Papa John’s operates and franchises pizza delivery and carryout restaurants in 49 countries. Presented here are selected years’ income statement and balance sheet amounts (dollars in thousands).

Required:
1. Compute ROA for the current and prior years and explain the meaning of the change.
2. Would security analysts more likely increase or decrease their estimates of share value on the basis of this change? Explain.

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Net sales Net income Average shareholders' equity Average total assets Current Year $1,619,248 4,866 (310,335) 663,309 Prior Year $1,662,871 2,474 (204,984) 595,897