Papa John’s(PZZA)2025-02-28 01:32Financial Data and Key Metrics Changes - For Q4 2024, global system-wide restaurant sales were 531 million, down 7% from last year, but excluding the impact of the additional week, revenue was largely flat [35] - Adjusted operating income for Q4 was 10 million from a year ago, with an adjusted operating income margin of 7%, down from 8.3% in 2023 [37] Business Line Data and Key Metrics Changes - North America comparable sales were down 4% in Q4, with transaction comps down 2% year-over-year, but showing sequential improvement [31] - International comparable sales were up 2% year-over-year in Q4, with strong performance in key markets like the Middle East [34] Market Data and Key Metrics Changes - Domestic average unit sales in North America were approximately 25 million in marketing, focusing on both corporate and franchisee markets [17][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy to accelerate sales and drive long-term growth, despite a challenging operating environment [41] - For 2025, the company expects system-wide sales to increase between 2% and 5%, with North America comparable sales anticipated to be flat to up 2% [42] Other Important Information - The company plans to report adjusted EBITDA as a key performance measure starting in 2025, with an anticipated range of 220 million [44] - The company refranchised 15 restaurants in Wisconsin and is in discussions to refranchise additional locations, which is expected to be neutral to slightly accretive to earnings [26] Q&A Session Summary Question: Industry expectations for 2025 and performance relative to the industry - Management acknowledged a value-focused environment and expects the pizza category to be flattish to slightly down, but believes initiatives in loyalty and marketing will help gain market share [56][58] Question: International growth and market penetration - Management highlighted a focus on nine core international markets, indicating significant growth potential and ongoing success in regions like the U.K. and the Middle East [66][70] Question: EBITDA guidance and investment breakdown - Management detailed that the EBITDA guidance includes up to $25 million in marketing investments, with a focus on both corporate and franchisee markets [76][81] Question: Development incentives and loyalty program performance - Management confirmed the three-year abatement for development incentives and noted significant growth in loyalty program membership and engagement [120][123]