Papa John's Reports Fourth Quarter and Full-Year 2007 Earnings

2008 Earnings Guidance Reaffirmed


Refranchising Initiative Announced

Highlights

-- Fourth quarter earnings per diluted share of $0.27 in 2007 vs.
$0.59 in 2006. Comparable fourth quarter results, excluding
certain noted items (see table on page 3), are $0.52 in 2007
vs. $0.43 in 2006, an increase of 20.9%.

-- Full-year earnings per diluted share of $1.09 in 2007 vs.
$1.92 in 2006. Comparable full-year results, excluding certain
noted items (see table on page 3), are $1.66 in 2007 vs. $1.40
in 2006, an increase of 18.6%.

-- Full year income from continuing operations before income
taxes, excluding the impact of consolidating BIBP, was
relatively flat (2006 results benefited from an additional
week of operations producing approximately $3.5 million of
pre-tax operating income)

-- Domestic system-wide comparable sales increases of 2.1% for
the quarter and 0.4% for the year

-- 69 net Papa John's worldwide openings during the quarter and
193 for all of 2007

-- Earnings guidance for 2008 reaffirmed at a range of $1.68 to
$1.76 per diluted share, excluding the impact of consolidating
BIBP

-- Domestic refranchising initiative announced, targeting a
reduction in company-owned unit mix below 20% in the next few
years


LOUISVILLE, Ky.--(BUSINESS WIRE)--Feb. 26, 2008--Papa John's International, Inc. (NASDAQ:PZZA) today announced revenues of $283.9 million for the fourth quarter of 2007, representing an increase of 2.2% from revenues of $277.9 million for the same period in 2006, including approximately $20.0 million for the additional week of operations in 2006, as described below. Net income for the fourth quarter of 2007 was $7.7 million, or $0.27 per diluted share (including an after-tax loss of $8.0 million, or $0.28 per diluted share, from the consolidation of the results of the franchisee-owned cheese purchasing company, BIBP Commodities, Inc. (BIBP), a variable interest entity, and a gain of $1.0 million, or $0.03 per diluted share, from the finalization of certain income tax issues), compared to 2006 fourth quarter net income of $19.0 million, or $0.59 per diluted share (including an after-tax gain of $1.4 million, or $0.04 per diluted share, from the consolidation of BIBP, and a gain of $1.6 million, or $0.05 per diluted share, from the finalization of certain income tax issues). The fourth-quarter 2006 pre-tax income results also benefited approximately $3.5 million, or $0.07 per diluted share from the additional week of operations.

Consolidated revenues for 2007 were $1.06 billion, representing an increase of 6.2% from 2006 revenues of $1.00 billion, including approximately $20.0 million for the additional week of operations in 2006. Net income for 2007 was $32.7 million, or $1.09 per diluted share (including a net loss of $20.5 million or $0.68 per diluted share, from the consolidation of BIBP and a gain of $3.4 million, or $0.11 per diluted share, from the finalization of certain income tax issues), compared to last year's net income of $63.4 million, or $1.92 per diluted share (including an after-tax gain of $11.8 million, or $0.36 per diluted share, from the consolidation of BIBP and a gain of $2.5 million, or $0.08 per diluted share, from the finalization of certain income tax issues). The 2006 full-year results benefited approximately $3.5 million, or $0.07 per diluted share, from the additional week of operations.

The company follows a fiscal year ending on the last Sunday of December, generally consisting of 52 weeks made up of four 13-week quarters, which are in turn made up of two four-week periods followed by one five-week period. In 2006, the company's fiscal year consisted of 53 weeks, with the additional week added to the fourth quarter (14 weeks) results. The additional week resulted in additional revenues of approximately $20.0 million and additional pre-tax income of approximately $3.5 million, or $0.07 per diluted share, for both the fourth quarter and full year of 2006.

The following tables summarize the above-mentioned items impacting 2007 net income and earnings per diluted share, as compared to the same periods presented for the prior year:


Fourth Quarter Full Year
----------------- ------------------
2007 2006 2007 2006
-------- -------- -------- ---------

Net Income, as reported $ 7,744 $18,999 $32,735 $ 63,375

Impact of discontinued operations - - - (389)
Loss (Gain) from BIBP cheese
purchasing entity 8,021 (1,432) 20,525 (11,844)
Impact of 53rd week of operations - (2,205) - (2,205)
(Gain) from finalization of
certain income tax issues (993) (1,575) (3,408) (2,525)
-------- -------- -------- ---------

Net Income, excluding noted items $14,772 $13,787 $49,852 $ 46,412
======== ======== ======== =========

Fourth Quarter Full Year
----------------- ------------------
2007 2006 2007 2006
-------- -------- -------- ---------

Earnings per diluted share, as
reported $ 0.27 $ 0.59 $ 1.09 $ 1.92

Impact of discontinued operations - - - (0.01)
Loss (Gain) from BIBP cheese
purchasing entity 0.28 (0.04) 0.68 (0.36)
Impact of 53rd week of operations - (0.07) - (0.07)
(Gain) from finalization of
certain income tax issues (0.03) (0.05) (0.11) (0.08)
-------- -------- -------- ---------

Earnings per diluted share,
excluding noted items $ 0.52 $ 0.43 $ 1.66 $ 1.40
======== ======== ======== =========


"We were very pleased with both our fourth quarter and full-year 2007 results," commented Papa John's president and chief executive officer, Nigel Travis. "We were the only national pizza chain that reported positive comp sales and domestic restaurant growth in 2007. In addition, growing net income by 7.4% and EPS by 18.6% in a very difficult cost and competitive environment is a testament to the strength of our system and the power of our brand. My congratulations to the entire Papa John's system for this very strong performance."

