Papa Johns Reached $4.8 Billion in Systemwide Sales and 5,650 Stores in 2021

This is an English adaptation of a FoodBud historical article originally published on February 28, 2022.

Papa Johns reported fourth-quarter and full-year results on February 24, covering the period ended December 26, 2021.

For Q4, revenue reached $530 million, up 12.6% year on year. Full-year revenue was $2.07 billion, up 14.1%.

Systemwide sales reached $1.2 billion in Q4, up 13.1%, and $4.8 billion for the full year, up 15.4%.

Store Growth

As of December 26, 2021, Papa Johns had added 250 net new stores for the year, including 200 net new stores in international markets and 50 in North America.

The brand ended the year with 5,650 stores across 50 countries and regions. Gross openings reached a record 389 stores, offset by 139 closures.

On the earnings call, CEO Robert Lynch said the average annual unit volume in North America rose 12% year on year to $1.1 million.

Digital and Loyalty

In the U.S. market, Papa Johns had a high digital mix in 2021. Orders placed through its website, app and other digital channels accounted for 75% of total orders.

By the end of 2021, the brand had nearly 23 million loyalty members, up from 17 million in 2020 and 12 million in 2019.

Development Agreements

In August 2021, Papa Johns signed an agreement with its largest franchisee, Drake Food Service International, to open 220 stores by 2025 across Latin America, Spain and Portugal.

In September 2021, it signed an agreement with Sun Holdings to open 100 stores by 2029 in Texas and other southern U.S. markets.

In January 2022, Papa Johns announced a deal with FountainVest Partners. Under the agreement, FountainVest would open more than 1,350 stores in southern China by 2024. The company described it as the largest deal in its history.

Papa Johns expected to add 260 to 300 net new stores in 2022.

Domino's Comparison Data

Domino's Pizza also released business data in January 2022:

• Domino's had 18,380 stores globally, with 98% franchised, across more than 90 countries.
• The U.S. market had 6,471 stores, while international markets had 11,909 stores.
• In the U.S., 57% of the business came from delivery.
• Domino's had more than 29 million active loyalty members.
• More than 75% of its U.S. business came through digital channels.
• Domino's estimated its U.S. growth potential at more than 8,000 stores.
• Internationally, Domino's saw China as the largest potential market, followed by India and Japan.
• Domino's had 389 stores in China, 1,435 in India and 842 in Japan.

Domino's continued to increase its focus on China. In Q2 2020, it invested $40 million in Dash Brands, its franchisee for China.

In early 2021, Domino's CFO said the company had 360 stores in China and could eventually reach 1,000. He also said Domino's believed China could, over the long term, become its second-largest market after the U.S. Market rumors had previously suggested that Dash Brands planned to list in Hong Kong.

Note: Forward-looking store targets, potential market sizes, investment figures and IPO-related references are historical statements from the 2022 source article.