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 to drive growth and reinvestment.

• Emphasis on simplifying operations, returning to core pizza offerings, and balancing innovation with operational efficiency to drive frequency and customer loyalty.

• Leveraging data and technology to enhance personalization, improve digital experiences, and accelerate omnichannel capabilities.

• Amplifying marketing with a challenger brand mindset, targeting younger demographics, and balancing national and local advertising for greater impact.

• Building a high-performing, passionate leadership team and fostering a people-first, values-driven culture.

Financial and Operational Performance

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

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

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

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

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

Growth Opportunities and Market Strategy

• Significant infill and white space opportunities in North America, with a focus on fortressing strong markets and improving underperforming locations.

• Over 1,000 net new restaurants opened in the last seven years, with significant whitespace 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 deepening presence in nine core countries and high-potential markets, prioritizing quality development and market share.

• Focus on franchisee profitability, evolving the franchisee base, and accelerating unit development through both existing and new operators.