Papa John’s Announces First Quarter Results

Press Release Source: Papa John’s International, Inc. 22:00, Tuesday 3 May 2011

EPS Increased 18.5% over Prior Year Pro Forma Results on Strong Comparable Sales of 6.1% for and 5.6% for International

Papa John’s International, Inc. :

First quarter earnings per diluted share of $0.64 in 2011 vs. pro forma results of $0.54 in 2010 (excluding the impact of franchisee-owned BIBP cheese purchasing entity) First quarter earnings per diluted share of $0.64 in 2011 vs. $0.62 in 2010 System-wide comparable sales increased 6.1% for and increased 5.6% for International Global restaurant sales increase of 11% over the corresponding 2010 quarter 41 worldwide net unit openings during the quarter Earnings guidance for 2011 updated to a range of $2.02 to $2.12; comparable sales guidance for increased to a range of 2.0% to 3.0%

Papa John’s International, Inc. this day announced revenues of $312.5 million for the first quarter of 2011, compared to revenues of $285.8 million in the first quarter of 2010. Net income for the first quarter of 2011 was $16.4 million, or $0.64 per diluted share, compared to 2010 first quarter net income of $16.9 million, or $0.62 per diluted share (2010 results include after-tax income of $2.2 million, or $0.08 per diluted share, from the consolidation of the results of the franchisee-owned cheese purchasing company, BIBP Commodities, Inc. (“BIBP”), a variable interest entity). See “” for additional information regarding BIBP.

“We are extremely pleased with our first quarter results,” commented Papa John’s Founder, Chairman and Chief Executive Officer, John Schnatter. “In addition to posting what we believe to be industry leading 6.1% n comps during the quarter, this marks the eighth consecutive quarter of positive n transaction growth for the Papa John’s system. Our international operators also posted outstanding 5.6% positive comp sales, in our first quarter for reporting international comps. I congratulate both our corporate and franchise operators on these tremendous results.”

Schnatter continued: “Since my return to the business as CEO in December 2008, we have cultivated a management team that is committed, solid and deep in experience. I believe this team is well equipped to continue our momentum, and lead us through our next phase of both n and international growth.”

Certain financial measures we present in this press release exclude the impact of the consolidation of BIBP, which is not a measure that is defined in accordance with accounting principles generally accepted in the United States (“GAAP”). These non-GAAP measures should not be construed as a substitute for or a better indicator of the company’s performance than the company’s GAAP measures. Management believes presenting the 2010 financial information on a pro forma basis excluding the impact of BIBP is important for purposes of comparison to current year results. The presentation of the non-GAAP measures in this press release is made alongside the most directly comparable GAAP measures.

As previously announced, we terminated our cheese purchasing agreement with BIBP. In order to facilitate the transition to PJ Food Service (“PJFS”), a wholly-owned subsidiary of the Company, BIBP operated for the first two months of 2011 at breakeven. Over 99% of our franchisees in the United States have entered into a cheese purchasing agreement directly with PJFS. The cheese purchasing agreement specifies that PJFS will charge the franchisees a predetermined price for cheese on a monthly basis. Each franchisee committed to buy cheese through PJFS, or to pay the franchisee’s pro rata portion of any accumulated cheese liability upon ceasing to buy cheese from PJFS, when a cheese liability exists. Accordingly, PJFS records a receivable from or payable to the franchisees depending on the difference between the actual market price and established sales price for cheese at the time of purchase.

The company has provided the following table to reconcile the pro forma financial results we present in this press release excluding the impact of BIBP to our GAAP financial measures for the first quarters ended March 27, 2011 and March 28, 2010.

