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[LOGO OF PAPA JOHN'S PIZZA]
Contact: D. Ross Davison
Chief Financial Officer and Treasurer
(205) 981-2823
PJ AMERICA ANNOUNCES 3rd QUARTER 2000 PROJECTED EARNINGS
Birmingham, Alabama, August 28, 2000
PJ America, Inc. (NASDAQ: PJAM), the largest franchisee of Papa John's
International, Inc. announced today that it anticipates that its earnings for
the third quarter ending September 24, 2000 will be significantly below
expectations. For the July and August periods of the third quarter, comparable
store sales were negative 1.1%. The company has been aggressive in discounting
to increase trial; however, aggregate sales have been below expectations. The
combination of deeper discounts and negative same store sales has significantly
pressured operating margins. Consequently, based on July and August preliminary
operating results, third quarter performance will be significantly below
expectations. The company expects its third quarter earnings to be in the range
of $.08 to $.12 cents per share.
The Company's President and C.E.O., Doug Stephens, said, "Our sales to date
in the third quarter have been significantly less than expectations based on the
additional discounting and advertising that we have done. We are currently
analyzing our marketing strategies and expect to decrease our discounting going
forward."
This information contains forward-looking statements within the meaning of
Section 27A of The Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking statements
reflect management's expectations based upon currently available information and
data; however, actual results are subject to future events and uncertainties,
which could cause actual results to materially differ from those projected in
these statements. Factors that can cause actual results to materially differ
include: additional unforeseen costs, expenses which may be incurred with
respect to the change of the Papa John's slogan as a result of Papa John's
International, Inc.'s litigation with Pizza Hut, Inc.; increased advertising,
promotions and discounting by competitors which may adversely affect sales; the
ability of the Company to open new restaurants and operate new and existing
restaurants profitably; increases in food, labor, employee benefits and similar
costs;
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economic and political conditions in the territories in which the Company
operates; and new product and concept development by food industry competitors.
Further information regarding factors that could affect the Company's financial
and other results is included in the Company's forms 10-Q and 10-K, filed with
the Securities and Exchange Commission.
