Restaurant franchise company Papa John’s International (PZZA) reported a 6.3% jump in its revenue for the final quarter of 2017 to $467.6 million, while income attributable to the company plunged 12.6% to $28.5 million. Diluted earnings declined 7.9% to $0.81 per share from prior year period.
The results were negatively impacted by decrease in company-owned restaurant sales due to negative comparable sales of 4.7% and the impact of refranchising 42 domestic company-owned restaurants.
As for system-wide North America comparable sales, the company reported a decline of 3.9% for the quarter and an increase of 0.1% for full year 2017.
Outlook
For 2018, Papa John expects diluted earnings per share in the range of $2.40 to $2.60 compared to $2.83 reported in fiscal 2017.
Comparable sales in North America is expected to be in the range of negative 3% to flat, while international comparable sales is expected between 3% and 5%.
The company forecasts capital expenditures to come in the range of $45 million to $55 million for 2018.