Papa John's International Inc (PZZA)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	156,704	147,142	109,030	168,241	90,253
Revenue	US$ in thousands	2,059,390	2,135,710	2,102,100	2,068,420	1,813,230
Operating profit margin		7.61%	6.89%	5.19%	8.13%	4.98%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $156,704K ÷ $2,059,390K
= 7.61%

Papa John's International Inc's operating profit margin has shown varying trends over the past five years. In December 2020, the operating profit margin was at 4.98%, indicating that the company was generating approximately 4.98 cents of operating profit for every dollar of sales.

By December 2021, there was an improvement in the operating profit margin to 8.13%, showcasing a significant increase in profitability. The company managed to generate 8.13 cents of operating profit for every dollar of sales, reflecting improved operational efficiency or cost management.

However, in December 2022, there was a slight decline in the operating profit margin to 5.19%, suggesting potential challenges in maintaining profitability levels. This could be due to increased operating expenses, pricing pressures, or other factors impacting the company's profitability.

In December 2023 and 2024, there was a gradual improvement in the operating profit margin to 6.89% and 7.61% respectively. These improvements indicate that Papa John's International Inc was able to enhance its operational performance and profitability over these years.

Overall, the fluctuation in Papa John's International Inc's operating profit margin over the past five years suggests the company has experienced periods of both improvement and challenges in managing its operating expenses and generating profits from its core business operations. Monitoring and analyzing this metric will be crucial for assessing the company's financial health and performance in the future.