Check out our latest publication on Papa John's which is an American pizza restaurant franchise founded by John Schnatter. It is the fourth largest pizza delivery restaurant chain in the United States, and is headquartered in Jeffersontown, Kentucky, a suburb of Louisville.
Check out the SWOT and PESTLE analysis on Papa John's- https://www.swotandpestle.com/papa-johns/
The analysis covers the business strategy of Papa John's.
We appreciate Sushree Lasyamayee's contribution towards this research report.
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3. Papa John’s restaurant chain operates or
franchises pizza delivery and take outs
globally under the trademark Papa
John’s.
Papa John’s has been voted “Best
Pizza” in more than 100 US markets
during the last several years.
Its USP lies in being the third
largest pizza chain in the world.
It has over 4,893 pizzerias across
the US and 39 international
markets.
About
5. Strength Weakness
1. Quality focused and differentiated brand.
2. Diversified business model for profitability.
3. Leader in attractive global pizza market.
4. Differentiated platform enhancing customer
value.
1. Negative publicity and consumer sentiment
arising in late 2017.
2. Dependence on few suppliers for some
ingredients.
3. Limited influence over the franchisees’
operations.
Opportunity Threat
1. Long term domestic and international
growth opportunities.
2. Offering diverse menu with healthy options.
1. Highly competitive Quick service
Restaurant Pizza industry.
2. Price fluctuations of the raw materials.
3. Impact of outbreak of COVID-19.
SWOT ANALYSIS
6. STRENGTH #1
In 2018, it was rated #1 for product and
service quality among national pizza
chains in the American Customer
satisfaction Index
In fact, it is rated #1 in customer
satisfaction among national pizza chains
by consumers for 17 out pf the past 19
years
Strong brand recognition
Quality focused and differentiated brand.
7. STRENGTH #1
It uses fresh, never frozen dough, fresh
packed pizza sauce, high protein flour.
It has a clean label which mentions no MSG,
no high fructose corn syrup, no BHA, no
BHT, cage free eggs and other certain
ingredients
Ensuring high quality
Quality focused and differentiated brand.
8. Diversified business model for profitability
The company also maintains disciplined capital allocation
and commitment to return capital to shareholders
The company works in 3 diversified, capex-light royalty
streams complementing highly profitable company-owned
units.
STRENGTH #2
9. Diversified business model for profitability
It enjoys a track record of achieving
strong margins and free cash flow.
The significant cash flow is generated
from company owned restaurants,
domestic royalties, PJ food service
income and international royalty and
fees
In 2018, the full year cash flow was
$30.8 million. The dividends were
declared at $0.225 per quarter for
common shareholders.
STRENGTH #2
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