How Much Obamacare Will Really Cost Papa John's

Last year, Papa John’s International captured $1.218 billion in revenue. Total operating expenses were $1.131 billion. So if Schnatter’s math is accurate (Obamacare will cost his company $5-8 million more annually), then new regulation translates into a .4% to .7% (yes, fractions of a percent) expense increase. It’s difficult to set that ratio against the proposed pie increase, given size and topping differentials, but many of their large specialty pizzas run for $16. Remarkably, a 10-14 cent increase on a $16 pizza falls in a comparable range: .6% to.9%. But the cost transference becomes less equitable if you’re looking at medium pizzas, which run closer to $12, meaning a .8% to 1.15% price increase.
For the sake of argument, let’s say that Papa John’s sells exactly half medium/half large specialty pizzas. Averaging the ranges for both sizes, then averaging that product yields a .86% price increase — well outside the range of what Schnatter says Obamacare will cost him.
So how much would prices go up, under these 50/50 conditions, if they were to fairly reflect the increased cost of doing business onset by Obamacare? Roughly 3.4 to 4.6 cents a pie.
In September, the company announced that it would be giving away 2 million free pizzas. That was, of course, a promotion designed to increase brand awareness and to invite consumers to try the brand — with the ultimate goal of selling more pizzas. Those giveaways can’t really be cataloged alongside sales that would have been made otherwise. But just in case you’re curious, that would be the equivalent of $24 million to $32 million in pizza revenue.
Necks In This Game
Standing to lose (or gain) as his company determines how best to operate under new regulations is Papa Schnatter himself, who owns 6,094,409 shares, or nearly one fourth, of Papa John’s, according to the company’s most recent annual report. 1,268,052 of those shares are held in a family limited partnership and 84,000 shares held in a 501(c)(3). The rest are directly owned. At the $49.44 share price, subtracting those held in a charitable trust, the remaining 6,010,409 shares are worth roughly $297 million. Schnatter’s compensation packages for years 2009-11 were $2,319,643, $2,614,516, and $2,745,219 respectively, also according to the annual report. Papa John’s International has not paid a dividend since 2005.
Also hanging in the balance are the shares of institutional investors FMR (11.6%), BlackRock (6.7%) and JP Morgan Chase (5%). But if these notions of protest materialize, Papa John’s front line will be populated by the franchise owners who operate many of its 4,000-plus international locations.
Emails sent to Papa John’s Investor Relations and calls placed to Papa John’s Public Relations were not immediately returned for comment.

WWPD ???


what would Peyton do

one eighty one eighty
KILL KILL
JET 19
HUT HUT

Oh I'm signing this.

http://www.thepetitionsite.com/m/681...re/?cid=FB_TAF

Oh I'm signing this.

http://www.thepetitionsite.com/m/681...re/?cid=FB_TAF Originally Posted by markroxny

Yeah! A healthcare surcharge, per pie, brilliant Mark!
Everyone gets to see the impact of their vote in black/white right on the receipt, I like it.

But lets make it .50 cents or an even dollar. Lets let Papa turn that into a profit center and make some money on it too. The more money he makes, the more income tax he has to pay. They put it right next to the the delivery surcharge.

But lets make it ...an even dollar. .... They put it right next to the the delivery surcharge. Originally Posted by camouflage

Which is right next to the "Fat-Food" surcharge of $1.00 and ...

... the "Green-Food" surcharge of $1 ....

....because they are not using "alternative fuels" for cooking the pies.

$5.00 plus
4.00 Federal surcharges .. in lieu of taxing the ... errr ... "rich"!

Good, after so many surcharges perhaps people will elect healthier foods, meaning reduced health care costs for everyone. Sounds like a bad situation can be turned into an opportunity.

We have to get Dominos and Pizza Hut in on this. Oh and Applebees and Chili's too.
Its just a buck, everyone can afford an extra buck for the cause, ya know, their fair share.

Boycott them if you want. See if it works. I'm still eating Papa John's, it's good pizza. I love the garlic sauce and little peppers they put in the box.

We have to get Dominos and Pizza Hut in on this. Oh and Applebees and Chili's too.
Its just a buck, everyone can afford an extra buck for the cause, ya know, their fair share. Originally Posted by camouflage

Hmmmm....I wonder why Dominoes and Pizza Hut and Applebees and Chili's haven't announced mass firings due to Obamacare????

Hmmmmmmmm

I think Applebee's has announced either mass layoffs or reducing hours. I can't remember which. If I can find the article again, I will post it. Many companies are doing the same.