Revenues Comparison

Consolidated revenues were $283.9 million for the fourth quarter of 2007, an increase of $6.0 million or 2.2%, over the corresponding 2006 period. The 2006 period included $20.0 million from the additional week of operations mentioned above. The increase in revenues for the fourth quarter of 2007, excluding the impact of the additional week of operations in 2006, was principally due to the following:
[prfe]
-- Domestic company-owned restaurant revenues increased $8.1
million, reflecting the acquisition of 61 domestic restaurants
during 2007.

-- Franchising revenues increased $2.2 million, primarily due to
the collection of $2.0 million of fees associated with the
previously disclosed franchise renewal program, which was
substantially completed during the fourth quarter.

-- International revenues increased $2.4 million due to the
acquisition of restaurants in Beijing, China in December 2006
and increased royalty revenues from additional franchised
units.

-- Other sales increased due to expanded commercial volumes at
our print and promotions operations.

-- The above-mentioned increases in revenue were partially offset
by a decline in commissary revenues of $6.2 million associated
with the impact of the previously mentioned additional week of
operations in 2006.


For the full-year 2007, consolidated revenues increased $62.0 million, or 6.2%, principally due to the reasons mentioned above.

Operating Results and Cash Flow

Operating Results

Our pre-tax income from continuing operations for the fourth quarter of 2007 was $10.4 million, compared to $27.3 million for the corresponding period in 2006. For the full-year 2007, pre-tax income was $46.0 million, compared to $96.2 million for the corresponding period in 2006. Excluding the impact of the consolidation of BIBP, fourth- quarter 2007 pre-tax income from continuing operations was $22.7 million, a decrease of $2.7 million from the 2006 comparable period of $25.4 million, and pre-tax income for 2007 was $77.7 million, an increase of $567,000 over the 2006 comparable results of $77.2 million. As previously noted, the additional week of operations in 2006 added $3.5 million to the pre-tax income results for the fourth quarter and full year 2006. An analysis of the changes in pre-tax income from continuing operations for the fourth quarter and full-year 2007, respectively (excluding the consolidation of BIBP), are summarized as follows (analyzed on a segment basis -- see the Summary Financial Data table that follows for the reconciliation of segment income to consolidated income below):


-- Domestic Company-owned Restaurant Segment. Domestic
company-owned restaurants' operating income decreased $4.0
million and $7.8 million for the three months and full year
ended December 30, 2007, respectively. Approximately $1.6
million of the decrease for both the quarter and full year was
related to the 53rd week of operations in 2006. The remaining
decline in operating income was primarily due to an increase
in labor costs (including the impact of a federal minimum wage
increase in July 2007 and certain other minimum wage increases
in various states), increased commodity costs and other
operating costs. In addition, the 2007 results include charges
of $1.1 million and $1.5 million for the three months and full
year ended December 30, 2007, respectively, associated with
the closure or impairment of certain restaurants. The
full-year 2007 results were favorably impacted by a $594,000
pre-tax gain associated with the termination of a lease
agreement in the second quarter of 2007.

-- Domestic Commissary Segment. Domestic commissaries' operating
income decreased approximately $2.4 million for the three
months ended December 30, 2007 (a $1.2 million decrease
excluding the $1.2 million impact of the 53rd week of
operations in 2006) and increased $1.2 million for the full
year (a $2.4 million increase excluding the $1.2 million
impact of the 53rd week of operations in 2006), from the
comparable 2006 periods. The decrease in operating results,
excluding the impact of the 53rd week, for the three-month
period ended December 30, 2007 is primarily due to a $600,000
contribution to the Papa John's Marketing Fund and a reduction
in margin resulting from increases in the cost of certain
commodities that were not passed along to domestic
restaurants. The full-year 2007 operating results increased
approximately $2.4 million, excluding the impact of the 53rd
week, as compared to 2006, primarily due to increased volumes
of higher-margin fresh dough products and improved margins
from other commodities.

-- Domestic Franchising Segment. Domestic franchising operating
income increased $1.1 million for the three months ended
December 30, 2007 and was relatively flat for the full-year
period. The 2006 operating results included $1.0 million of
additional royalty revenue in 2006 for the 53rd week of
operations. The fourth quarter 2007 results included the
collection of $2.0 million in fees associated with our
franchise renewal program. On a full-year basis, franchise
royalty and development fees totaled $60.0 million in 2007, as
compared to $59.0 million in 2006. The increase in 2007
revenues was offset by an increase in costs with our field
organization support staff in 2007 to improve the support of
our domestic operations.