First Quarter Mar. 27, Mar. 28, (In thousands, except per share amounts) 2011 2010 Pre-tax income, net of noncontrolling interests, as reported $ 25,658 $ 25,840 Pre-tax income from BIBP cheese purchasing entity – (3,485 )

Pre-tax income, net of noncontrolling interests, excluding BIBP

$ 25,658 $ 22,355 Net income, as reported $ 16,427 $ 16,875 Net income from BIBP cheese purchasing entity – (2,213 ) Net income, excluding BIBP $ 16,427 $ 14,662 Earnings per diluted share, as reported $ 0.64 $ 0.62 Income from BIBP cheese purchasing entity – (0.08 ) Earnings per diluted share, excluding BIBP $ 0.64 $ 0.54 Cash flow from operations, as reported $ 25,565 $ 26,013 Net cash flows from BIBP cheese purchasing entity – (3,485 ) Cash flow from operations, excluding BIBP $ 25,565 $ 22,528

In this press release, we refer to global restaurant sales, representing global company-owned and franchised restaurant sales. We also refer to comparable sales growth, representing the change in year-over-year sales for the same base of restaurants for the same calendar period. Management believes global restaurant sales information is useful in examining our results because our franchisees pay royalties that are based on a percentage of franchise sales, and franchise sales generate commissary revenue in the United States and in certain international markets. Global restaurant sales and comparable sales growth information is also useful in examining industry trends and the strength of our brand. Franchise restaurant sales are not included in company revenues.

The following table reflects our global restaurant sales and comparable sales growth (decline) in both the first quarter of 2011 and 2010:

Global restaurant sales growth 11.0 % 1.8 %

Global restaurant sales growth, excluding the impact of currency conversion

10.7 % 1.1 % Comparable sales growth (decline) company-owned restaurants 6.7 % (1.8 %) franchised restaurants 5.9 % 0.2 % System-wide restaurants 6.1 % (0.3 %) System-wide international restaurants 5.6 % (0.7 %)

Comparable sales results for restaurants operating outside the United States are reported on a constant dollar basis, which excludes the impact of currency conversion.

As this is our first quarter of announcing system-wide international comparable sales results, the following prior year results are presented for informational purposes:

System-wide International Comparable Sales

Q1 – 2010 (0.7 %) Q2 – 2010 0.2 % Q3 – 2010 5.5 % Q4 – 2010 5.5 % Full Year – 2010 2.6 %

Beginning in 2011, we realigned management responsibility and financial reporting for the 70 franchised restaurants currently operating in Hawaii, Alaska and Canada from our International business segment to Franchising (previously named “Domestic franchising”) in order to better leverage existing infrastructure and systems. Certain prior year amounts have been reclassified in our Consolidated Statements of Income and in our segment information for consistent presentation with the current year results.

Consolidated revenues were $312.5 million for the first quarter of 2011, an increase of $26.7 million, or 9.3%, over the corresponding 2010 period. The increase in revenues for the first quarter of 2011 was primarily due to the following:

Domestic company-owned restaurant sales increased $9.0 million, or 7.0%, reflecting an increase of 6.7% in comparable sales during the first quarter of 2011. An increase in customer traffic during the first quarter of 2011 was partially offset by a decrease in the average ticket spend as a result of increased levels of discounting, as compared to the first quarter of 2010. franchise royalty revenue increased $1.7 million, or 9.3%, primarily due to a 5.9% increase in comparable sales and an increase in net franchise units over the prior year. The impact of the royalty rate increase to 5.0% (0.25% increase over 2010) was substantially offset by the franchisees’ capability to earn up to a 0.25% royalty rebate by meeting certain sales growth targets and an additional 0.20% royalty rebate by making specified re-imaging restaurant lobby investments as part of the previously announced National Marketing Fund Agreement. Domestic commissary sales increased $15.0 million, or 13.3%, due to an increase in the volume of sales and increases in the prices of certain commodities. International revenues increased $2.0 million, or 18.8%, primarily due to an increase in the number of restaurants in addition to a 5.6% increase in comparable sales, calculated on a constant dollar basis. This increase was partially offset by the prior year including revenues from company-owned restaurants located in the United Kingdom, which were sold in the third quarter of 2010. These increases were partially offset by a $1.1 million, or 7.3%, decrease in other sales primarily resulting from a decline in sales at our print and promotions subsidiary, Preferred Marketing Solutions, and an on-line fee reduction in connection with the new National Marketing Fund Agreement.

