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Subject:  Re: Papa Johns Maker??? Date:  5/2/1999  4:31 PM
Author:  TMFEarly Number:  2517 of 8329

I would like to submit Papa John's (PZZA) as a possible
RuleMaker company. Listed below is the RuleMaker
qualifications. They don't yet have great net margins
or true monopoly status but their other financials and
business prospects are pretty good.

I think we should wait a while before considering PZZA as a RuleMaker.

1. As noted sales are not $1 billion yet. This hasn't always stopped us, but recent experience suggests that it may be a few years before sales get to this level.

2. The one competitor that has been identified (YUM) is 10 times the size of PZZA, and it has two divisions that are in at least somewhat different areas of business (i.e., chicken and Mexican food with no delivery). This makes direct comparisons of some question.

3. If possible, I'd like to see comparisons to other pure Pizza franchises, such as Numero Uno.

4. Moreover, the RM scores have been dropping each year as the business has been growing. This makes me even more anxious to wait until I see $1 billion in sales before doing any more work to decide where PZZA is really a RuleMaker.


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