-- International Segment. The international operating results,
which exclude the Perfect Pizza operations in the United
Kingdom which were sold in March 2006, reported operating
losses of $2.4 million and $8.7 million for the three months
and full year ended December 30, 2007, as compared to
operating losses of $2.1 million and $8.9 million for the
corresponding 2006 periods. The decline in operating results
for the fourth quarter was principally due to the write-down
of the carrying value of one company-owned restaurant located
in the United Kingdom. On a full-year basis, increased current
year revenues due to growth in number of units and unit
volumes were substantially offset by increased personnel and
infrastructure investment costs. The 53rd week of operations
in 2006 did not have a significant impact on this segment.

-- All Others Segment. The "All others" reporting segment
reported operating earnings of $2.3 million and $6.3 million
for the three-month and full-year periods ended December 30,
2007, respectively, compared to $1.8 million and $5.6 million,
respectively, in the same periods of the prior year. The
increases of $471,000 and $720,000 in operating income were
due to improved operating results at our print and promotions
operations, reflecting an increase in our sales to commercial
customers and improved operating results from our captive
insurance subsidiary. The full-year improvement was also
impacted by improved operating results of our online
operations. The 53rd week of operations in 2006 did not have a
significant impact on this segment.

-- Unallocated Corporate Segment. Unallocated corporate expenses
decreased approximately $2.0 million and $6.1 million for the
three-month and full-year periods ended December 30, 2007,
respectively, as compared to the prior year periods, including
approximately $300,000 of additional expenses related to the
53rd week of operations in 2006.

The decreases in both periods were due to the following:

Fourth Quarter Full Year
------------------------ -------------------------
Increase Increase
Dec-07 Dec-06 (decrease) Dec-07 Dec-06 (decrease)
------------------------ -------------------------
General and
administrative $1,929 $6,177 $(4,248) $17,515 $29,429 $(11,914)
Net interest 1,609 800 809 5,891 1,584 4,307
Depreciation 1,711 1,499 212 6,702 6,226 476
Other expenses 1,055 (125) 1,180 1,346 284 1,062
------------------------ -------------------------
$6,304 $8,351 $(2,047) $31,454 $37,523 $ (6,069)
======================== =========================



The decreases in general and administrative costs were primarily due to lower management incentive costs (see further discussion below) and lower costs with our workers compensation, non-owned automobile and health self-insurance programs for the fourth quarter and full-year 2007 periods, as compared to the corresponding 2006 periods.

As previously noted, the primary reason for the decrease in the unallocated general and administrative expenses during 2007 was a reduction in management incentive costs. The following table summarizes our recorded expense (income) associated with our management incentive programs (in thousands):


Fourth Quarter Full Year
--------------- ----------------
2007 2006 2007 2006
--------------- ----------------

Equity compensation $1,145 $ 1,519 $ 4,883 $ 4,707
Performance unit plan (991) 305 (1,198) 2,503
Management incentive bonus plan (600) 935 2,711 6,474
--------------- ----------------
Total expense (income) $ (446)$ 2,759 $ 6,396 $13,684
=============== ================

Decrease $(3,205) $(7,288)
======== ========



The decrease in the executive performance unit incentive plan expense for the fourth quarter and full-year 2007 periods, as compared to the corresponding prior year periods, was due to a reduction in expected bonus payment, reflecting a decrease in the company's stock price, the forfeiture of units associated with certain executive departures and the change in the Founder Chairman's status from an employee director of the company to a non-employee director during 2007.

The annual management incentive bonus plan is based on the company's annual operating income performance and certain sales measures as compared to pre-established targets. The decrease in the expense for the fourth quarter and full-year 2007 periods, as compared to the corresponding prior year periods, was primarily due to below-target sales and operating income for the full-year of 2007 and the transition of the Founder Chairman to a non-employee director status.

Net interest expense included in the unallocated corporate segment increased approximately $809,000 and $4.3 million for the fourth quarter and full-year 2007 periods, respectively, as compared to the corresponding 2006 periods, principally due to a higher average debt balance resulting from share repurchase activity under our share repurchase program and franchise restaurant acquisitions during the last twelve months.

Other expenses increased during the fourth quarter and full year 2007, as compared to corresponding 2006 periods, due to costs associated with the disposition and write-down of certain assets to fair value.

The company recorded reductions in its customary income tax expense of $1.0 million and $3.4 million for the three months and full year ended December 30, 2007, respectively, and reductions of $1.6 million and $2.5 million for the three months and full-year comparable periods in 2006, respectively, due to the finalization of certain income tax issues. The effective income tax rate was 28.9% for full year 2007, compared to 34.5% for the comparable period in 2006. Our tax rate for 2008 is estimated to be 36.0%.

Cash Flow

Cash flow from continuing operations was $61.6 million for the full-year 2007 as compared to $85.2 million for the comparable period in 2006. The consolidation of BIBP decreased cash flow from operations by approximately $31.7 million in 2007 and increased cash flow from operations by $19.0 million in 2006. Excluding the impact of the consolidation of BIBP, cash flow from continuing operations was $93.3 million in 2007 as compared to $66.2 million in the corresponding 2006 period. The $27.1 million increase was primarily due to an increase in net income and an improvement in working capital including accounts receivable, inventories and accounts payable.

