LOUISVILLE, Ky. (AP) — Pizza company Papa John’s International Inc. on Tuesday said it expects net income of $2 to $2.12 per share in 2011. Analysts surveyed by Thomson Reuters, on average, expect net income of $2.03 per share.
The guidance is a 16 percent increase from the $1.74 to $1.80 per share that it expects in 2010. Analysts expect $1.77 per share in 2010. The 2010 guidance excludes the effect of the consolidation of the franchisee-owned cheese-buying company BIBP Commodities Inc. Beginning in 2011, that consolidation will no longer meaningfully affect net income.
Papa John’s expects revenue in stores open at least one year to rise 1.5 percent to 2 percent domestically and 1 percent to 3 percent internationally. That measure is a key gauge of a restaurant company’s financial health because it excludes restaurants that open or close during the year.
Papa John’s plans to open 190 to 220 stores, including 85 to 100 stores in North America and 105 to 120 openings internationally.
The company plans to shift management responsibility for Hawaii, Alaska and Canada from its international segment to its domestic one, beginning in the first quarter. The move will shift about $1.4 million of operating income from its international business segment to the North America Franchising business segment in 2011.
Shares rose 43 cents to $27.35 in midday trading.