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Papa John's International Inc. Message Board

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  • GenJackripper GenJackripper Dec 1, 1999 8:36 PM Flag

    THE WORST NEWS POSSIBLE FOR PZZA!

    (Accidentally pulled the trigger
    prematurely.)

    Furthermore, it told us that MCD intends to convert SOME OF
    these 751 EXISTING and SOME OF these 108 potentially
    existing sites THAT IT DOESN'T RETAIN AS BOSTON MARKET
    sites to:

    a) McDonalds
    b) Chipotle Mexican
    Grill
    c) Donato's Pizza

    So we have 751 existing
    sites potentially diversified among 4 restaurant names,
    or an average of about 188 units per name which, if
    they were applied to the 33 states BOST is in,
    averages < 6 units per state.

    PZZA, by
    comparison has, as its most recent pr tells us, 2201 units
    throughout the United States + 5 international markets.


    PZZA's web site apparently indicates that the U.S.'
    territorial possession of Puerto Rico is considered an
    "international" market. If I were a citizen and resident of
    Puerto Rico, and found myself being listed as being in
    an "international" market, I'd consider that an
    insult
    and let those insensitive sorts at corporate know
    what they could do with their pizza.

    Be that
    as it may, there are a total of 24 units listed
    under the 5 international markets, leaving 2,177
    stateside. The General is fairly certain that PZZA does not
    have units within all 50 states but does not recall
    the exact number of states that it's in. If we're
    talkin' 35 states, that's an average of 62+ per state. 40
    states would be 54+ units per and 45 states would be 48+
    units per state. Anyway, comparison-wise, that'd be
    somewhere between 8 to 10 times the number of Donato's
    conversions MCD might have (if averaged) in the 33
    state/markets it's buying (@ $231,025 per existing
    unit).

    Last Monday, by contrast, we learned that PZZA is
    buying 205 Perfect Pizza units for $32.5 million, or
    $158,537 per existing unit over in England. $231,025
    versus $158,537 per existing unit. That's 45+% more per
    acquisition cost per unit. Put another way, PZZA's acquired
    units cost slightly more than 2/3rds (per unit) of what
    MCD's cost. Pizza-wise, is everything else over in
    England cost 2/3rds of domestic costs? Who has to sell
    more pizza's per unit to make costs? MCD's Donato's or
    PZZA's (formerly) Perfect Pizza?

 
PZZA
45.70-0.11(-0.24%)Feb 5 4:00 PMEST