The company's shares have declined 35.7% year to date compared with the industry's 3.6% fall. Let's look at PZZA's earnings estimate revisions to get a clear picture of what analysts are thinking about the company. Earnings estimates for the fiscal 2024 and 2025 have been revised downward by 6.1% and 7.1%, respectively, in the past 30 days. Let's discuss the factors that are likely to impact this Zacks Rank #4 (Sell) company's growth potential. Papa John's International, Inc. (PZZA) has been witnessing stro ...

Here's the latest list of major oversold players in this sector, having an RSI near or below 30. Papa John's International, Inc. PZZA Chegg, Inc. CHGG Expedia Group, Inc. EXPE Loading... Read More: Investor Optimism Improves Ahead Of CPI Report, Nasdaq Settles At Record High Loading... Loading... The most oversold stocks in the consumer discretionary sector presents an opportunity to buy into undervalued companies. The RSI is a momentum indicator, which compares a stock's strength on days when prices go up ...

Papa John’s International, Inc. (PZZA) recorded mixed first-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line declined on a year-over-year basis.Following the results, the company’s shares fell 6.8% during trading hours on May 9. Negative investor sentiments were witnessed as the company cited sales pressure in the short term due to the persistent challenging macroeconomic conditions and a decline in consumer confidence ...

Papa John's International, Inc. (NASDAQ:PZZA) Q1 2024 Earnings Conference Call May 9, 2024 8:00 AM ET Company Participants Stacy Frole - VP, IR Ravi Thanawala - Interim Chief Executive Officer & CFO Rob Lynch - President & CEO Conference Call Participants Jim Salera - Stephens Inc. Eric Gonzalez - KeyBanc Sara Senatore - Bank of America Brian Mullan - Piper Sandler Brian Bittner - Oppenheimer\ Lauren Silverman - Deutsche Bank Andrew Strelzik - BMO Capital Markets Alexander Slagle - Jefferies Dennis Geiger - ...

