Papa John’s Announces Significant Development Deal to Expand in Philadelphia Area
September 10 2020 - 7:00AM
Business Wire
Largest Domestic Traditional Store
Development Agreement in 20 Years Marks Renewed Focus on Brand’s
Franchise Growth Opportunity
Papa John’s International, Inc. (NASDAQ: PZZA)
today announced the signing of its largest traditional store
development agreement in North America in over 20 years,
accelerating growth of the Papa John’s brand in the Philadelphia
area.
Under the agreement, HB Restaurant Group, which currently owns
43 restaurants in the Mid-Atlantic area and has been a Papa John’s
franchisee since April 2019, is to open 49 new stores in
Philadelphia and southern New Jersey between 2021 and 2028.
“Papa John’s has long offered franchise investors one of the
fastest paybacks in our industry. Recent record sales have driven
further gains in store profitability. Combined with our resilient
e-commerce and delivery model, a transforming brand and significant
whitespace, Papa John’s today offers franchise investors a truly
compelling opportunity,” said Papa John’s Chief Development Officer
Amanda Clark. “We’re excited to grow our partnership with HB
Restaurant Group, already an important member of the Papa John’s
family, as we accelerate our development activities at this unique
moment for the brand.”
Stuart Hunt, President, HB Restaurant Group, added, “We joined
the Papa John’s system a year ago after seeing a tremendous
opportunity to invest in and grow with a great brand. We are very
excited to extend our growth strategy by developing new stores in a
great market like Philadelphia and southern New Jersey. Papa John’s
is built on supporting our neighbors where we are located, and we
embrace these values. We look forward to becoming an integral part
of our communities as we grow.”
Forward-Looking
Statements
Certain matters discussed in this press release and other
company communications that are not statements of historical fact
constitute forward-looking statements within the meaning of the
federal securities laws. Generally, the use of words such as
“expect,” “intend,” “estimate,” “believe,” “anticipate,” “will,”
“forecast,” “plan,” “project,” or similar words identify
forward-looking statements that we intend to be included within the
safe harbor protections provided by the federal securities laws.
Such forward-looking statements include or may relate to the
preliminary estimated same store sales growth and related trends,
projections or guidance concerning business performance, revenue,
earnings, cash flow, earnings per share, the financial impact of
the temporary business opportunities, disruptions and temporary
changes in demand we are experiencing related to the current
outbreak of the novel coronavirus disease (COVID-19) including the
projections for sales trends and comparable sales, our cash on hand
and access to our credit facilities, commodity costs, currency
fluctuations, profit margins, unit growth, unit level performance,
capital expenditures, restaurant and franchise development, the
duration of changes in consumer behavior caused by the pandemic,
the duration and number of temporary store closures, royalty
relief, the effectiveness of our strategic turnaround efforts and
other business initiatives, marketing efforts, liquidity,
compliance with debt covenants, stockholder and other stakeholder
engagement, strategic decisions and actions, dividends, effective
tax rates, regulatory changes and impacts, adoption of new
accounting standards, and other financial and operational measures.
Such statements are not guarantees of future performance and
involve certain risks, uncertainties and assumptions, which are
difficult to predict and many of which are beyond our control. Our
forward-looking statements are based on our assumptions which are
based on currently available information, including assumptions
about our ability to manage difficulties associated with or related
to the COVID-19 pandemic, including risks related to: the impact of
governmental restrictions on freedom of movement and business
operations including quarantines, social distancing requirements
and mandatory business closures; the virus’s impact on the
availability of our workforce; the potential disruption of our
supply chain; changes in consumer demand or behavior; the overall
contraction in global economic activity, including rising
unemployment; our liquidity position; our ability to navigate
changing governmental programs and regulations relating to the
pandemic; and the increased risk of phishing and other
cyber-attacks. Therefore, actual outcomes and results may differ
materially from those matters expressed or implied in such
forward-looking statements. Other risks, uncertainties and
assumptions that are involved in our forward-looking statements are
discussed in detail in “Part I. Item 1A. – Risk Factors” in our
Annual Report on Form 10-K for the fiscal year ended December 29,
2019, and in “Part II. Item 1A. – Risk Factors” in our Quarterly
Report on Form 10-Q for the first quarter ended March 29, 2020. We
undertake no obligation to update publicly any forward-looking
statements, whether as a result of future events, new information
or otherwise, except as required by law.
For more information about the company, please visit
www.papajohns.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200910005207/en/
Investor Contact: Steve Coke Interim Principal Financial
and Accounting Officer Steve_Coke@papajohns.com 502-261-7272
Media Contact: Madeline Chadwick Senior Vice President,
Communications and Corporate Affairs
Madeline_Chadwick@papajohns.com 502-261-4189
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