Question
Analyze the company's financial strength: Papa John's International, Inc (see info below) Assess the financial strength of the company. How is the financial strength likely
Analyze the company's financial strength: Papa John's International, Inc (see info below)
Assess the financial strength of the company.
How is the financial strength likely to change in the next year or so?
What are its sources of capital and what is the value of the company's capital?
How have capital markets responded to the company in the last year?
What is the quality of earnings?
How does the company compare with others in the industry?
| Year Ended | |||||
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| Dec. 28, | Dec. 29, | Dec. 30, | Dec. 25, | Dec. 26, |
| (In thousands, except per share |
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| data) | 2014 | 2013 | 2012 | 2011 | 2010 |
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| 52 weeks | 52 weeks | 53 weeks | 52 weeks | 52 weeks |
| Income Statement Data |
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| North America revenues: |
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| Domestic Company-owned restaurant |
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| sales | $701,854 | $635,317 | $592,203 | $525,841 | $503,272 |
| Franchise royalties | 89,443 | 81,692 | 79,567 | 73,694 | 69,631 |
| Franchise and development fees | 726 | 1,181 | 806 | 722 | 610 |
| Domestic commissary sales | 629,492 | 578,870 | 545,924 | 508,155 | 454,506 |
| Other sales | 74,179 | 53,322 | 51,223 | 50,912 | 51,951 |
| International revenues: |
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| Royalties and franchise and |
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| development fees (3) | 25,730 | 21,979 | 19,881 | 16,327 | 13,265 |
| Restaurant and commissary sales |
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| (4) | 76,725 | 66,661 | 53,049 | 42,231 | 33,162 |
| Total revenues | 1,598,149 | 1,439,022 | 1,342,653 | 1,217,882 | 1,126,397 |
| Operating income (5) | 117,630 | 106,503 | 99,807 | 87,017 | 86,744 |
| Investment income | 702 | 589 | 750 | 755 | 875 |
| Interest expense | (4,077) | (983) | (2,162) | (2,981) | (4,309) |
| Income before income taxes | 114,255 | 106,109 | 98,395 | 84,791 | 83,310 |
| Income tax expense | 36,558 | 33,130 | 32,393 | 26,324 | 27,247 |
| Net income before attribution to |
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| noncontrolling interests | 77,697 | 72,979 | 66,002 | 58,467 | 56,063 |
| Income attributable to |
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| noncontrolling interests (6) | (4,382) | (3,442) | (4,342) | (3,732) | (3,485) |
| Net income attributable to the |
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| Company | $ 73,315 | $ 69,537 | $61,660 | $ 54,735 | $ 52,578 |
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| Net income attributable to common |
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| shareholders | $ 72,869 | $ 68,497 | $61,660 | $ 54,735 | $ 52,578 |
| Basic earnings per common share | $1.78 | $1.58 | $1.31 | $1.09 | $1.00 |
| Earnings per common share - |
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| assuming dilution | $1.75 | $1.55 | $1.29 | $1.08 | $0.99 |
| Basic weighted average common |
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| shares outstanding | 40,960 | 43,387 | 46,916 | 50,086 | 52,656 |
| Diluted weighted average common |
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| shares outstanding | 41,718 | 44,243 | 47,810 | 50,620 | 52,936 |
| Dividends declared per common |
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| share | $ 0.53 | $ 0.25 | $ - | $ - | $ - |
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| Balance Sheet Data |
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| Total assets | $512,803 | $464,291 | $438,408 | $390,382 | $417,492 |
| Total debt | 230,451 | 157,900 | 88,258 | 51,489 | 99,017 |
| Mandatorily redeemable |
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| noncontrolling interests (7) | - | 10,786 | 11,837 | 11,065 | 9,972 |
| Redeemable noncontrolling |
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| interests | 8,555 | 7,024 | 6,380 | 3,965 | 3,512 |
| Total stockholders' equity | 98,715 | 138,184 | 181,514 | 205,647 | 195,608 |
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Public Finance And Public Policy
Authors: Arye L. Hillman
2nd Edition
0521738059, 978-0521738057