You seem to forget. Businesses are in business to make money, not provide health insurance. They provide health insurance in an effort to attract and keep better employees. The employees pay for the insurance by the value they provide the company. So, if a company pays an employee $10 p/h, and health care costs for the employee paid for by the company are $5 p/h, the employee needs to return at least $15 p/h in value to the company. If the employee can't do that, s/he will not have a job. When the government arbitrarily increases labor costs, simple economics tells us that the demand for labor will decrease. That's what's happening here. The employees who can't provide the value to the company to justify their job will be laid off. It's as simple as that.

You can't screw with demand and supply and expect things to stay the same. It just won't. That's why Obama is incompetent. He doesn't understand simple economics.

Pizza hut is doing what a business should do, coming up with new ideas and new products

http://www.huffingtonpost.com/2012/1...n_2121455.html

http://blog.zagat.com/2012/11/papa-j...ss-action.html

A couple of noteworthy news items in the world of fast food pizza today - first off, Papa John's has been slapped with a class action lawsuit for sending spammy text messages to its customers. The suit, worth a potential $250 million in damages, could be one of the largest suits ever filed under the federal Telephone Consumer Protection Act. Plaintiffs could receive over $500 per text message - talk about a lot of dough! Hiyo!

In Pizza Hut news, the chain, which is known for its outrageous concoctions like the crown crust pizza and cone crust pizza has just unleashed the "Overstuffed Pizza," essentially a pizza with another layer of crust over it that looks like a giant P'zone. There are two different sets of options for fillings (not toppings!) - the Italian Meat Trio, which contains pepperoni and two kinds of sausages - and the Supremo: Italian sausage, onions, bell peppers and mushrooms. The six-slice pies will set you back $12.99 and are available now nationwide

I think Applebee's has announced either mass layoffs or reducing hours. I can't remember which. If I can find the article again, I will post it. Many companies are doing the same.

You seem to forget. Businesses are in business to make money, not provide health insurance. They provide health insurance in an effort to attract and keep better employees. The employees pay for the insurance by the value they provide the company. So, if a company pays an employee $10 p/h, and health care costs for the employee paid for by the company are $5 p/h, the employee needs to return at least $15 p/h in value to the company. If the employee can't do that, s/he will not have a job. When the government arbitrarily increases labor costs, simple economics tells us that the demand for labor will decrease. That's what's happening here. The employees who can't provide the value to the company to justify their job will be laid off. It's as simple as that.

You can't screw with demand and supply and expect things to stay the same. It just won't. That's why Obama is incompetent. He doesn't understand simple economics. Originally Posted by CuteOldGuy

Actually, to be correct, the employee has to provide a financial benefit to the owner in excess of any other reasonable investment opportunity available to the owner....profitability is not enough, it needs to be most profitable reasonably available....if you got $100,000 to invest, 5% return is profitable, but 8% is better....if the cost to switch money from one account to the other makes it worth while, you do it.....of course, switching money out of an operating business to another investment is a more involved calculation, but those calculations get made every day.......liberals don't understand this....

Exactly right, CC. I was trying to keep it simple. Our liberal friends have problems with complex ideas. But you are exactly right.

I think Applebee's has announced either mass layoffs or reducing hours. I can't remember which. If I can find the article again, I will post it. Many companies are doing the same.

You seem to forget. Businesses are in business to make money, not provide health insurance. They provide health insurance in an effort to attract and keep better employees. The employees pay for the insurance by the value they provide the company. So, if a company pays an employee $10 p/h, and health care costs for the employee paid for by the company are $5 p/h, the employee needs to return at least $15 p/h in value to the company. If the employee can't do that, s/he will not have a job. When the government arbitrarily increases labor costs, simple economics tells us that the demand for labor will decrease. That's what's happening here. The employees who can't provide the value to the company to justify their job will be laid off. It's as simple as that.

You can't screw with demand and supply and expect things to stay the same. It just won't. That's why Obama is incompetent. He doesn't understand simple economics. Originally Posted by CuteOldGuy

hot damn, more cutbacks, and layoffs ... for legislation that hasnt taken place yet


its fuckin magic I tell ya, MAGIC !

Exactly right, CC. I was trying to keep it simple. Our liberal friends have problems with complex ideas. But you are exactly right. Originally Posted by CuteOldGuy

Of course, your statement is 100% correct if you add the concept of opportunity cost as an expense, but that's beyond your 1st grade class.....you should just hand out a cookie to each of them and call early dismissal....