Papa John's is one of the fastest-growing pizza delivery and carry-out restaurant chains. Selected income statement and statement of financial position amounts (in thousands) for two recent years are presented below.

Required:
1. Compute the return on equity for the current and prior years and explain the meaning of the change.
2. Would security analysts more likely increase or decrease their estimates of share value on the basis of this change? Explain.

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Profit Average shareholders' equity Current Year $ 36,796 128,445 Prior Year $ 32,735 136,536