and

Our pre-tax income, net of noncontrolling interests, for the first quarter of 2011 was $25.7 million, compared to $25.8 million for the corresponding quarter in 2010 ($22.3 million in the first quarter of 2010, excluding the impact of BIBP, as shown in the previous table). The first quarter 2011 pre-tax income results, net of noncontrolling interests, increased $3.3 million, or 14.8%, over the comparable 2010 results (excluding the impact of BIBP). An analysis of the changes in pre-tax income, net of noncontrolling interests, excluding the impact of BIBP, for the first quarter of 2011 compared to the comparable 2010 results is 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 was $10.9 million for the first quarter of 2011, as compared to $11.4 million in the comparable 2010 period. The decrease of approximately $600,000 in the first quarter of 2011 was primarily due to increased commodity and advertising costs. The increased costs were partially offset by the profits from higher comparable sales, which were driven primarily by higher transaction levels slightly offset by a lower average ticket price.

Restaurant operating margin as externally reported was 20.4% for the first quarter of 2011, compared to 22.8% for the comparable 2010 period. Excluding the impact of the consolidation of BIBP, restaurant operating margin in the first quarter of 2010 was 22.1%. The decline in margin was the result of the same factors that contributed to the decrease in domestic company-owned restaurants’ operating income.

Domestic Commissary Segment. Domestic commissaries’ operating income increased approximately $2.4 million for the first quarter primarily due to increased sales volumes, partially offset by an increase in distribution costs due to higher volumes and fuel prices. Franchising Segment. Franchising operating income increased approximately $1.7 million to $18.0 million for the first quarter of 2011, as compared to the comparable 2010 period. The increase was due to the previously mentioned royalty revenue increases, partially offset by the royalty rebates described above. International Segment. The operating loss during the first quarter of 2011 for the international segment was approximately $800,000 as compared to a loss of $1.5 million in the first quarter of 2010. The improvement of approximately $700,000 in the operating results was primarily due to increased royalties due to growth in the number of units and the 5.6% increase in comparable sales. Additionally, the prior year results included start-up costs associated with our company-owned commissary in the United Kingdom that opened during 2010. All Others Segment. The “All others” reporting segment reported a loss of approximately $400,000 in 2011 as compared to income of approximately $900,000 in 2010. The decrease of $1.3 million was primarily due to a decline in the operating results of Preferred Marketing Solutions and our on-line ordering (“eCommerce”) business. The Preferred Marketing Solutions decrease was due to the previously noted reduction in sales. Our eCommerce operations had both lower revenues, due to a reduction in the on-line ordering fee charged to domestic franchised restaurants (the fee was reduced by 0.5% in 2011 as part of the National Marketing Fund Agreement), and an increase in infrastructure and support costs attributable to the new on-line ordering system introduced in the fourth quarter of 2010. Unallocated Corporate Segment. Unallocated corporate expenses decreased approximately $1.1 million for the first quarter of 2011 as compared to the first quarter of 2010. The components of unallocated corporate expenses were as follows (in thousands): First Quarter Mar. 27, Mar. 28, Increase 2011 2010 (decrease) General and administrative $ 7,385 $ 6,655 $ 730 Net interest 431 904 (473 ) Depreciation 2,178 2,165 13 Franchise support initiatives (c) – 1,250 (1,250 )

Provision for uncollectible accounts and notes receivable

32 315 (283 ) Other income (257 ) (459 ) 202 Total unallocated corporate expenses $ 9,769 $ 10,830 $ (1,061 )

Unallocated general and administrative costs increased primarily due to increased travel costs.

The decrease in net interest expense reflects the decrease in our average outstanding debt balance and lower interest rates as our two interest rate swap agreements expired in January 2011.

(c) In 2010, franchise support initiatives primarily consisted of discretionary contributions to the national marketing fund and other local advertising cooperatives. We have not made any discretionary contributions during 2011 and have instead offered various incentives that can be earned in connection with the National Marketing Fund Agreement. The financial impact of such incentives is reflected in the Franchising segment.

The effective income tax rate was 34.5% for the first quarter of 2011, as compared to 33.3% for the first quarter of 2010 (32.8%, excluding BIBP, for the first quarter of 2010). Our effective income tax rate may fluctuate from quarter to quarter for various reasons, including settlement or resolution of specific federal and say issues.