Form 10-K Filing

See the Management's Discussion and Analysis of Financial Condition and Results of Operations section of our annual Form 10-K filed with the Securities and Exchange Commission for additional information concerning our operating results and cash flow for the full year ended December 30, 2007.

Comparable Sales, System-wide Sales and Unit Count

Domestic system-wide comparable sales for the fourth quarter of 2007 increased 2.1% (composed of a 2.0% increase at company-owned restaurants and a 2.2% increase at franchised restaurants). Domestic system-wide comparable sales for the full year 2007 increased 0.4% (composed of a 0.5% increase at company-owned restaurants and a 0.3% increase at franchised restaurants). The comparable sales percentage represents the change in year-over-year sales for the same base of restaurants for the same calendar period.

Worldwide system sales decreased 0.6% to $559.2 million for the fourth quarter of 2007 and increased 2.4% to $2.15 billion for the full-year 2007, as compared to the comparable periods of the prior year. The worldwide system sales for 2006 included an additional week of operations, accounting for an additional $40.0 million in sales.

The following table summarizes system-wide sales for the three- and twelve-months ended December 30, 2007 and December 31, 2006, on an actual U.S. dollar basis (dollars in thousands):


Three Months Ended
--------------------------------
Percentage
Dec. 30, Dec. 31, Increase
2007 2006 (1) (Decrease)
--------------------------------

Domestic:
Company-owned $ 136,043 $ 127,981 6.3%
Franchised 371,845 394,186 (5.7%)
--------------------------------
Total Domestic 507,888 522,167 (2.7%)
International 51,271 40,280 27.3%
--------------------------------
Total System-wide Sales $ 559,159 $ 562,447 (0.6%)
================================

Year Ended
--------------------------------
Percentage
Dec. 30, Dec. 31, Increase
2007 2006 (1) (Decrease)
--------------------------------

Domestic:
Company-owned $ 504,330 $ 447,938 12.6%
Franchised 1,464,928 1,510,465 (3.0%)
--------------------------------
Total Domestic 1,969,258 1,958,403 0.6%
International 180,194 140,673 28.1%
--------------------------------
Total System-wide Sales $2,149,452 $2,099,076 2.4%
================================


(1) The 2006 fourth quarter and full year results include an extra week of operations, which added approximately $40.0 million of sales.

During the fourth quarter of 2007, 49 domestic restaurants (five company-owned and 44 franchised) were opened. Additionally, 38 international restaurants (three company-owned and 35 franchised) were opened, while 16 domestic and two international franchised restaurants were closed, resulting in 69 net openings worldwide for the quarter. There were 193 net openings worldwide in 2007. Our total domestic development pipeline as of December 30, 2007 included approximately 300 restaurants scheduled to open over the next nine years.

At December 30, 2007, there were 3,208 Papa John's restaurants (662 company-owned and 2,546 franchised) operating in all 50 states and 28 countries. The company-owned unit count includes 128 restaurants operated in majority-owned domestic joint venture arrangements, the operating results of which are fully consolidated into the company's results.

Refranchising Initiative

The company announced the implementation of a formal refranchising initiative, the goal of which is to increase the percentage of franchised units in the domestic restaurant portfolio over time. The company believes shifting the domestic restaurant portfolio mix more toward franchised units will improve the absolute level and consistency of operating margin percentage and be more consistent with the trend in franchise business models in the domestic restaurant category.

Of the total 2,760 domestic units open as of December 30, 2007, 648 or 23.5% were company-owned (including 128 units owned in joint venture arrangements with franchisees in which the company has a majority ownership position). The company believes that through a combination of net openings more heavily weighted toward franchise units and the selective refranchising of certain company-owned markets, the percentage of company-owned units can be decreased below 20% in the next few years. Any refranchising activities completed during 2008 are not expected to have a significant impact on 2008 operating income and the net proceeds of any such sales are expected to support the share repurchase program previously announced.

Franchise Agreement Renewals Update

During the fourth quarter of 2007, approximately 75% of our domestic franchisees renewed their franchise agreements for an additional 10-year period. In connection with the renewals, we collected approximately $2.0 million in renewal fee income in the fourth quarter of 2007. A substantial portion of the remaining franchisees renewed franchise agreements under this program subsequent to year-end. The royalty rate increased one-quarter percent, to 4.25%, as part of the agreement to increase the royalty to 5.0% by 2011, under the new standard franchise agreement effective in January 2008.

International Update

A total of 38 restaurants were opened in international markets during the fourth quarter of 2007, of which 12 were located in our fastest-growing markets, Korea and China. As of December 30, 2007, the company had a total of 448 corporate and franchised restaurants operating internationally, of which 141 were located in Korea and China. Our total international development pipeline as of December 30, 2007 included approximately 900 restaurants scheduled to open over the next ten years.

At the end of 2007, we had over 100 restaurants operating in the United Kingdom and Ireland. During the first half of 2008, we plan to open our 100th restaurant in China. In 2008, we plan to open our first franchise restaurant in each of Poland, Turkey and Jordan.

