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Papa John’s SWOT & PESTLE Analysis

ID : 52692153| May 2020| 11 pages


Business Sector :Pizza, Pizza Delivery

Operating Geography :United States, North America, Global

About Papa John’s :

Papa John’s restaurant chain operates or franchises pizza delivery and takeouts globally under the trademark Papa John’s. Papa John’s is headquartered in Jeffersontown, Kentucky, a suburb of Louisville, employing approximately 18000 people into its franchise as of 2020. The company was founded in 1984 by ‘Papa” John Schnatter in the reformed broom closet of his father’s tavern. After becoming sufficiently popular, Papa John’s managed to open a store and by 1993, the company had seen over 500 stores mushrooming across the USA. By 1997, the popular restaurant chain had over 1500 stores. In 2002, Papa John’s became the first national pizza chain to make online ordering available to all of its US customers, influencing other restaurant chains. The company derives its revenues essentially from retail sales of pizza and an assortment of side items, including breadsticks, cheese sticks, chicken poppers and beverages. Papa John’s has been voted “Best Pizza” in more than 100 US markets during the last several years.

Papa John’s unique selling proposition or USP lies in being the third largest pizza chain in the world with over 4,893 pizzerias across the US and in about 39 international markets. Its mission statement reads, “At Papa John’s we work so that our customers have an unforgettable shopping experience.”

Papa John’s Revenue :

$1.61 billion – 29 Dec 2019
$1.66 billion – 30 Dec 2018

Competitive Analysis of Papa John’s

The SWOT analysis for Papa John’s is presented below in a table followed by the detailed analysis report.
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
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
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Detailed SWOT Analysis of Papa John’s


1. Quality focused and differentiated brand: Papa John’s enjoys a strong brand recognition owing to the finest quality pizzas served to the customers. 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 of the past 19 years. This just proves the magnitude of customer satisfaction that the brand enjoys. In order to ensure the high quality and clean ingredients to be used, it invests an incremental $100 million annually. It uses fresh, never frozen dough, fresh packed pizza sauce and 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 specific ingredients. It also uses gluten free crust. Such high-quality ingredients pack in their pizzas, the best value for consumers.

2. Diversified business model for profitability: The company works in 3 diversified, capex-light royalty streams complementing highly profitable company-owned units. It enjoys a track record of achieving strong margins and free cash flow. The company also maintains disciplined capital allocation and commitment to return capital to shareholders. The significant cash flow is generated from company owned restaurants, domestic royalties, PJ food service income and international royalty and fees. Papa John’s has a free cash flow of $14.01 million in FY 2019. The dividends were declared at $0.225 for first quarter in FY2020 for common shareholders.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.

Major Competitors :

  • Domino’s Pizza
  • Romeo’s Pizza
  • Donatos
  • Coca-Cola
  • VMWare
  • Pizza Hut
  • Round Table Pizza
SWOT & PESTLE (combined)
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Check Out Analysis of Other Relevant Companies

References used in Papa John’s Analysis Report

2. Investor Presentation December 2019 -
3. Pizza Industry Analysis 2020 - Cost & Trends -
4. Eat Better, Eat Less Pizza -
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Papa John’s SWOT & PESTLE Analysis - SWOT & PESTLE.COM

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In-text: (SWOT &, 2020)

Copyrights and Disclaimer

Papa John’s SWOT & PESTLE analysis has been conducted by Sushree Lasyamayee and reviewed by senior analysts from Barakaat Consulting.

Copyright of Papa John's SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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Papa John’s SWOT & PESTLE Analysis
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