Net cash provided by operating activities was $25.6 million for the first quarter of 2011 as compared to $26.0 million for the first quarter of 2010. The consolidation of BIBP increased cash flow from operations by approximately $3.5 million in the first quarter of 2010. Excluding the impact of the consolidation of BIBP, cash flow from operations was $25.6 million in the first quarter of 2011 compared to $22.5 million in the first quarter of 2010. The increase of approximately $3.0 million was primarily due to higher net income and favorable working capital changes.

Our net debt position, defined as total debt less cash and cash equivalents, was $34.3 million at March 27, 2011, compared to $52.8 million at December 26, 2010.

See the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission for additional information concerning our operating results and cash flow for the three-month period ended March 27, 2011.

National Marketing Fund Agreement

As previously announced, in 2010 we reached an agreement with our U.S. franchisees for a multi-year national marketing fund contribution rate (4.0% for 2011), which included: (i) PJFS’s agreement to pay BIBP for prior buys of cheese in an amount equal to its accumulated deficit of approximately $14.2 million at December 26, 2010; (ii) the opportunity for franchisees to earn quarterly rebates of a portion of the 5.0% royalty upon achieving certain sales growth targets and by making specified re-image investments in their restaurants; and (iii) an concurred reduction in the on-line ordering fee of 0.5% in 2011. We anticipate this agreement to represent a shift or a slight increase in total marketing spend, and believe an increase in marketing spend on a national basis will improve the consistency of the overall marketing message and favorably impact brand awareness.

Global Restaurant Unit Information

At March 27, 2011, there were 3,687 Papa John’s restaurants (613 company-owned and 3,074 franchised) operating in all 50 says and in 32 countries. The company-owned restaurants include 127 restaurants operating in majority-owned domestic joint venture arrangements, the operating results of which are fully consolidated into the company’s results. Our development pipeline as of March 27, 2011 included approximately 1,450 restaurants (375 units in and 1,075 units internationally), the majority of which are scheduled to open over the next six years.

The company repurchased approximately 143,000 shares of its common stock at an average price of $28.81 per share, or a total of $4.1 million, during the first quarter of 2011. Approximately $32.7 million remained available under the company’s share repurchase program as of March 27, 2011. A total of 63,000 shares of common stock were issued upon the exercise of stock options for the first quarter of 2011.

The company utilizes a written trading plan under Rule10b5-1 under the Securities Exchange Act of 1934, as amended, to facilitate the repurchase of shares of our common stock under this share repurchase program. There can be no assurance that we will repurchase shares of our common stock either through our Rule10b5-1 trading plan or otherwise. We may terminate the Rule10b5-1 trading plan at any time.

There were 25.8 million diluted weighted average shares outstanding for the first quarter of 2011, as compared to 27.2 million for the same period in 2010, a 5.1% decrease. Approximately 25.5 million actual shares of the company’s common stock were outstanding as of March 27, 2011.

The company is updating its previously issued diluted earnings per share guidance range of $2.00 to $2.12, to a range of $2.02 to $2.12 for 2011. In updating its guidance, the company noted that its solid first quarter results are expected to substantially mitigate the unfavorable impact of projected commodity cost increases, most notably cheese, as well as increased fuel costs, throughout the remainder of the year. The company also noted that certain management transition costs are not expected to have a negative impact on full-year 2011 results, but are expected to impact earnings per share by $0.02 to $0.03 in the second quarter. The comparable sales increase range for is being updated from a range of 1.5% to 2.5% to a range of 2.0% to 3.0% in response to solid first quarter sales results. We continue to project full-year international comparable sales increases of a range of 1% to 3%, and project worldwide net restaurant openings of 190 to 220 restaurants.

Certain matters discussed in this press release and other company communications constitute forward-looking statements within the meaning of the federal securities laws. Generally, the use of words such as “expect,” “estimate,” “believe,” “anticipate,” “will,” “forecast,” “plan,” project,” or similar words identify forward-looking statements that we intend to be included within the safe harbor protections provided by the federal securities laws. Such statements may relate to projections concerning revenue, earnings, margins, unit growth and other financial and operational measures. Such statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond our control. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements.