Share Repurchase Activity

The company repurchased approximately 471,000 shares of its common stock at an average price of $23.21 per share, or a total of $10.9 million, during the fourth quarter of 2007, and 2.7 million shares of its common stock at an average price of $27.15 per share, or a total of $72.9 million, during 2007. Subsequent to year-end, through February 19, 2008, the company repurchased an additional $2.3 million of common stock (104,000 shares at an average price of $21.74 per share). A total of 91,000 and 765,000 shares of common stock were issued upon the exercise of stock options for the fourth quarter and full-year ended December 30, 2007, respectively.

There were 29.0 million diluted weighted average shares outstanding for the fourth quarter of 2007 as compared to 32.2 million for the same period in 2006. Approximately 28.8 million actual shares of the company's common stock were outstanding as of December 30, 2007. The company's board of directors has authorized the repurchase of an additional $50.0 million of common stock through December 28, 2008. At February 19, 2008, $47.7 remains available for repurchase under this authorization.

The company's share repurchase activity increased earnings per diluted share from continuing operations, excluding the impact of the consolidation of BIBP, by $0.03 and $0.09 for the fourth quarter and full-year 2007 periods, respectively.

2008 Earnings Guidance Reaffirmed

The company reaffirms its previously announced 2008 earnings per diluted share guidance in the range of $1.68 to $1.76 for the year. The comparable base earnings results for 2007 were $1.66 per diluted share. The projected earnings guidance excludes any impact from the consolidation of the results of BIBP. The 2008 guidance was not adjusted upward in response to favorable actual results in the fourth quarter of 2007 due to both the nature of the favorable results in the fourth quarter of 2007 and the continued expectations of commodity price pressures throughout 2008, especially wheat and cheese.

Forward-Looking Statements

Certain information contained in this annual report, particularly information regarding future financial performance and plans and objectives of management, is forward-looking. Certain factors could cause actual results to differ materially from those expressed in forward-looking statements. These factors include, but are not limited to: the uncertainties associated with litigation; changes in pricing or other marketing or promotional strategies by competitors which may adversely affect sales; new product and concept developments by food industry competitors; the ability of the Company and its franchisees to meet planned growth targets and operate new and existing restaurants profitably; general economic conditions; increases in or sustained high cost levels of food ingredients and other commodities, paper, utilities, fuel, employee compensation and benefits, insurance and similar costs; the ability to obtain ingredients from alternative suppliers, if needed; health- or disease-related disruptions or consumer concerns about commodities supplies; the selection and availability of suitable restaurant locations; negotiation of suitable lease or financing terms; constraints on permitting and construction of restaurants; local governmental agencies' restrictions on the sale of certain food products; higher-than-anticipated construction costs; the hiring, training and retention of management and other personnel; changes in consumer taste, demographic trends, traffic patterns and the type, number and location of competing restaurants; franchisee relations; the possibility of impairment charges if PJUK or recently acquired restaurants perform below our expectations; our PJUK operations remain contingently liable for payment under 74 lease arrangements with a total value of $10.3 million associated with the sold Perfect Pizza operations; federal and state laws governing such matters as wages, benefits, working conditions, citizenship requirements and overtime, including legislation to further increase the federal and state minimum wage; and labor shortages in various markets resulting in higher required wage rates. In recent months, the credit markets have experienced instability. Our franchisees may experience difficulty in obtaining adequate financing and thus our growth strategy and franchise revenues may be adversely affected. The above factors might be especially harmful to the financial viability of franchisees or Company-owned operations in under-penetrated or emerging markets, leading to greater unit closings than anticipated. Increases in projected claims losses for the Company's self-insured coverage or within the captive franchise insurance program could have a significant impact on our operating results. Additionally, domestic franchisees are only required to purchase seasoned sauce and dough from our quality control centers ("QC Centers") and changes in purchasing practices by domestic franchisees could adversely affect the financial results of our QC Centers. Our international operations are subject to additional factors, including political and health conditions in the countries in which the Company or its franchisees operate; currency regulations and fluctuations; differing business and social cultures and consumer preferences; diverse government regulations and structures; ability to source high-quality ingredients and other commodities in a cost-effective manner; and differing interpretation of the obligations established in franchise agreements with international franchisees.

Conference Call

A conference call is scheduled for February 27, 2008, at 10:00 EST to review fourth quarter and full-year earnings results. The call can be accessed from the company's web page at www.papajohns.com in a listen-only mode, or dial 800-487-2662 (pass code 32138619) for participation in the question and answer session. International participants may dial 706-679-8452 (pass code 32138619).

The conference call will be available for replay, including downloadable podcast, beginning February 27, 2008, at approximately noon through March 5, 2008, at midnight EST. The replay can be accessed from the company's web page at www.papajohns.com or by dialing 800-642-1687 (pass code 32138619). International participants may dial 706-645-9291 (pass code 32138619).


