openings during the quarter and 172 during the year

• Earnings guidance for 2009 increased to a range of $1.36 to $1.44 per diluted share, excluding the impact of consolidating BIBP

Papa John's International, Inc. (NASDAQ: PZZA) today announced revenues of $279.6 million for the fourth quarter of 2008, representing a decrease of 1.5% from revenues of $283.9 million for the same period in 2007. Net income for the fourth quarter of 2008 was $12.8 million, or $0.46 per diluted share (including after-tax income of $600,000, or $0.02 per diluted share, from the consolidation of the results of the franchisee-owned cheese purchasing company, BIBP Commodities, Inc. ('BIBP'), a variable interest entity, and a gain of $1.2 million, or $0.04 per diluted share, from the finalization of certain income tax issues), compared to 2007 fourth quarter net income of $7.7 million, or $0.27 per diluted share (including a net loss of approximately $8.0 million, or $0.28 per diluted share, from the consolidation of BIBP and a gain of $1.0 million, or $0.03 per diluted share, from the finalization of certain income tax issues). The fourth-quarter results include pre-tax restaurant closure, impairment and disposition losses of $3.7 million in 2008 and $1.3 million in 2007 ($2.2 million on an after-tax basis, or $0.08 per diluted share in 2008 and $850,000 on an after-tax basis, or $0.02 per diluted share in 2007).

Consolidated revenues for 2008 were $1.13 billion, representing an increase of 6.4% from revenues of $1.06 billion for the same period in 2007. Net income for 2008 was $36.8 million, or $1.30 per diluted share (including a net loss of $6.9 million, or $0.24 per diluted share, from the consolidation of BIBP and a gain of $1.7 million or $0.06 per diluted share, from the previously mentioned finalization of certain income tax issues), compared to 2007 net income of $32.7 million, or $1.09 per diluted share (including a net loss of $20.5 million, or $0.68 per diluted share, from the consolidation of BIBP and a gain of $3.4 million, or $0.11 per diluted share, from the finalization of certain income tax issues). The full-year results for 2008 and 2007 include losses of $8.8 million and $1.8 million, respectively, associated with restaurant closure, impairment and disposition losses ($5.5 million on an after-tax basis, or $0.20 per diluted share in 2008 and $1.2 million on an after-tax basis, or $0.04 per diluted share in 2007).

Headquartered in Louisville, Kentucky, Papa John's International, Inc. (NASDAQ: PZZA) is the world's third largest pizza company.


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