Papa John's International Inc. (PZZA) plans to scale back some financial support its been offering franchisees to make it through the recession, potentially providing a boost to earnings.

"It would be fair to assume that it would be quite a bit less," Papa John's founder and Chief Executive John Schnatter said Wednesday on an earnings call.

Papa John's has been helping keep some franchisees afloat over the last year by deferring or waiving royalty payments and cutting fees for online ordering, while also putting more money toward national advertising campaigns. Such moves have helped prevent some stores from closing, as Papa John's tries to keep from closing fewer stores than top competitors Domino's Pizza Inc. (DPZ) and Yum Brands Inc.'s (YUM) Pizza Hut.

Various initiatives cost the company $2.2 million in the second-quarter, up from just $75,000 last year.

But with cheese costs plunging, Papa John's profits are gaining, both at its corporate stores and for its franchisees, reducing the need for further support down the road.

In recent trading, Papa John's shares rose 8% to $27.50, and are up almost 50% this year.

Papa John's on Tuesday reported second-quarter earnings, excluding items, of $10 million, or 36 cents a share, compared to $11.7 million, or 41 cents a year earlier. Sales fell 2.4% to $276.6 million.

Analysts polled by Thomson Reuters were looking for per-share earnings of 34 cents on revenue of $272.7 million.

Same store sales were up 0.1% systemwide, with franchise stores posting a slight gain, while company-owned stores put up a slight loss.

-By Paul Ziobro, Dow Jones Newswires; 212-416-2194; paul.ziobro@dowjones.com