Papa John’s International, Inc.

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Introduction

Papa John’s International, Inc., is headquartered in Louisville, Kentucky it is the world’s largest pizza chain and considered paramount in the pizza industry. Papa John’s domestic pizzas are made exclusively from a proprietary blend of wheat flour, cheese made from 100% real mozzarella, fresh-packed pizza sauce made from vine-ripened tomatoes (not from concentrate) and a proprietary mix of savory spices, and a choice of high-quality meat (100% beef, pork and chicken with no fillers) and vegetable toppings. However, international ingredients vary to meet customs and tastes. (http://ir.papajohns.com/)

The company operates approximately 3,400 domestic and international pizza restaurants. They have five segments of their business: domestic restaurants, domestic commissaries, domestic franchises, international operations, and variable interest entities. (Barney & Hesterly, 2010) They have company-owned restaurants in mature and developed markets, but have recently experienced a measurable decrease in their domestic franchising sales because these franchisees are not strategically located in the more heavily concentrated markets like their company owned restaurants.

To further develop the Papa John franchisees, they are working on various economic systems to provide royalty and local marketing relief for struggling franchisees, by providing financing to assist existing and/or new businesses, and educating lenders and banking institutions on the Papa John’s business models and goals.

Papa John’s has currently started repurchasing about 1 million shares of its common stock at an average price of $22.52 per share, the company’s board of directors recently extended a repurchase plan through the end of 2010. Papa John’s...

... middle of paper ...

... end-user customers, so as to capture additional market presence.

Dominos has recently changed their pizza ingredient and their pricing structure they could become a major threat to Papa John’s customer base because they have always prided themselves on using high-quality ingredients. Dominos is now making attempting to grab up some Papa John’s domestic market share.

Works Cited

Form 10-K Annual Report Filed Feb 24, 2009, http://ir.papajohns.com/secfiling.cfm?filingID=1104659-09-11825 (Retrieved 2/11/10)

Thursday, February 11, 2010, 2:43pm EST | Modified: Thursday, February 11, 2010, 3:04pm, Papa John’s cooks up heart-shaped pizza promo http://louisville.bizjournals.com/louisville/stories/2010/02/08/daily41.html?ana=yfcpc (Retrieved 2/11/10)

http://money.cnn.com/2009/09/22/news/companies/papa_johns_pizza_schnatter.fortune/index.htm (retrieved 2/12/10)

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