Papa John's International Inc (PZZA)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	102,972	82,192	146,009	72,680	4,255
Revenue	US$ in thousands	2,145,070	2,088,400	2,068,420	1,813,230	1,619,250
Pretax margin		4.80%	3.94%	7.06%	4.01%	0.26%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $102,972K ÷ $2,145,070K
= 4.80%

The pretax margin of Papa John's International Inc. has shown fluctuations over the past five years, ranging from 0.31% in 2019 to 7.30% in 2021. In 2023, the pretax margin increased to 4.85% compared to 3.99% in 2022. The improvement in the pretax margin from 2022 to 2023 indicates increased profitability before accounting for taxes. It is essential for the company to sustain or further enhance this margin to ensure efficient cost management and revenue generation.