Summary Financial Data
Papa John's International, Inc.
(Unaudited)


Three Months Ended Year Ended
-------------------- -----------------------
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
(In thousands, except per
share amounts) 2007 2006 (1) 2007 2006 (1)
--------- ---------- ----------- -----------

Revenues $283,940 $ 277,923 $1,063,595 $1,001,557
========= ========== =========== ===========

Income from continuing
operations before income
taxes (a) $ 10,366 $ 27,344 $ 46,028 $ 96,157
========= ========== =========== ===========

Net income $ 7,744 $ 18,999 $ 32,735 $ 63,375
========= ========== =========== ===========

Earnings per share -
assuming dilution $ 0.27 $ 0.59 $ 1.09 $ 1.92
========= ========== =========== ===========

Weighted average shares
outstanding - assuming
dilution 28,985 32,230 30,017 33,046
========= ========== =========== ===========

EBITDA (2) $ 20,677 $ 35,191 $ 83,913 $ 125,163
========= ========== =========== ===========


(a) The following is a summary of our income (loss) from continuing
operations before income taxes:

Three Months Ended Year Ended
-------------------- -----------------------
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
2007 2006 (1) 2007 2006 (1)
--------- ---------- ----------- -----------

Domestic company-owned
restaurants $ 6,164 $ 10,164 $ 25,407 $ 33,176
Domestic commissaries 8,255 10,667 35,847 34,690
Domestic franchising 14,729 13,662 51,466 51,543
International (2,360) (2,111) (8,734) (8,874)
All others 2,303 1,832 6,348 5,628
Unallocated corporate
expenses (6,304) (8,351) (31,454) (37,523)
Elimination of
intersegment profits (82) (479) (1,143) (1,470)
--------- ---------- ----------- -----------
Income from continuing
operations before income
taxes, exluding VIEs 22,705 25,384 77,737 77,170
VIEs, primarily BIBP (3) (12,339) 1,960 (31,709) 18,987
--------- ---------- ----------- -----------
Total income from
continuing operations
before income taxes $ 10,366 $ 27,344 $ 46,028 $ 96,157
========= ========== =========== ===========


Summary Financial Data (continued)
Papa John's International, Inc.
(Unaudited)


The following is a reconciliation of EBITDA to net income:

Three Months Ended Year Ended
------------------- --------------------
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
2007 2006 (1) 2007 2006 (1)
-------- ---------- --------- ----------

EBITDA (2) $20,677 $ 35,191 $ 83,913 $ 125,163
Income tax expense (2,622) (8,345) (13,293) (33,171)
Net interest (1,840) (477) (6,019) (1,798)
Depreciation and amortization (8,471) (7,370) (31,866) (27,208)
Income from discontinued
operations, net of tax - - - 389
-------- ---------- --------- ----------
Net income $ 7,744 $ 18,999 $ 32,735 $ 63,375
======== ========== ========= ==========


(1) The three-month and full-year periods in 2006 include one
additional week of operations which produced $20.0 million in
additional consolidated revenues and $3.5 million in additional
income from continuing operations before income taxes.

(2) Management considers EBITDA to be a meaningful indicator of
operating performance from continuing operations before
depreciation, amortization, net interest and income taxes. EBITDA
provides us with an understanding of one aspect of earnings
before the impact of investing and financing transactions and
income taxes. While EBITDA should not be construed as a
substitute for net income or a better indicator of liquidity than
cash flows from operating activities, which are determined in
accordance with accounting principles generally accepted in the
United States (GAAP), it is included herein to provide additional
information with respect to the ability of the company to meet
its future debt service, capital expenditure and working capital
requirements. EBITDA is not necessarily a measure of the
company's ability to fund its cash needs and it excludes
components that are significant in understanding and assessing
our results of operations and cash flows. In addition, EBITDA is
not a term defined by GAAP and as a result our measure of EBITDA
might not be comparable to similarly titled measures used by
other companies. The above EBITDA calculation includes the
operating results of BIBP Commodities, Inc., a variable interest
entity.

(3) BIBP incurred an operating loss of $31.7 million in 2007, which
was composed of losses associated with cheese sold to domestic
company-owned restaurants and franchise restaurants of $8.0
million and $22.9 million, respectively. The remainder of the
2007 loss was primarily composed of interest expense on
outstanding debt with a third-party bank and Papa John's. For
2006, BIBP reported operating income of $19.0 million, which was
composed of income associated with cheese sold to domestic
company-owned restaurants and franchise restaurants of $4.6
million and $15.2 million, respectively. The 2006 income from the
sale of cheese was partially offset by interest expense on
outstanding debt.


For more information about the company, please visit www.papajohns.com.

Papa John's International, Inc. and Subsidiaries
Consolidated Statements of Income


Three Months Ended Year Ended
---------------------- ----------------------
December December December December
30, 2007 31, 2006 30, 2007 31, 2006
---------------------- ----------------------
(In thousands, except (Unaudited)(Unaudited)
per share amounts)
Revenues:
Domestic:
Company-owned
restaurant sales $136,043 $127,981 $ 504,330 $ 447,938
Variable interest
entities restaurant
sales 1,980 1,402 7,131 7,859
Franchise royalties 13,927 14,986 55,283 56,374
Franchise and
development fees 2,853 624 4,758 2,597
Commissary sales 104,923 111,143 399,099 413,075
Other sales 14,979 14,904 61,820 50,505
International:
Royalties and
franchise and
development fees 3,129 2,349 10,314 7,551
Restaurant and
commissary sales 6,106 4,534 20,860 15,658
---------------------- ----------------------
Total revenues 283,940 277,923 1,063,595 1,001,557

