Papa John's International, Inc. has reported its financial results for the first quarter of 2025, ending March 30. The company saw total revenues increase by $4.4 million, reaching $518.3 million, a rise attributed mainly to an increase in commissary and advertising funds revenue. However, this was offset by a decline in sales from company-owned restaurants.
CEO Todd Penegor commented on the results: "We are pleased with our continued progress in the first quarter to advance our transformation as we execute against our five key priorities." He added that strategic investments in marketing and technology have shown early positive momentum.
The company's global system-wide restaurant sales grew by 1% to $1.22 billion, despite challenges such as lower North America comparable sales. Net income for the quarter was reported at $9.3 million, reflecting a decrease of $5.6 million compared to the same period last year due to increased general and administrative expenses.
Adjusted EBITDA fell by $10.9 million to $49.6 million due to higher G&A expenses related to marketing and loyalty investments, among other factors.
Earnings per share dropped from $0.44 in Q1 2024 to $0.27 in Q1 2025, with adjusted diluted earnings per share also decreasing from $0.67 to $0.36 over the same period.
Papa John's maintained its outlook for 2025, reiterating its annual guidance metrics and emphasizing the significance of adjusted EBITDA as a measure widely used by analysts and investors.
As of March 30, there were 6,019 Papa John's restaurants operating across 50 countries and territories worldwide.
Free cash flow improved significantly from an outflow of $1.1 million last year to an inflow of $19.1 million this quarter due to better working capital management and reduced capital expenditures.
The company declared a second-quarter dividend of $0.46 per common share following a first-quarter payout totaling $15.2 million.
Papa John's will host a conference call with analysts today at 8:00 a.m., which can be accessed through their website where a replay will also be available post-call.