Papa John’s International, Inc. (PZZA), operates over 5,000 restaurants in the United States and 45 countries. The company operates primarily as a franchisor with 4,353 franchised restaurants and 744 company-operated restaurants. Recent data (in millions) for the company-operated and North America franchised restaurants are as follows:

a. Determine the profit margin for each segment. Round to one decimal place.

b. Determine the investment turnover for each segment. Round to two decimal places.

c. Use the DuPont formula to determine the return on investment for each segment. Round to one decimal place.

d. Analyze and interpret the results of (a), (b), and (c).

Transcribed Image Text:

Restaurants North America Company- Operated Franchised Sales Operating income Invested assets $816 $103 92 75 225 10