Papa John's International (Papa John's International) Interest Coverage

: 3.94 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Papa John's International's Operating Income for the three months ended in Dec. 2023 was $46 Mil. Papa John's International's Interest Expense for the three months ended in Dec. 2023 was $-12 Mil. Papa John's International's interest coverage for the quarter that ended in Dec. 2023 was 3.94. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Papa John's International's Interest Coverage or its related term are showing as below:

PZZA' s Interest Coverage Range Over the Past 10 Years
Min: 0.96 Med: 7.98 Max: 29.09
Current: 3.56

PZZA's Interest Coverage is ranked worse than
67.58% of 256 companies
in the Restaurants industry
Industry Median: 6.76 vs PZZA: 3.56

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Papa John's International Interest Coverage Historical Data

The historical data trend for Papa John's International's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Papa John's International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

0.96

5.65

9.73

6.23

3.59

Papa John's International Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																7.67	4.19	3.27	2.96	3.94

Competitive Comparison

For the Restaurants subindustry, Papa John's International's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Papa John's International Interest Coverage Distribution

For the Restaurants industry and Consumer Cyclical sector, Papa John's International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Papa John's International's Interest Coverage falls into.

Papa John's International Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Papa John's International's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Papa John's International's Interest Expense was $-43 Mil. Its Operating Income was $156 Mil. And its Long-Term Debt & Capital Lease Obligation was $933 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	156.157	/	-43.469
	=	3.59

Papa John's International's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Papa John's International's Interest Expense was $-12 Mil. Its Operating Income was $46 Mil. And its Long-Term Debt & Capital Lease Obligation was $933 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	46.486	/	-11.795
	=	3.94

The higher the ratio, the stronger the company's Financial Strength is.

Papa John's International (NAS:PZZA) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Papa John's International Interest Coverage Related Terms

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Papa John's International (Papa John's International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Papa John's International Inc (NAS:PZZA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PP1:Germany

Address

2002 Papa John's Boulevard, Louisville, KY, USA, 40299-2367

Website

https://www.papajohns.com

Papa John's is one of the largest players in the global QSR pizza market, boasting more than 5,700 restaurants across nearly 50 countries at the end of 2022. The firm operates a predominantly franchised system, owning just shy of 10% of its restaurants and generating revenue from franchise royalties, sales of pizza, and related products at its company-owned stores, and sales from its commissary supply chain. The firm is the third-largest limited-service pizza chain in the U.S. and fourth-largest globally, with a sizable presence in the U.K., China, South Korea, and Chile.

Executives

John W Garratt	director	100 MISSION RIDGE, GOODLETTSVILLE TN 37072
Stephen L Gibbs	director	C/O SCIENTIFIC GAMES CORPORATION, 1500 BLUEGRASS LAKES PARKWAY, ALPHARETTA, GA 30004
John C Miller	director
Ravi Thanawala	officer: Chief Financial Officer	788 CIRCLE 75 PARKWAY, ATLANTA GA 30339
Christopher K Collins	officer: VP, Treasury and Tax	788 CIRCLE 75 PARKWAY, ATLANTA GA 30339
Marvin Boakye	officer: Chief People Officer	PO BOX 99900, LOUISVILLE KY 40269
Olivia F Kirtley	director	6655 LANCER BLVD, SAN ANTONIO TX 78219
Robert Lynch	director, officer: President and CEO	P. O. BOX 99900, LOUISVILLE KY 40269
Jack H Swaysland	officer: SVP, COO - International	PO BOX 99900, LOUISVILLE KY 40269
Jeffrey C Smith	director	201 E LAS OLAS BOULEVARD, SUITE 1000, FORT LAUDERDALE FL 33301
James Norberg	officer: SVP, CROO	PO BOX 99900, LOUISVILLE KY 40269
Caroline Miller Oyler	officer: SVP, General Counsel	P.O. BOX 99900, LOUISVILLE KY 40269
Ann B Gugino	officer: Chief Financial Officer	1031 MENDOTA HEIGHTS ROAD, ST. PAUL MN 55120
Steven R Coke	officer: VP, IR and Strategy	P.O. BOX 99900, LOUISVILLE KY 40269
Amanda Clark	officer: Chief Development Officer	PO BOX 99900, LOUISVILLE KY 40269