For the quarter ended March 2024, Papa John's (PZZA) reported revenue of $513.92 million, down 2.5% over the same period last year. EPS came in at $0.67, compared to $0.68 in the year-ago quarter.The reported revenue represents a surprise of -5.52% over the Zacks Consensus Estimate of $543.94 million. With the consensus EPS estimate being $0.58, the EPS surprise was +15.52%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Papa John's International, Inc. as of March 31, 2024, and for the three months then ended, covering Balance Sheets, Statements of Operations, and Cash Flows, along with detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (Unaudited, in thousands) | (In thousands) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $27,768 | $40,587 | | Total current assets | $225,927 | $231,018 | | Total assets | $847,167 | $875,005 | | **Liabilities & Stockholders' Deficit** | | | | Total current liabilities | $282,634 | $304,596 | | Long-term debt, less current portion, net | $761,317 | $757,422 | | Total liabilities | $1,292,649 | $1,317,770 | | Total stockholders' deficit | ($446,423) | ($443,616) | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 vs. Q1 2023 Statement of Operations (Unaudited, in thousands) | (In thousands, except per share amounts) | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 26, 2023 | | :--- | :--- | :--- | | Total revenues | $513,916 | $527,049 | | Operating income | $33,718 | $37,796 | | Net income attributable to the Company | $14,636 | $22,376 | | Diluted earnings per common share | $0.44 | $0.65 | | Dividends declared per common share | $0.46 | $0.42 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 vs. Q1 2023 Cash Flow Summary (Unaudited, in thousands) | (In thousands) | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 26, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $11,987 | $40,788 | | Net cash used in investing activities | ($10,152) | ($18,275) | | Net cash used in financing activities | ($14,602) | ($23,212) | | Change in cash and cash equivalents | ($12,819) | ($665) | | Cash and cash equivalents at end of period | $27,768 | $46,708 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company is executing an International Transformation Plan, which includes closing 43 underperforming Company-owned restaurants in the UK, resulting in restructuring costs of **$9.5 million** in Q1 2024, primarily from asset impairment charges[66](index=66&type=chunk)[68](index=68&type=chunk) - Total estimated pre-tax costs for the International Transformation Plan are approximately **$25 million to $35 million**, with **$11.7 million** incurred through Q1 2024, and the remainder expected through 2024 and 2025[69](index=69&type=chunk) - Total debt outstanding was **$769.3 million** as of March 31, 2024, consisting of **$400.0 million** in senior notes and **$369.3 million** under revolving facilities, with the company in compliance with all debt covenants[58](index=58&type=chunk)[137](index=137&type=chunk) - In 2023, the company acquired 118 previously franchised restaurants in the UK for a total consideration of approximately **$15.2 million**, which resulted in the recognition of **$4.3 million** in goodwill[79](index=79&type=chunk)[81](index=81&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, highlighting a **2.5% decrease in total revenues to $513.9 million**, covering segment performance, strategic initiatives, profitability, liquidity, and capital resources - The company is focused on its "Back to BETTER 2.0" initiative, aiming to enhance marketing, accelerate North America development, and evolve the Domestic Commissary business for franchisee cost savings[88](index=88&type=chunk) - The International Transformation Plan involves establishing regional hubs and optimizing the UK market, including closing **43 underperforming company-owned stores**, which is expected to improve long-term profitability[91](index=91&type=chunk)[95](index=95&type=chunk) Q1 2024 vs Q1 2023 Key Performance Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenues | $513.9M | $527.0M | | Operating Income | $33.7M | $37.8M | | Adjusted Operating Income (Non-GAAP) | $43.2M | $39.2M | | Diluted EPS | $0.44 | $0.65 | | Adjusted Diluted EPS (Non-GAAP) | $0.67 | $0.68 | Q1 2024 Comparable Sales Growth (Constant Dollar) | Segment | Comparable Sales Growth | | :--- | :--- | | Domestic Company-owned restaurants | (3.0)% | | North America franchised restaurants | (1.5)% | | North America restaurants | (1.8)% | | International restaurants | (2.6)% | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) - Total revenues decreased by **$13.1 million (2.5%)** in Q1 2024, primarily due to lower North America commissary revenues, a decline in Domestic Company-owned restaurant sales, and lower marketing fund revenues[99](index=99&type=chunk) - International revenues increased by **$9.2 million (29.4%)**, mainly due to the acquisition of 118 UK franchisee restaurants in 2023, though excluding this impact, international revenues would have decreased slightly[98](index=98&type=chunk)[104](index=104&type=chunk) - Operating income decreased by **$4.1 million to $33.7 million**, while adjusted operating income (non-GAAP) increased by **$4.1 million to $43.2 million**, driven by improved profitability in Domestic Company-owned restaurants and North America commissaries[117](index=117&type=chunk) - General and Administrative (G&A) expenses increased by **$6.6 million**, largely due to **$9.5 million** in costs related to the International Transformation Plan[113](index=113&type=chunk) - The effective tax rate rose to **34.2%** in Q1 2024 from **21.6%** in Q1 2023, driven by non-deductible impairment charges from the international restructuring and a tax shortfall from stock-based compensation[122](index=122&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) - Cash from operating activities decreased significantly to **$12.0 million** in Q1 2024 from **$40.8 million** in Q1 2023, mainly due to unfavorable working capital changes related to the timing of payments[129](index=129&type=chunk)[130](index=130&type=chunk) - The company had a negative free cash flow of **($1.1) million** in Q1 2024, compared to a positive free cash flow of **$22.4 million** in Q1 2023[145](index=145&type=chunk) - No shares were repurchased in Q1 2024, while in Q1 2023, the company repurchased **2.5 million shares** for **$209.6 million**, with approximately **$90.2 million** remaining available under the current share repurchase program[52](index=52&type=chunk)[142](index=142&type=chunk) - A quarterly dividend of **$0.46 per share** was paid in Q1 2024, totaling **$15.1 million**, and the Board declared a second-quarter dividend of **$0.46 per share** to be paid in May 2024[54](index=54&type=chunk)[143](index=143&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks including interest rate fluctuations on variable-rate debt, foreign currency exchange rate risk from international operations, and commodity price volatility for key ingredients like cheese - The company is exposed to interest rate changes on its revolving credit facilities and uses interest rate swaps to mitigate this risk[151](index=151&type=chunk) - Foreign currency fluctuations had a favorable impact of **$1.0 million** on international revenues but an unfavorable impact of **$0.9 million** on operating income in Q1 2024[153](index=153&type=chunk) - The company faces commodity price volatility for food and paper products, with cheese being the largest ingredient cost, using some forward pricing agreements but remaining exposed to market fluctuations[154](index=154&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the Interim CEO and CFO, concluded the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The Interim CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[155](index=155&type=chunk) - No changes were made in the Company's internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[156](index=156&type=chunk) [PART II. OTHER INFORMATION](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various ordinary course legal proceedings, including a **$5.0 million** settlement in principle for the 'In re Papa John's Employee & Franchise Employee Antitrust Litigation' as detailed in Note 10 - The company is involved in ordinary course lawsuits and has made accruals where appropriate, with specific details incorporated by reference from Note 10 of the financial statements[157](index=157&type=chunk)[71](index=71&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from those previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - No material changes to risk factors from the Annual Report on Form 10-K for the fiscal year ended December 31, 2023[158](index=158&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details share repurchase activity, noting no shares were repurchased under the publicly announced program in Q1 2024, though approximately **45,000 shares** were acquired from employees for tax withholding Share Repurchase Activity Q1 2024 | Fiscal Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | 1/01/2024 - 3/31/2024 | — | $ — | - The company acquired approximately **45,000 shares** from employees to satisfy minimum tax withholding obligations on vested restricted stock[161](index=161&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the first quarter of 2024 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[162](index=162&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and financial statements formatted in iXBRL - Lists required exhibits, including Sarbanes-Oxley certifications and iXBRL data files[163](index=163&type=chunk)