The risks, uncertainties and assumptions that are involved in our forward-looking statements include, but are not limited to: changes in pricing or other marketing or promotional strategies by competitors which may adversely affect sales, including an increase in or continuation of the current aggressive pricing and promotional environment; new product and concept developments by food industry competitors; the capability of the company and its franchisees to meet planned growth targets and operate new and existing restaurants profitably; general economic conditions and resulting impact on consumer buying habits; changes in consumer preferences; increases in or sustained high costs of food ingredients and other commodities, paper, utilities, fuel, employee compensation and benefits, insurance and similar costs (including the impact of federal health care legislation); the capability of the company to pass along increases in or sustained high costs to franchisees or consumers; the impact of current or future legal claims and current or proposed legislation impacting our business; the impact that product recalls, food quality or safety issues, and general public health concerns could have on our restaurants; currency exchange and interest rates; and increased risks associated with our international operations, including economic and political conditions in our international markets and difficulty in meeting planned sales targets for our international operations. These and other risk factors are discussed in detail in “Part I. Item 1A. – Risk Factors” of the Annual Report on Form 10-K for the fiscal year ended December 26, 2010. We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.

A conference call is scheduled for May 4, 2011 at 10:00 a.m. Eastern Daylight Time to review our first quarter earnings results. The call can be accessed from the company’s web page at www.papajohns.com in a listen-only mode, or dial 877-312-8816 (pass code 60254770) for participation in the question and answer session. International participants may dial 253-237-1189 (pass code 60254770).

The conference call will be available for replay, including by downloadable podcast, beginning May 4, 2011, at approximately noon Eastern Daylight Time, through May 8, 2011, at midnight Eastern Daylight Time. The replay can be accessed from the company’s web site at www.papajohns.com or by dialing 800-642-1687 (pass code 60254770). International participants may dial 706-645-9291 (pass code 60254770).

Summary Financial Data Papa John’s International, Inc. (Unaudited) First Quarter Mar. 27, Mar. 28, (In thousands, except per share amounts) 2011 2010 Revenues $ 312,467 $ 285,786

Income before income taxes, net of noncontrolling interests*

$ 25,658 $ 25,840 Net income $ 16,427 $ 16,875 Earnings per share – assuming dilution $ 0.64 $ 0.62

Weighted average shares outstanding – assuming dilution

27,154 EBITDA (1) $ 34,401 $ 34,733 *The following is a summary of our income (loss) before income taxes, net of noncontrolling interests: First Quarter Mar. 27, Mar. 28, (in thousands) 2011 2010 Domestic company-owned restaurants $ 10,883 $ 11,445 Domestic commissaries 9,554 7,148 Franchising (2) 18,009 16,351 International (2) (816 ) (1,532 ) All others (378 ) 949 Unallocated corporate expenses (9,769 ) (10,830 ) Elimination of intersegment profit (703 ) (87 ) Income before income taxes, excluding BIBP 26,780 23,444 BIBP, a variable interest entity (3) – 3,485 Less: noncontrolling interests (1,122 ) (1,089 )

