Financial Data and Key Metrics Changes - Global system-wide restaurant sales for Q1 2025 were $1.22 billion, up 1% compared to the prior year in constant currency [20] - North America comparable sales decreased by 2.7% in Q1 2025 compared to the prior year, but showed sequential improvement [21] - First quarter consolidated adjusted EBITDA was approximately $50 million, down from $61 million a year ago [24] Business Line Data and Key Metrics Changes - North America transaction comps were down less than 1% compared to the prior year, with improvements noted in key occasions like the Super Bowl and Valentine's Day [21] - International comparable sales increased by 3% year over year in Q1 2025, reflecting the benefits of international transformation initiatives [23] Market Data and Key Metrics Changes - The company experienced a decline in company-owned restaurant revenue by $17 million in Q1 2025, primarily due to refranchising efforts [23] - The advertising fund revenues increased by $7 million to support higher levels of national marketing compared to last year [24] Company Strategy and Development Direction - The company is focused on five key priorities: core product and innovation, amplifying marketing messages, investing in technology infrastructure, differentiating customer experience, and evolving the franchisee base [6][7] - A long-term partnership with Google Cloud was announced to enhance ordering and delivery experiences through AI [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer confidence amid economic volatility, noting improvements in value perception and traffic [40][41] - The company anticipates system-wide sales to increase by 25% in 2025, with North America comparable sales expected to be flat to up 2% [28][29] Other Important Information - The company plans to invest an additional $25 million in marketing this year to build on early successes [12] - The loyalty program saw significant growth, adding approximately 1 million new members in Q1 2025, bringing total membership to over 37 million [15] Q&A Session Summary Question: How is the consumer environment viewed from Papa John's perspective? - Management noted that consumer confidence remains challenged but highlighted improvements in value perception and traffic [40][41] Question: Can you elaborate on the impact of incremental advertising on demand? - Management reported positive early results from $7 million in incremental media spend, with significant gains in consumer awareness and value perception [44][45] Question: Where has the company made the most progress in its initiatives? - Management highlighted progress in technology transformation and storytelling around pizza craftsmanship as key areas of success [50][51] Question: What are the drivers of international sales growth? - Management indicated that focused countries are experiencing mid to double-digit growth, with successful innovation and quality execution [56][58] Question: How significant is the opportunity to improve supply chain costs for franchisees? - Management acknowledged early stages of supply chain optimization, with meaningful savings expected to enhance franchisee margins [61][62] Question: What is the outlook for refranchising company-owned restaurants? - Management indicated that refranchising could begin in Q2 or early Q3, focusing on core markets for growth-oriented franchisees [65][66]