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Papa John’s Reports Sales Record for Second Straight Month

By Rich Duprey – May 27, 2020 at 8:54AM

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Innovation has kept customers coming back for more.

Because the COVID-19 pandemic limited restaurant business to carryout and delivery, we knew those companies that specialized in those forms of service would benefit. Papa John's International (PZZA 4.91%) showed just what that meant to its business.

The global pizza chain announced for the second straight month that it had notched its best sales growth ever, recording 33% increases in comparable store sales. That comes on top of its previous record of 27% set just last month.

Man making pizza delivery

Image source: Getty Images.

Coming back for more

Papa John's president and CEO Rob Lynch said the pizza joint already had a tailwind behind it before the coronavirus outbreak, but the nationwide lockdown orders accelerated its growth as it innovated to meet the challenges of the crisis.

"The success of 'No Contact Delivery' and new products like Papadias -- both examples of a new culture of innovation at Papa John's -- continue to drive results," Lynch said in a statement.

Comps surged 35.1% at franchised stores in North America for the period between April 27 and May 24, up from 28.4% between March 30 and April 26. Similarly, comps at company-owned stores were up 28.3% and 22%, respectively.

Papa John's saw a massive increase in international sales as well, with comps up 7% in the current period compared to a 1% increase one month ago.

Almost all of the pizzeria's North American stores have remained open during the pandemic while just 320 of Papa John's 2,100 international locations were closed. Some of those stores that remained open abroad, mostly in the U.K., were only permitted to offer consumers delivery service.

 

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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