6 unchanged sentences
We do not enter into contracts for trading purposes and do not use leveraged instruments.
−Removed: The market risks associated with our debt obligations as of September 25, 2022 have not changed from those reported in “Part II.
+Added: The market risks associated with our debt obligations as of March 26, 2023 have not changed from those reported in “Part II.
Quantitative and Qualitative Disclosure About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended December 25, 2022.
−Removed: See “Note 8” of “Notes to Condensed Consolidated Financial Statements” for additional information on our debt obligations and derivative instruments.
+Added: Debt” of “Notes to Condensed Consolidated Financial Statements” for additional information on our debt obligations and derivative instruments.
Foreign Currency Exchange Rate Risk
We are exposed to foreign currency exchange rate fluctuations from our operations outside of the United States, which can adversely impact our revenues, net income and cash flows.
−Removed: Our international operations principally consist of distribution sales to franchised Papa John’s restaurants located in the United Kingdom and our franchise sales and support activities, which derive revenues from sales of franchise and development rights and the collection of royalties from our international franchisees.
−Removed: Approximately, 6.0% and 6.2% of our revenues were derived from these operations for the three and nine months ended September 25, 2022, respectively, as compared to 7.5% and 7.2% for the prior year comparable periods.
+Added: Our International operations principally consist of distribution sales to franchised Papa John’s restaurants located in the UK and our franchise sales and support activities, which derive revenues from sales of franchise and development rights and the collection of royalties from our International franchisees.
+Added: Approximately 6.0% and 6.4% of our revenues were derived from these operations for the three months ended March 26, 2023 and March 27, 2022, respectively.
We have not historically hedged our exposure to foreign currency fluctuations.
−Removed: Foreign currency exchange rate fluctuations had an unfavorable impact of approximately $4.6 million and $9.0 million on International revenues for the three and nine months ended September 25, 2022, respectively, and a favorable impact of $2.1 million and $7.9 million for the three and nine months ended September 26, 2021, respectively.
−Removed: Foreign currency exchange rate fluctuations had an unfavorable impact of approximately $0.4 million and $1.5 million on operating income for the three and nine months ended September 25, 2022, respectively, and a favorable impact of $0.4 million and $1.7 million on operating income for the three and nine months ended September 26, 2021, respectively.
+Added: Foreign currency exchange rate fluctuations had an unfavorable impact of approximately $2.9 million on International revenues for the three months ended March 26, 2023, and an unfavorable impact of $1.2 million for the three months ended March 27, 2022.
+Added: Foreign currency exchange rate fluctuations had an unfavorable impact of approximately $0.6 million on operating income for the three months ended March 26, 2023 and March 27, 2022, respectively.
Commodity Price Risk
−Removed: In the ordinary course of business, the food and paper products we purchase, including cheese (our largest individual food cost item), are subject to seasonal fluctuations, weather, availability, demand and other factors that are beyond our control.
+Added: In the ordinary course of business, the food and paper products we purchase, including cheese (our largest ingredient cost), are subject to seasonal fluctuations, weather, availability, demand and other factors that are beyond our control.
We have pricing agreements with some of our vendors, including forward pricing agreements for a portion of our cheese purchases for our Domestic Company-owned restaurants, which are accounted for as normal purchases;
−Removed: however, we remain exposed to on-going commodity volatility.
−Removed: The following table presents the actual average block price for cheese by quarter through the third quarter of 2022 and the projected average block price by quarter for 2022 (based on the October 28, 2022 Chicago Mercantile Exchange cheese futures market prices):
+Added: however, we remain exposed to ongoing commodity volatility.
+Added: The following table presents the actual average block price for cheese by quarter through the first quarter of 2023 and the projected average block price by quarter for 2023 (based on the April 27, 2023 Chicago Mercantile Exchange cheese futures market prices):
Block Price Actual
4 unchanged sentences
Full Year $ 1.953 (a) $ 2.067
−Removed: (a) The full year estimate is based on futures prices and does not include the impact of forward pricing agreements we have for a portion of our cheese purchases for our domestic Company-owned restaurants.
+Added: ___________________________________
+Added: The full year estimate is based on futures prices and does not include the impact of forward pricing agreements we have for a portion of our cheese purchases for our domestic Company-owned restaurants.
Additionally, the price charged to restaurants can vary somewhat by quarter from the actual block price based upon our monthly pricing mechanism.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.