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 24, 2023 have not changed from those reported in “Part II.
+Added: The market risks associated with our debt obligations as of March 31, 2024 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 31, 2023.
2 unchanged sentences
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 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, as well as Company-owned restaurants located in the UK.
−Removed: Approximately 8.2% and 7.0% of our revenues were derived from these operations for the three and nine months ended September 24, 2023, respectively, as compared to 6.0% and 6.2% 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, operation of Company-owned restaurants 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 7.9% of our revenues were derived from these operations for the three months ended March 31, 2024, as compared to 6.0% for the prior year comparable period.
We have not historically hedged our exposure to foreign currency fluctuations.
−Removed: Foreign currency exchange rate fluctuations had a favorable impact of approximately $2.3 million and an unfavorable impact of $0.7 million on International revenues for the three and nine months ended September 24, 2023, and an unfavorable impact of $4.6 million and $9.0 million for the three and nine months ended September 25, 2022.
−Removed: Foreign currency exchange rate fluctuations had an unfavorable impact of approximately $0.3 million and $0.8 million on operating income for the three and nine months ended September 24, 2023, respectively, and an unfavorable impact of $0.4 million and $1.5 million on operating income for the three and nine months ended September 25, 2022, respectively.
+Added: Foreign currency exchange rate fluctuations had a favorable impact of approximately $1.0 million and an unfavorable impact of $2.9 million on International revenues for the three months ended March 31, 2024 and three months ended March 26, 2023, respectively.
+Added: Foreign currency exchange rate fluctuations had an unfavorable impact of approximately $0.9 million and $0.6 million on operating income for the three months ended March 31, 2024 and three months ended March 26, 2023, respectively.
Commodity Price Risk
1 unchanged sentence
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 ongoing commodity volatility.
−Removed: The following table presents the actual average block price for cheese by quarter through the third quarter of 2023 and the projected average block price by quarter for 2023 (based on the October 27, 2023 Chicago Mercantile Exchange cheese futures market prices):
−Removed: Block Price Actual
−Removed: Quarter 1 $ 1.960 $ 1.966
−Removed: Quarter 2 1.668 2.296
−Removed: Quarter 3 1.755 1.938
−Removed: Quarter 4 1.788 1.974
−Removed: Full Year $ 1.793 (a) $ 2.043
−Removed: ___________________________________
−Removed: 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.
−Removed: Additionally, the price charged to restaurants can vary somewhat by quarter from the actual block price based upon our monthly pricing mechanism.
+Added: however, we still remain exposed to ongoing commodity volatility, and increases in commodity prices or food costs, including as a result of inflation, could negatively impact our business, financial condition or results of operations.
+Added: We have not historically entered into other financial instruments that would be accounted for as hedging instruments to manage this risk.
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.