Papa John's International Inc (PZZA)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	1,871,860	1,798,020	1,776,380	1,543,020	1,340,670
Revenue	US$ in thousands	2,145,070	2,088,400	2,068,420	1,813,230	1,619,250
Gross profit margin		87.26%	86.10%	85.88%	85.10%	82.80%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,871,860K ÷ $2,145,070K
= 87.26%

The gross profit margin of Papa John's International Inc. has remained consistently at 100% from 2019 to 2023, indicating that the company is effectively managing its production and distribution costs in relation to its revenue. This means that for every dollar in sales, the company is able to retain the entirety as gross profit after accounting for the cost of goods sold.

The stability and high level of the gross profit margin suggest that Papa John's has been able to maintain a strong pricing strategy, control its production costs efficiently, or potentially have a unique competitive advantage in the marketplace. However, it is important to note that a gross profit margin of 100% may also indicate exclusivity in the products or services offered, limiting comparability to other companies in the same industry.

Overall, with a consistently high gross profit margin over the years, Papa John's International Inc. demonstrates strong cost management and operational efficiency in its core business activities.