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Hello all,

(pause for splash sound, as I just got my feet wet w/my first post to this board).

I have been monitoring this board for the last month or so and, unlike alot of the msg. boards on Yahoo!, a large majority of the posts are relevant, informative, and helpful.  I am a big fan of Fooldom and enjoy reading the posts and news articles on a daily basis.  

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.

Reporting periods for PZZA and YUM (Tricon Glbl, parent of Pizza Hut, Taco Bell, & KFC) is for the year ended 12/31/98.  It appears that PZZA is a solid 2nd tier company, although I'm not sure the pizza business is a RuleMaker business.  I have done the reports for 1998,1997, & 1996.  The 1998 report is listed below.

Brand                   Financial Direction
Familiarity   1         Sales Growth        3
Openness      1         Gross Margins       1
Optimism      1         Net Margins         2
Legitimacy    1         Shares Outstanding  2
Inevitability 1         Cash-to-Debt        3
Solitariness  1         Fool Flow Ratio     3
Humor         1         Expansion Potential 3

Sub-total     7         Sub-total           17

Financial Location      Monopoly Status
Mass Market Habit  2    Gross Margins       4
Gross Margins      1    Net Margins         0
Net Margins        0    Net Cash            4
Cash-to-Debt       2    Fool Flow Ratio     0
Fool Flow Ratio    2    Convenience         2
Your interest      2

Sub-total          9    Sub-total           10

My enjoyment:  1

Total Score: 44
(just as a note for years ended 1997 & 1996 total scores were 48 & 46 respectively, are we seeing a decline???)

Recent Financials (in thousands)

              Year Ended 12/31/98   Year Ended 12/31/97
Income Statement
Sales           669,806               508,784
Cost of Sales   328,200               243,680
Net Income      35,165                26,853
#Shares         30,327                29,592

Balance Sheet
Cash & Equiv    33,984                18,692
Current Assets  67,834                49,176
Short-term Debt 0                     0
Current Liab.   43,626                30,382
Long-term Debt  0                     0

Margins & Ratios
Gross Margins   51.0%                 52.1%
Net Margins     5.3%                  5.3%
Cash-to-Debt    No debt               No debt
Net Cash        33,984                18,692
Fool Flow Ratio 0.78                  1.00

Here are the financials for YUM for same period

Income Statement
Sales              8,468,000
Cost of Sales      4,764,000
Net Income         445,000
Shares Outstanding 156,000

Balance Sheet
Cash & Equiv       208,000
Current Assets     625,000
Short-term Debt    96,000
Current Liab.      1,473,000
Long-term Debt     3,436,000

Margins & Ratios:
Gross Margins      43.7%
Net Marings        5.3%
Cash-to-Debt       0.06
Net Cash           -3,332,400
Fool Flow Ratio    .30

I would appreciate it if someone could verify the financials.  It seems that YUM has an incredibly low Flow Ratio.  Also, are there any other public competitors of PZZA and YUM?

I would appreciate any comments, criticisms, or corrections.

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