Profile: Papa John's International Inc (PZZA.OQ)
17 Feb 2017
Papa John's International, Inc. (Papa John's), incorporated on July 25, 1991, operates and franchises pizza delivery and carryout restaurants. The Company operates these restaurants in international markets, dine-in and delivery restaurants under the trademark Papa John's. Papa John's operates in five segments: domestic Company-owned restaurants, domestic commissaries (Quality Control (QC) Centers), North America franchising, international operations, and all other business units. North America is defined as the United States and Canada. Domestic is defined as the contiguous United States. International franchisees are defined as all franchise operations outside of the United States and Canada. The Company offers pizza along with side items, including breadsticks, cheesesticks, chicken poppers and wings, dessert items and canned or bottled beverages. Papa John's traditional crust pizza is prepared using dough (never frozen). Papa John's pizzas are made from a blend of wheat flour, cheese made from mozzarella, pizza sauce made from vine-ripened tomatoes (not from concentrate) and a mix of savory spices, and a choice of meat and vegetable toppings. Its traditional crust pizza is delivered with a container of its special garlic sauce and a pepperoncini pepper. In addition to its dough traditional crust pizza, the Company offers a thin crust pizza, which is a par-baked product produced by a third-party vendor. Each thin crust pizza is served with a packet of special seasonings and a pepperoncini pepper.
The domestic Company-owned restaurant segment consists of the operations of all domestic Company-owned restaurants, and retail sales of pizza and side items. The domestic commissary segment consists of the operations of its regional dough production and product distribution centers, and the sale and distribution of food and paper products to domestic Company-owned and franchised restaurants. The North America franchising segment consists of its franchise sales and support activities, and sales of franchise and development rights, and collection of royalties from its franchisees located in the United States and Canada. The international operations segment principally consists of its Company-owned restaurants in China and distribution sales to franchised Papa John's restaurants located in the United Kingdom, Mexico and China, and its franchise sales and support activities, which derive revenues from sales of franchise and development rights, and the collection of royalties from its international franchisees.
The Company has over 4,140 franchised Papa John's restaurants operating in over 50 states and over 40 countries and territories. The Company's domestic QC Centers system comprises over 10 full-service regional production and distribution centers, supplies pizza dough, food products, paper products, smallwares and cleaning supplies twice weekly to each restaurant throughout the contiguous United States. The Company owns full-service international QC Centers in the United Kingdom, Mexico City, Mexico and Beijing, China. Its other international QC Centers are licensed to franchisees or non-franchisee third parties and are located in the markets where the Company's franchisees have restaurants. Within its domestic QC Center system, products are distributed to restaurants by leased refrigerated trucks operated by it. The Company's local restaurant-level marketing programs target consumers within the delivery area of each restaurant. The Company provides both Company-owned and franchised restaurants with pre-approved marketing materials and catalogs for the purchase of uniforms and promotional items. It also provides direct marketing services to Company-owned and franchised restaurants using customer information gathered by its point-of-sale technology. In addition, the Company provides database tools, templates and training for operators to facilitate local e-mail marketing and text messaging through its approved tools.
The Company's digital ordering platform allows customers to order online. Its mobile ordering iPhone and Android applications support payment options, such as Google Wallet and PayShare, a digital solution that lets customers immediately split their pizza bill. Its Papa Rewards program is an e-commerce customer loyalty program. The Company's domestic restaurants offer customers the opportunity to purchase a reloadable gift card referred to as the Papa Card. The Papa Card is sold as either a plastic gift card purchased in its restaurants, or an online digital card. It sells Papa Cards to consumers on its Website and through third-party retailers. The Company also sells cards in bulk to business entities and organizations. The Company focuses on customers living or working within a small radius of a Papa John's restaurant.
Papa John's International Inc
2002 Papa Johns Blvd
LOUISVILLE KY 40299-3393