Price Of Cheese Puts Squeeze On Papa John's 2Q

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Papa John's said it expects the high commodity costs, particularly cheese, to continue throughout the rest of the year. Photo Ildar Sagdejev
Papa John's said it expects the high commodity costs, particularly cheese, to continue throughout the rest of the year. Photo Ildar Sagdejev

LOUISVILLE, Ky. (AP) - Pizza chain Papa John's International Inc. said Tuesday that its second quarter net income fell 8 percent because of tough competition and the high cost of cheese and other commodities, even though revenue rose.

Net income fell to $12.1 million, or 47 cents per share, from $13.2 million, or 49 cents per share last year. That matched analyst expectations, according to FactSet.

Revenue rose 5 percent to $293.5 million from $280.6 million last year. Analysts expected higher revenue of $301.7 million.

Restaurants are dealing with high food costs. Papa John's said it expects the competitive environment and high commodity costs, particularly cheese, to continue throughout the rest of the year.

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