Papa John€™s is one of the fastest-growing pizza delivery and carry-out restaurant chains in the country. Presented here are selected income statement and balance sheet amounts (dollars in thousands).

Required:
1. Compute ROE for the current and prior years and explain the meaning of the change.
2. Explain the major cause(s) of the change in ROE using ROE profit driver analysis.
3. Would security analysts more likely increase or decrease their estimates of share value on the basis of this change?Explain.

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Current Year Prior Year Net sales Net income Average shareholders' equity Average total assets $917.378 33,563 140,610 357.023 $946,219 46,797 148,790 377,136