PAPA JOHNS INTERNATIONAL INC

Segment Information

The following tables present the operating results of our segments. We have four reportable segments: Domestic Company-owned restaurants, North America franchising, North America commissaries, and International operations. Under ASC 280, Segment Reporting, our segment performance is evaluated based on Adjusted operating income. See the Company’s Form 10-K for the year ended December 29, 2024 for further information on segments, including reconciliations of segment measures to consolidated measures for the year-ended December 29, 2024.

(a) Costs and expenses excludes certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business.

(b)As discussed more fully in the Company’s Form 10-K, the Company prospectively adjusted for updates in internal cost allocation methodologies in 2024, which increased the amount of internal general and administrative (“G&A”) costs allocated to the reportable segments from unallocated corporate expenses. The allocation methodology updates resulted in the following increases to segment G&A in the fourth quarter of 2024: $5.7 million to the North America franchising segment and $0.8 million to the International segment. The allocation changes resulted in the following decreases to G&A in the fourth quarter of 2024: $0.1 million to the Domestic Company-owned restaurants segment and $0.3 million to the North America commissaries segment. There was no impact on overall company profitability, as the change was offset within unallocated corporate expenses.

(a)Costs and expenses excludes certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business.

(b)As discussed more fully in the Company’s Form 10-K, the Company prospectively adjusted for updates in internal cost allocation methodologies in 2024, which increased the amount of internal G&A costs allocated to the reportable segments from Unallocated corporate expenses. The allocation methodology updates resulted in the following increases to segment G&A in 2024: $0.4 million to Domestic Company-owned restaurants, $22.9 million to North America franchising, $3.3 million to International, and $0.1 million to North America commissaries. There was no impact on overall company profitability, as the change was offset within unallocated corporate expenses.