Costs and expenses:
Domestic Company-owned
restaurant expenses:
Cost of sales 32,906 26,474 112,773 88,311
Salaries and
benefits 40,802 36,902 152,043 131,946
Advertising and
related costs 12,061 11,881 47,121 41,279
Occupancy costs 8,405 7,510 31,866 27,245
Other operating
expenses 18,326 16,667 68,460 58,824
---------------------- ----------------------
Total domestic
Company-owned
restaurant expenses 112,500 99,434 412,263 347,605

Variable interest
entities restaurant
expenses 1,721 1,265 6,018 6,708

Domestic commissary
and other expenses:
Cost of sales 88,438 91,293 332,163 336,659
Salaries and
benefits 8,126 9,056 34,622 32,363
Other operating
expenses 10,706 11,182 43,766 45,153
---------------------- ----------------------
Total domestic
commissary and other
expenses 107,270 111,531 410,551 414,175

Loss (income) from the
franchise cheese-
purchasing program, net
of minority interest 8,821 (1,145) 22,853 (15,247)
International operating
expenses 5,697 4,582 18,718 15,824
General and
administrative expenses 23,437 25,863 101,340 102,920
Minority interests and
other general expenses 3,817 1,202 7,939 4,409
Depreciation and
amortization 8,471 7,370 31,866 27,208
---------------------- ----------------------
Total costs and expenses 271,734 250,102 1,011,548 903,602
---------------------- ----------------------

Operating income from
continuing operations 12,206 27,821 52,047 97,955
Net interest (1,840) (477) (6,019) (1,798)
---------------------- ----------------------
Income from continuing
operations before
income taxes 10,366 27,344 46,028 96,157
Income tax expense 2,622 8,345 13,293 33,171
---------------------- ----------------------

Income from continuing
operations 7,744 18,999 32,735 62,986
Income from discontinued
operations, net of tax - - - 389
---------------------- ----------------------
Net income $ 7,744 $ 18,999 $ 32,735 $ 63,375
====================== ======================

Basic earnings per
common share:
Income from continuing
operations $ 0.27 $ 0.60 $ 1.10 $ 1.95
Income from
discontinued
operations, net of
tax - - - 0.01
---------------------- ----------------------
Basic earnings per
common share $ 0.27 $ 0.60 $ 1.10 $ 1.96
====================== ======================

Earnings per common
share - assuming
dilution:
Income from continuing
operations $ 0.27 $ 0.59 $ 1.09 $ 1.91
Income from
discontinued
operations, net of
tax - - - 0.01
---------------------- ----------------------
Earnings per common
share - assuming
dilution $ 0.27 $ 0.59 $ 1.09 $ 1.92
====================== ======================

Basic weighted average
shares outstanding 28,837 31,631 29,666 32,312
====================== ======================
Diluted weighted average
shares outstanding 28,985 32,230 30,017 33,046
====================== ======================

Note: The statements of income for the years ended December 30, 2007
and December 31, 2006 have been derived from the audited consolidated
financial statements at those dates, but do not include all
information and footnotes required by generally accepted accounting
principles for a complete set of financial statements. The three-
month and full-year periods in 2006 include one additional week of
operations.


Papa John's International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets


December 30, December 31,
2007 2006
(Note) (Note)
------------ ------------
(In thousands)

Assets
Current assets:
Cash and cash equivalents $ 8,877 $ 12,979
Accounts receivable 22,539 23,326
Inventories 18,806 26,729
Prepaid expenses 10,711 7,779
Other current assets 5,581 7,368
Deferred income taxes 7,147 6,362
------------ ------------
Total current assets 73,661 84,543

Investments 825 1,254
Net property and equipment 198,957 197,722
Notes receivable 11,804 12,104
Deferred income taxes 12,384 1,643
Goodwill 86,505 67,357
Other assets 17,681 15,016
------------ ------------
Total assets $ 401,817 $ 379,639
============ ============


Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 31,157 $ 29,202
Income and other taxes 10,866 15,136
Accrued expenses 56,466 57,233
Current portion of debt 8,700 525
------------ ------------
Total current liabilities 107,189 102,096

Unearned franchise and development fees 6,284 7,562
Long-term debt, net of current portion 134,006 96,511
Other long-term liabilities 27,435 27,302
------------ ------------
Total liabilities 274,914 233,471

Total stockholders' equity 126,903 146,168
------------ ------------
Total liabilities and stockholders' equity $ 401,817 $ 379,639
============ ============


Note: The balance sheets at December 30, 2007 and December 31, 2006
have been derived from the audited consolidated financial statements
at those dates, but do not include all information and footnotes
required by generally accepted accounting principles for a complete
set of financial statements.