Total income before income taxes, net of noncontrolling interests

$ 25,658 $ 25,840 Summary Financial Data (continued) Papa John’s International, Inc. (Unaudited) The following is a reconciliation of EBITDA to net income (in thousands): First Quarter Mar. 27, Mar. 28, 2011 2010 EBITDA (1) $ 34,401 $ 34,733 Income tax expense (9,231 ) (8,965 ) Net interest (431 ) (1,013 ) Depreciation and amortization (8,312 ) (7,880 ) Net income $ 16,427 $ 16,875 The company’s free cash flow for the first quarter of 2011 and 2010 is as follows (in thousands): First Quarter Mar. 27, Mar. 28, 2011 2010 Net cash provided by operating activities $ 25,565 $ 26,013 Pre-tax income from BIBP cheese purchasing entity (3) – (3,485 ) Purchase of property and equipment (4,823 ) (9,125 ) Free cash flow (4) $ 20,742 $ 13,403 (1) Management thinks about EBITDA to be a meaningful indicator of operating performance from 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 capability 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 capability 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. (2) The income before income taxes for the first quarter ended March 28, 2010 for franchised restaurants operating in Hawaii, Alaska and Canada has been reclassified from International to Franchising for consistent presentation with the current year results. The impact of the reclassification was an increase of approximately $430,000 in Franchising with a corresponding decrease in the International operating segment results. (3) As previously discussed, we terminated our cheese purchasing agreement with BIBP. In order to facilitate the transition to PJFS, BIBP continued to operate for the first two months of 2011 at breakeven. In the first quarter of 2010, BIBP reported pre-tax income of $3.5 million, which was primarily composed of income associated with cheese sold to domestic company-owned and franchised restaurants of approximately $840,000 and $2.8 million, respectively, partially offset by interest expense on outstanding debt with Papa John’s. (4) Free cash flow is defined as net cash provided by operating activities (from the consolidated statements of cash flows) excluding the impact of BIBP, less the buy of property and equipment. We view free cash flow as an important measure because it is one factor that management uses in determining the amount of cash available for discretionary investment. Free cash flow is not a term defined by GAAP and as a result our measure of free cash flow might not be comparable to similarly titled measures used by other companies. Free cash flow should not be construed as a substitute for or a better indicator of the company’s performance than the company’s GAAP measures.

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 March 27, 2011 March 28, 2010 (In thousands, except per share amounts) (Unaudited) (Unaudited) Revenues: : Domestic company-owned restaurant sales $ 138,671 $ 129,644 Franchise royalties 19,731 18,045 Franchise and development fees 185 205 Domestic commissary sales 127,672 112,640 Other sales 13,447 14,513 International: Royalties and franchise and development fees 3,762 3,166 Restaurant and commissary sales 8,999 7,573 Total revenues 312,467 285,786 Costs and expenses: Domestic Company-owned restaurant expenses: Cost of sales 32,100 27,286 Salaries and benefits 37,649 35,403 Advertising and related costs 12,789 11,404 Occupancy costs 7,869 7,840 Other operating expenses 19,915 18,190 Total domestic Company-owned restaurant expenses 110,322 100,123 Domestic commissary and other expenses: Cost of sales 106,443 95,292 Salaries and benefits 9,011 8,732 Other operating expenses 13,585 11,700 Total domestic commissary and other expenses 129,039 115,724

Income from the franchise cheese-purchasing program, net of noncontrolling interest

– (2,809 ) International operating expenses 7,728 6,776 General and administrative expenses 29,074 27,860 Other general expenses 781 2,290 Depreciation and amortization 8,312 7,880 Total costs and expenses 285,256 257,844 Operating income 27,211 27,942 Net interest expense (431 ) (1,013 ) Income before income taxes 26,780 26,929 Income tax expense 9,231 8,965 Net income, including noncontrolling interests 17,549 17,964 Less: income attributable to noncontrolling interests (1,122 ) (1,089 ) Net income, net of noncontrolling interests $ 16,427 $ 16,875 Basic earnings per common share $ 0.64 $ 0.62 Earnings per common share – assuming dilution $ 0.64 $ 0.62 Basic weighted average shares outstanding 25,484 27,038 Diluted weighted average shares outstanding 27,154

Beginning in the first quarter of 2011, we realigned financial reporting for the franchised restaurants operating in Hawaii, Alaska and Canada from our International business segment to North America Franchising. Certain prior year amounts have been reclassified for consistent presentation with the current year results.

