According to a news report from bloggingstocks.com, “Apparently all those newspaper articles telling Americans we are fat are beginning to have an effect.
“For two consecutive quarters, Papa John’s International, Inc. (Nasdaq: PZZA) has posted decreases in domestic sales at both company-owned restaurants and franchised locations. Recently released earnings report for 2Q 2007 stated U.S. pizza sales at Papa John’s restaurants declined 1%. That’s not enough to cause undue worry, but the company is also being squeezed by rising labor, utility, distribution and commodity costs. Revenues were up 6% to $256.3 million and EPS were $0.23, above analysts’ expectations. But that amount is still half of what the company posted in 2Q 2006. In what is beginning to look like a disturbing pattern, revenues from the previous two quarters have increased while EPS has declined by 33%. In 2Q 2007, revenues increased due only to the acquisitions of 73 new locations. There was NO organic growth,” said the story.