Papa John's International, Inc. (PZZA) stock has disappointed investors this year, underperforming the industry and the S&P 500. The company's dismal performance was due to the challenging macroeconomic environment and decline in organic delivery. So far this year, PZZA stock has declined 38.4% compared with the industry's decrease of 2% and against the S&P 500 composite's growth of 13.3%. As of Friday, the stock closed at $46.93, significantly below its 52- week high of $78.74 but above the low of $39.90. ...

Core Insights - Papa John's International, Inc. (PZZA) is expected to benefit from digital initiatives, menu innovation, and unit expansion efforts, although it faces challenges from a difficult macro environment and soft comparable sales [1] Group 1: Strategic Efforts - Innovation is central to Papa John's strategy, with a focus on expanding differentiated menu offerings to enhance customer satisfaction and brand loyalty [2] - Investments in digital platforms are anticipated to improve conversion rates and repeat transactions, with recent app updates and loyalty program enhancements showing promising results [2] - The company is realigning its marketing and product offerings to appeal to value-conscious consumers, launching items like the $9.99 cheeseburger pizza and $10.99 extra-large New York-style pizza to improve value perception [3] Group 2: International Growth - Papa John's is optimizing operations internationally, particularly in the U.K., where it closed 43 underperforming restaurants and refranchised 60, aiming for profitability in the U.K. market by the second half of 2024 [4] - A global marketing campaign, 'Better Get You Some,' has started to yield positive results across various regional hubs [4] Group 3: Performance Challenges - Year-to-date, Papa John's shares have declined by 36.3%, contrasting with a 0.2% rise in the industry, primarily due to softer sales trends driven by macroeconomic pressures [5] - In Q2, total comparable sales fell by 2.7% year-over-year, with domestic company-owned restaurant comps down 4.2% compared to a 2.2% growth in the prior year [6] - The company anticipates ongoing economic challenges and weakening consumer confidence, adjusting its full-year guidance to reflect a cautious outlook for North America's comparable sales in 2024 [7] Group 4: Long-term Outlook - Despite near-term challenges, Papa John's is strategically positioning itself for long-term success through enhanced value perception, innovation, digital optimization, and improved international operations [8]

Papa John's International, Inc. (PZZA) recorded mixed second-quarter 2024 results, wherein its earnings beat the Zacks Consensus Estimate but revenues missed the same. The top declined but the bottom line increased on a year-over-year basis. Following the results, the company's shares rose 1.7% during trading hours on Aug 8. Earnings & Revenue Discussion In the fiscal second quarter, the company reported adjusted earnings per share (EPS) of 61 cents, which beat the Zacks Consensus Estimate of 51 cents. It r ...

Core Viewpoint - Papa John's reported mixed Q2 results with weak sales but improved profitability, leading to a slight positive market reaction despite the overall performance being below expectations [1][10] Financial Performance - Q2 revenues were $507.9 million, a decrease of 1.3% year-on-year, missing Wall Street estimates by $12.9 million [2] - Adjusted EPS was $0.61, beating the prior year's $0.59 and Wall Street estimates by $0.08, indicating effective cost management [2][5] - Adjusted operating income increased by $1.5 million to $38.4 million, despite the sales weakness [5] Comparable Sales - North American comparable store sales declined by 3.6%, with company-owned restaurants experiencing a 4.2% drop [4] - International comparable sales saw a slight decline of 0.1% [4] - The overall QSR industry showed mixed results, with competitors like Domino's and Yum! Brands reporting varying performance, highlighting the challenging market conditions [4] Operational Changes - The company closed 31 net units, primarily due to 43 planned closures in the UK as part of operational streamlining [3] - At the end of the quarter, Papa John's had 5,883 system-wide restaurants, supported by growth in international franchised locations [3] Future Outlook - The company is focusing on enhancing marketing efforts through the Back To Better 2.0 plan, which is expected to improve traffic and sales in the midterm [4][10] - A discounted cash flow model estimates the fair value of the stock at $62.75, indicating a potential upside of 42% from the current stock price [7] Valuation Metrics - The weighted average cost of capital (WACC) is estimated at 7.90%, down from 8.82%, reflecting improved cash flow estimates [8] - The EBIT margin is projected to remain at 8.8% post-implementation of the Back To Better 2.0 plan, with earlier margin improvements anticipated [6]

For the quarter ended June 2024, Papa John's (PZZA) reported revenue of $507.89 million, down 1.3% over the same period last year. EPS came in at $0.61, compared to $0.59 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $518.86 million, representing a surprise of -2.11%. The company delivered an EPS surprise of +19.61%, with the consensus EPS estimate being $0.51. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Core Insights - Papa John's reported quarterly earnings of $0.61 per share, exceeding the Zacks Consensus Estimate of $0.51 per share, and showing a slight increase from $0.59 per share a year ago, resulting in an earnings surprise of 19.61% [1] - The company generated revenues of $507.89 million for the quarter ended June 2024, which fell short of the Zacks Consensus Estimate by 2.11% and represented a decline from $514.53 million in the same quarter last year [2] - Papa John's shares have decreased by approximately 44.3% since the beginning of the year, contrasting with a 9% gain in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.52, with projected revenues of $518.06 million, while the estimate for the current fiscal year stands at $2.37 on revenues of $2.08 billion [7] - The trend of estimate revisions for Papa John's has been unfavorable, leading to a Zacks Rank of 4 (Sell), indicating expectations of underperformance in the near future [6] Industry Context - The Retail - Restaurants industry, to which Papa John's belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8] - Another company in the same industry, Red Robin, is expected to report a quarterly loss of $0.41 per share, reflecting a year-over-year decline of 70.8%, with revenues anticipated to be $295.57 million, down 1% from the previous year [9]

The upcoming report from Papa John's (PZZA) is expected to reveal quarterly earnings of $0.51 per share, indicating a decline of 13.6% compared to the year-ago period. Analysts forecast revenues of $518.86 million, representing an increase of 0.8% year over year. The consensus EPS estimate for the quarter has been revised 2.4% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe. Ahead ...

The industry is grappling with challenges stemming from potential geopolitical events in an ever-changing global landscape. Papa John's closely monitors these situations and adapts its operations in affected regions accordingly. In the first quarter of fiscal 2024, the company's international comparable sales were negatively impacted by ongoing conflict in the Middle East, resulting in a 2.6% year-over-year decline compared to a 5.8% drop in the prior-year quarter at international restaurants. The company r ...

Get Domino's Pizza alerts: In fact, the trajectory between the 2 stocks couldn't be any more opposite. Domino's stock is trading up 26.5% year-to-date (YTD), while Papa John's is trading down nearly 39% YTD near 52-week lows when the S&P 500 index is trading near all-time highs. Domino's: The World's Largest Pizza Company | --- | --- | |-----------------------|-------| | | | | | | | DPZ Domino's Pizza | | | $522.94 | | | +1.53 (+0.29%) | | | 52-Week Range $313.87 | | | ▼ | | | $542.75 | | | Dividend Yield 1 ...

EDMONTON, Alberta, June 11, 2024 (GLOBE NEWSWIRE) -- Over 500,000 fans have begged for its return and while others have attempted to enter the burger game, Papa Johns is delivering exactly what the internet wants: Cheesy Burger Pizza. "The Cheesy Burger Pizza has been a favourite for over a decade and fans have passionately let us know they want it back through endless comments, tweets and phone calls begging for its return," says Kimberly Bean, Vice President of Integrated Marketing and Menu Strategy. "Whi ...