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PZZA (Papa John's International) Degree of Operating Leverage : -0.98 (As of Mar. 2025)


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What is Papa John's International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Papa John's International's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.98. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Papa John's International's Degree of Operating Leverage or its related term are showing as below:

PZZA's Degree of Operating Leverage is ranked better than
69.41% of 340 companies
in the Restaurants industry
Industry Median: 1.115 vs PZZA: -0.98

Papa John's International Degree of Operating Leverage Historical Data

The historical data trend for Papa John's International's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Papa John's International Degree of Operating Leverage Chart

Papa John's International Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.73 5.83 -21.61 21.86 -1.82

Papa John's International Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.66 3.43 46.12 -1.82 -0.98

Competitive Comparison of Papa John's International's Degree of Operating Leverage

For the Restaurants subindustry, Papa John's International's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Papa John's International's Degree of Operating Leverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Papa John's International's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Papa John's International's Degree of Operating Leverage falls into.


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Papa John's International Degree of Operating Leverage Calculation

Papa John's International's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 146.951 (Mar. 2025) / 143.064 (Mar. 2024) - 1 )/( 2063.78 (Mar. 2025) / 2122.58 (Mar. 2024) - 1 )
=0.0272/-0.0277
=-0.98***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Papa John's International  (NAS:PZZA) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Papa John's International Degree of Operating Leverage Related Terms

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Papa John's International Business Description

Traded in Other Exchanges
Address
2002 Papa John's Boulevard, Louisville, KY, USA, 40299-2367
Papa John's is one of the largest players in the global QSR, or quick-service restaurant, pizza market, boasting more than 6,000 restaurants across nearly 50 countries at the end of 2024. The firm operates a predominantly franchised system, owning 9% of its restaurants and generating revenue from franchise royalties, sales of pizza and related products at its company-owned stores, and sales from its commissary supply chain. The firm is the fourth-largest limited-service pizza chain globally and third in the US (Euromonitor International), with a sizable presence in the UK, China, South Korea, and Chile.
Executives
Christopher L. Coleman director P.O. BOX 99900, LOUISVILLE KY 40269
Ravi Thanawala officer: Chief Financial Officer 788 CIRCLE 75 PARKWAY, ATLANTA GA 30339
Laurette T Koellner director
John W Garratt director 100 MISSION RIDGE, GOODLETTSVILLE TN 37072
Stephen L Gibbs director C/O SCIENTIFIC GAMES CORPORATION, 1500 BLUEGRASS LAKES PARKWAY, ALPHARETTA, GA 30004
John C Miller director
Christopher K Collins officer: VP, Treasury and Tax 788 CIRCLE 75 PARKWAY, ATLANTA GA 30339
Marvin Boakye officer: Chief People Officer PO BOX 99900, LOUISVILLE KY 40269
Olivia F Kirtley director 6655 LANCER BLVD, SAN ANTONIO TX 78219
Robert Lynch director, officer: President and CEO P. O. BOX 99900, LOUISVILLE KY 40269
Jack H Swaysland officer: SVP, COO - International PO BOX 99900, LOUISVILLE KY 40269
Jeffrey C Smith director 201 E LAS OLAS BOULEVARD, SUITE 1000, FORT LAUDERDALE FL 33301
James Norberg officer: SVP, CROO PO BOX 99900, LOUISVILLE KY 40269
Caroline Miller Oyler officer: SVP, General Counsel P.O. BOX 99900, LOUISVILLE KY 40269
Ann B Gugino officer: Chief Financial Officer 1031 MENDOTA HEIGHTS ROAD, ST. PAUL MN 55120