Papa John's is one of the fastest-growing pizza delivery and carry-out restaurant chains in the country.

Presented here are selected income statement and balance sheet amounts (in thousands).

Required: 1. Compute ROE for the current and prior years and explain the meaning of the change. 2. Explain the major cause(s) of the improvement in Papa John's ROE using ROE profit driver analysis. 3. Would security analysts more likely increase or decrease their estimates of share value on the basis of this change? Explain.

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Current Year Prior Year Net sales $508.784 $360,052 Net income 26.853 18,614 Average shareholders' equity 232.988 196,352 Average total assets 381.014 286.057