Papa John’s International, Inc. and Subsidiaries Condensed Consolidated Balance Sheets March 27, December 26, 2011 2010 (Unaudited) (Note) (In thousands) Assets Current assets: Cash and cash equivalents $ 13,744 $ 46,225 Accounts receivable, net 28,325 25,357 Inventories 17,430 17,402 Prepaid expenses 10,333 10,009 Other current assets 3,647 3,732 Deferred income taxes 7,691 9,647 Total current assets 81,170 112,372 Investments 1,809 1,604 Net property and equipment 182,724 186,594 Notes receivable, net 16,171 17,354 Goodwill 75,290 74,697 Other assets 23,640 23,320 Total assets $ 380,804 $ 415,941 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 26,751 $ 31,569 Income and other taxes 11,380 6,140 Accrued expenses 51,638 52,978 Total current liabilities 89,769 90,687 Unearned franchise and development fees 6,254 6,596 Long-term debt 48,008 99,017 Other long-term liabilities 12,219 12,100 Deferred income taxes 1,138 341 Total liabilities 157,388 208,741 Total stockholders’ equity 223,416 207,200 Total liabilities and stockholders’ equity $ 380,804 $ 415,941

The Condensed Consolidated Balance Sheet at December 26, 2010 has been derived from the audited consolidated financial statements at that date, but does not include all information and footnotes required by accounting principles generally accepted in the United States for a complete set of financial statements.

Papa John’s International, Inc. and Subsidiaries Consolidated Statements of s Three Months Ended (In thousands) March 27, 2011 March 28, 2010 (Unaudited) (Unaudited) Operating activities Net income, net of noncontrolling interests $ 16,427 $ 16,875

Adjustments to reconcile net income to net cash provided by operating activities:

Provision for uncollectible accounts and notes receivable 39 497 Depreciation and amortization 8,312 7,880 Deferred income taxes 2,664 1,901 Stock-based compensation expense 1,795 1,673 Excess tax benefit related to exercise of non-qualified stock options (107 ) (207 ) Other 43 330 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable (3,011 ) (3,247 ) Inventories (28 ) 514 Prepaid expenses (324 ) (986 ) Other current assets 85 (270 ) Other assets and liabilities 77 (645 ) Accounts payable (4,818 ) (1,205 ) Income and other taxes 5,240 7,370 Accrued expenses (487 ) (4,540 ) Unearned franchise and development fees (342 ) 73 Net cash provided by operating activities 25,565 26,013 Investing activities Purchase of property and equipment (4,823 ) (9,125 ) Purchase of investments (205 ) – Proceeds from sale or maturity of investments – 241 Loans issued (165 ) (310 ) Loan repayments 1,468 579 Other – 10 Net cash used in investing activities (3,725 ) (8,605 ) Financing activities Net repayments on line of credit facility (51,000 ) – Excess tax benefit related to exercise of non-qualified stock options 107 207 Proceeds from exercise of stock options 1,314 3,933 Acquisition of Company common stock (4,119 ) (5,269 ) Noncontrolling interests, net of contributions and distributions (607 ) 909 Other (10 ) (10 ) Net cash used in financing activities (54,315 ) (230 ) Effect of exchange rate changes on cash and cash equivalents (6 ) (84 ) Change in cash and cash equivalents (32,481 ) 17,094 Cash and cash equivalents at beginning of period 46,225 25,457 Cash and cash equivalents at end of period $ 13,744 $ 42,551 Restaurant Progression Papa John’s International, Inc. First Quarter Ended March 27, 2011 Corporate Franchised

Int’l

Int’l Total Papa John’s restaurants Beginning of period 591 21 2,346 688 3,646 Opened 1 – 32 23 56 Closed – – (7 ) (8 ) (15 ) End of Period 592 21 2,371 703 3,687 First Quarter Ended March 28, 2010 Corporate Franchised

Int’l

Int’l Total Papa John’s restaurants Beginning of period 588 26 2,246 609 3,469 Opened 4 – 36 24 64 Closed (1 ) – (30 ) (11 ) (42 ) Acquired – 1 – – 1 Sold – – – (1 ) (1 ) End of Period 591 27 2,252 621 3,491

Corporate includes 127 majority-owned joint venture restaurants at both March 27, 2011 and March 28, 2010, which are fully consolidated.

Franchised restaurants located in Hawaii, Alaska and Canada have been reclassified from international to (66 restaurants at the beginning of 2011 and 53 restaurants at the beginning of 2010).

Papa John’s International, Inc.Lance Tucker, 502-261-4218Chief Financial Officer

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