Papa John's Announces Third Quarter Earnings

Net income for the third quarter of 2009 was $11.7 million, or $0.42 per diluted share (including after-tax income of $3.2 million, or $0.12 per diluted share, from the consolidation of the results of the franchisee-owned cheese purchasing company, BIBP Commodities, Inc. ('BIBP'), a variable interest entity), compared to 2008 third quarter net income of $7.7 million, or $0.28 per diluted share (including after-tax income of approximately $1.8 million, or $0.07 per diluted share, from the consolidation of BIBP, a gain of $500,000, or $0.02 per diluted share, from the finalization of certain income tax issues and an after-tax charge of $2.4 million, or $0.09 per diluted share, related to restaurant impairment and disposition losses).

Revenues were $825.6 million for the nine months ended September 27, 2009, representing a decrease of 3.1% from revenues of $852.4 million for the same period in 2008. Net income for the nine months ended September 27, 2009 was $43.8 million, or $1.57 per diluted share (including after-tax income of $13.3 million, or $0.48 per diluted share, from the consolidation of BIBP), compared to net income of $24.0 million, or $0.84 per diluted share, for the comparable period of 2008 (including a net loss of $7.4 million, or $0.27 per diluted share, from the consolidation of BIBP, a gain of $500,000 or $0.02 per diluted share, from the finalization of certain income tax issues and an after-tax charge of $3.2 million, or $0.11 per diluted share, related to restaurant impairment and disposition losses).

'We are pleased with our third quarter results, particularly in view of the challenging pizza category and continued difficult economy in which we are operating,' said Papa John's founder, chairman and chief executive officer, John Schnatter. 'The investments we have made in our system over the last 12 months continue to pay dividends for our brand, including in the areas of positive transaction momentum, market share gains and restaurant profitability. Most importantly, the consumer continues to endorse our focus on delivering a superior-quality pizza as evidenced by very strong product quality and service consumer measures during the quarter.'

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