Financial Performance - Total revenues for Q1 2024 were $514 million, a decrease of 2.5% compared to the prior year, primarily due to lower revenues in the North America commissary segment[5]. - Operating income for Q1 2024 was $34 million, an 11% decrease year-over-year, while adjusted operating income increased by 10% to $43 million due to improved restaurant-level margins[4]. - Diluted earnings per share were $0.44, down from $0.65 in Q1 2023; adjusted diluted earnings per share was $0.67 compared to $0.68 in the prior year[10]. - Net income attributable to the Company for Q1 2024 was $14.6 million, a decline of 34.9% compared to $22.4 million in Q1 2023[37]. - Adjusted operating income increased to $43.2 million from $39.2 million, reflecting a growth of 10.5% year-over-year[30]. - Diluted earnings per common share decreased to $0.44, down from $0.65 in the prior year, representing a decline of 32.3%[30]. Sales and Revenue Trends - North America comparable sales decreased by 2%, with Domestic Company-owned restaurants down 3% and North America franchised restaurants down 2%; International comparable sales were down 3%[3]. - Global system-wide restaurant sales were $1.23 billion, a 0.9% decrease from the prior year quarter, impacted by the timing of a high-volume week in the previous year[7]. - Domestic Company-owned restaurant sales decreased to $176.2 million, down 2.9% from $179.9 million year-over-year[37]. - International revenues rose to $40.7 million, an increase of 29.4% compared to $31.5 million in the same quarter last year[37]. Cash Flow and Dividends - Free cash flow was an outflow of $1.1 million for Q1 2024, compared to inflows of $22.4 million in the prior year, primarily due to unfavorable working capital changes[14]. - Cash dividends paid in Q1 2024 totaled $15.1 million, with a declared second quarter dividend of $0.46 per common share[16]. - Dividends paid to common stockholders increased slightly to $15,068 thousand from $14,603 thousand, reflecting a commitment to return capital to shareholders[40]. Assets and Liabilities - Total current assets decreased to $225.9 million from $231.0 million as of December 31, 2023[35]. - Total liabilities decreased to $1.29 billion from $1.32 billion at the end of 2023[35]. - The Company reported a cash and cash equivalents balance of $27.8 million, down from $40.6 million at the end of 2023[35]. - Cash and cash equivalents at the end of the period were $27,768 thousand, down from $46,708 thousand, a decline of 40.5%[40]. Operational Changes and Initiatives - The company opened 8 net new units in Q1 2024, with plans for over 20% net unit growth in North America relative to 2023[3]. - The company is focused on its "Back to Better 2.0" and International Transformation initiatives to drive sustainable growth[2]. - The board is conducting a search for a new CEO to lead the company into its next growth phase[2]. - The Company incurred $9.5 million in international restructuring costs during the quarter, primarily related to planned store closures in the UK[33]. Cash Flow Activities - Net cash provided by operating activities fell to $11,987 thousand, down 70.6% compared to $40,788 thousand in the prior year[40]. - Net cash used in investing activities was $10,152 thousand, a decrease from $18,275 thousand year-over-year[40]. - Net cash used in financing activities increased to $14,602 thousand from $23,212 thousand, reflecting a reduction in cash outflows[40]. - The company experienced a significant decrease in net proceeds from revolving credit facilities, dropping to $5,300 thousand from $208,200 thousand[40]. Asset Utilization - Accounts receivable increased significantly by $9,084 thousand compared to $2,182 thousand in the previous year[40]. - Depreciation and amortization expenses rose to $17,674 thousand, up from $14,721 thousand, indicating increased asset utilization[40]. - The company reported an impairment loss of $7,554 thousand, which was not present in the prior year[40].

Papa John's International, Inc. (PZZA) is scheduled to report first-quarter 2024 results on May 9 before the opening bell. In the last reported quarter, its earnings beat the Zacks Consensus Estimate by 24.7%.Q1 EstimatesThe Zacks Consensus Estimate for earnings is pegged at 58 cents per share, suggesting a decline of 14.7% from the prior-year quarter. Over the past 30 days, the consensus estimate for earnings has witnessed downward revisions of 1.7%. The consensus mark for revenues is pegged at $543.9 mill ...

Wall Street analysts forecast that Papa John's (PZZA) will report quarterly earnings of $0.58 per share in its upcoming release, pointing to a year-over-year decline of 14.7%. It is anticipated that revenues will amount to $543.94 million, exhibiting an increase of 3.2% compared to the year-ago quarter.The consensus EPS estimate for the quarter has been revised 1.4% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial ...

Papa John’s International, Inc. (PZZA) strengthens its partnership with franchisee Nadeem Bajwa and his company, The Bajco Group. The collaboration aims to expand PZZA's presence in North America, with plans to open 50 new stores by 2028. The Bajco Group, a long-term franchisee, has been integral to PZZA's growth, making this expansion a strategic move for the company.The new agreement will expand Papa John’s footprint in The Bajco Group’s existing markets across the Midwest and Arizona, Pennsylvania and Fl ...