Papa John's Plans 250 Units

LOUISVILLE, KY-Pizza chain Papa John’s plans to open between 225 and 250 restaurants next year, up from this year’s target of 210 to 240 units. Executives are also predicting a same-store sales increase of between 1.5% and 2.5% year over year during 2007.

Capital expenditures are forecast to come in at $50 million next year, one-third of which is going toward the opening of company-owned restaurants. The rest of those dollars will go toward cost-reduction measures and maintenance capital for its existing units.

The new-store openings will be split 50-50 between domestic and foreign markets. The new units represent 4% to 5% US growth and 30% to 35% international expansion. Papa John’s currently operates 2,994 restaurants in the US and 26 countries. About 22% of its domestic units are company owned, with the rest owned by franchisees, and management wants to increase that share to 25% in the next few years.