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Papa John's sales up in 1st-Q, but profit down on charge

LOUISVILLE Ky. Papa John’s International Inc. reported a 34-percent plunge in first quarter net income on a $5.2 million loss related to its franchisee-owned cheese purchasing company.

For the first quarter ended March 30, Papa John's posted net income of $8.6 million, or 30 cents per share, compared with $13.1 million, or 43 cents a share in the year-ago period. Excluding the impact of the cheese purchasing arm, per-share earnings would have been 48 cents, the company said.

Analysts polled by Thomson Financial on average had expected per-share earnings of 44 cents.

Revenue increased almost 11 percent to 289 million for the first quarter on strong sales at both corporate and franchisee units, Papa John's said.

Domestic systemwide same-store sales increased 1.7 percent, which includes a 2.6-percent increase at company stores and a 1.4-percent bump at franchised locations.

“We had an outstanding first quarter in arguably the toughest operating environment in our company’s history,” said Nigel Travis, president and chief executive of Papa John's.

As record-high commodity prices, especially wheat and cheese, continue to challenge operators, Papa John's said it was on track to meet its previously announced earnings guidance for the full year in the range of $1.68 to $1.76 per share.

Papa John's, based here, operates or franchises 3,238 units worldwide, including 2,770 in the United States.

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