Papa John's International, Inc. and Subsidiaries
Consolidated Statements of Cash Flows


Year Ended
--------------------
(In thousands) December December
30, 2007 31, 2006
--------------------

Operating activities
Net income $ 32,735 $ 63,375
Income from discontinued operations (net of income
taxes) - (389)
Adjustments to reconcile net income to net cash
provided by operating activities:
Restaurant closure, impairment and disposition
losses (gains) 1,444 (260)
Provision for uncollectible accounts and notes
receivable 1,718 3,445
Depreciation and amortization 31,866 27,208
Deferred income taxes (10,779) 3,191
Stock-based compensation expense 4,883 4,707
Excess tax benefit related to exercise of non-
qualified stock options (3,325) (6,533)
Other 5,927 5,158
Changes in operating assets and liabilities, net
of acquisitions:
Accounts receivable (183) (6,020)
Inventories 7,915 (583)
Prepaid expenses (3,402) (2,148)
Other current assets 2,468 (630)
Other assets and liabilities (7,092) (7,211)
Accounts payable 1,893 (2,168)
Income and other taxes (3,656) (1,726)
Accrued expenses 457 5,465
Unearned franchise and development fees (1,278) 306
--------- ----------
Net cash provided by operating activities from
continuing operations 61,591 85,187
Operating cash flows from discontinued operations - 414
--------- ----------
Net cash provided by operating activities 61,591 85,601

Investing activities
Purchase of property and equipment (31,148) (39,352)
Purchase of investments (303) (2,014)
Proceeds from sale or maturity of investments 731 6,983
Loans issued (6,541) (6,181)
Loan repayments 6,257 9,339
Acquisitions (24,983) (31,943)
Proceeds from divestitures of restaurants 632 1,300
Other 32 286
--------- ----------
Net cash from continuing operations used in
investing activities (55,323) (61,582)
Proceeds from divestiture of discontinued
operations - 8,020
--------- ----------
Net cash used in investing activities (55,323) (53,562)

Financing activities
Net proceeds from line of credit facility 37,500 47,500
Net proceeds (repayments) from short-term debt -
variable interest entities 8,175 (5,575)
Excess tax benefit related to exercise of non-
qualified stock options 3,325 6,533
Proceeds from exercise of stock options 12,219 15,214
Acquisition of Company common stock (72,871) (106,292)
Other 1,035 1,293
--------- ----------
Net cash used in financing activities (10,617) (41,327)

Effect of exchange rate changes on cash and cash
equivalents 247 169
--------- ----------
Change in cash and cash equivalents (4,102) (9,119)
Cash and cash equivalents at beginning of period 12,979 22,098
--------- ----------

Cash and cash equivalents at end of period $ 8,877 $ 12,979
========= ==========

Note: The cash flows at December 30, 2007 and December 31, 2006 have
been derived from the audited consolidated financial statements at
those dates, but do not include all information and footnotes
required by generally accepted accounting principles for a complete
set of financial statements. The full-year period in 2006 includes
one additional week of operations.


Restaurant Progression
Papa John's International, Inc.

Fourth Quarter Ended December 30, 2007
----------------------------------------------
Corporate Franchised
Domestic Int'l Domestic Int'l Total
----------------------------------------------
Papa John's restaurants
Beginning of period 649 11 2,078 401 3,139
Opened 5 3 44 35 87
Closed (6) - (10) (2) (18)
Acquired - - - - -
Sold - - - - -
----------------------------------------------
End of Period 648 14 2,112 434 3,208
==============================================


Fourth Quarter Ended December 31, 2006
----------------------------------------------
Corporate Franchised
Domestic Int'l Domestic Int'l Total
----------------------------------------------
Papa John's restaurants
Beginning of period 558 6 2,086 328 2,978
Opened 8 - 23 29 60
Closed - - (18) (5) (23)
Acquired 11 5 - - 16
Sold - - (11) (5) (16)
----------------------------------------------
End of Period 577 11 2,080 347 3,015
==============================================


Restaurant Progression
Papa John's International, Inc.

Year Ended December 30, 2007
--------------------------------------------
Corporate Franchised
Domestic Int'l Domestic Int'l Total
--------------------------------------------
Papa John's restaurants
Beginning of period 577 11 2,080 347 3,015
Opened 20 4 140 99 263
Closed (9) - (48) (13) (70)
Acquired 61 2 1 3 67
Sold (1) (3) (61) (2) (67)
--------------------------------------------
End of Period 648 14 2,112 434 3,208
============================================


Year Ended December 31, 2006
--------------------------------------------
Corporate Franchised
Domestic Int'l Domestic Int'l Total
--------------------------------------------
Papa John's restaurants
Beginning of period 502 2 2,097 325 2,926
Opened 19 1 105 86 211
Closed (1) - (65) (56) (122)
Acquired 57 8 - - 65
Sold - - (57) (8) (65)
--------------------------------------------
End of Period 577 11 2,080 347 3,015
============================================


--------------------------------------------
Corporate Franchised
Domestic Int'l Domestic Int'l Total
--------------------------------------------
Perfect Pizza restaurants
Beginning of period - - - 112 112
Closed - - - (3) (3)
Sold - - - (109) (109)
--------------------------------------------
End of Period - - - - -
============================================



Note: The PJUK Perfect Pizza operations were sold in March 2006.

SOURCE: Papa John's International, Inc.

###

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