Papa John’s International (PZZA) Investor Update summary

Strategic priorities and brand transformation

• Focus on delivering great experiences in every restaurant, emphasizing quality, operational excellence, and a strong restaurant economic model.

• Leaning into core strengths, amplifying the brand promise, and leveraging data and technology to enhance customer connection, loyalty, and operational efficiency.

• Simplification of menu and operations to improve consistency and frequency, balancing core offerings with innovation.

• Amplifying marketing with a challenger mindset, targeting younger generations, and leveraging digital and social channels for greater engagement.

• Building a leadership team with industry expertise and a collaborative approach to franchisee and investor relations.

Financial and operational performance

• Global systemwide sales reached $5B with total revenues of $2.1B for the TTM ending 9/29/24.

• North American franchisee and commissary segments represent 75% of adjusted profits, showing steady growth and resilience.

• Domestic average unit sales have grown at a 7.5% CAGR over the last four years, with future build costs anticipated at ~$500K.

• Over 75% of operating income is driven by consistent revenue sources, with a diversified segment mix.

• Strong balance sheet supports growth investments, with $850M+ returned to shareholders via dividends and buybacks over five years.

Growth opportunities and franchise strategy

• Over 1,000 net new restaurants opened in the last seven years, with significant infill and white space opportunities for further domestic and international expansion.

• Leading market share in 11 of the top 15 U.S. markets, with targeted strategies for key international regions.

• International strategy centers on a narrow and deep focus in nine core countries, aiming for quality development and system-wide sales growth.

• Franchise base is evolving, with efforts to attract growth-minded operators, support local marketing, and encourage reinvestment in reimaging and new builds.

• Build costs are trending around $500,000, with under four-year payback periods, and ongoing efforts to optimize costs and stimulate franchisee investment.