Company Overview - Papa John's shares increased by 8.1% to close at $41.76, with trading volume significantly higher than usual, compared to a 2.5% gain over the past four weeks [1] Business Strategy - The company is benefiting from its "Back to BETTER 2.0" strategy, which includes product innovation, marketing enhancements, unit development, supply chain efficiency improvements, and leveraging the Papa Rewards loyalty program [2] Financial Performance Expectations - The upcoming quarterly earnings are expected to be $0.48 per share, reflecting a year-over-year decline of 47.3%, with revenues projected at $513 million, down 10.2% from the previous year [3] - The consensus EPS estimate has been revised 3.3% lower in the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Industry Context - Papa John's is part of the Zacks Retail - Restaurants industry, where Cheesecake Factory's consensus EPS estimate has increased by 1.1% to $0.91, representing a year-over-year change of 13.8% [4][5]

Core Insights - Papa John's International, Inc. reported preliminary results for the fourth quarter and fiscal year 2024, with a scheduled release of detailed results on February 27, 2025 [1] Sales Performance - In the fiscal fourth quarter ending December 29, 2024, global system-wide sales reached nearly $1.2 billion, representing an 8% decrease year over year; excluding the 53rd week in 2023, sales were roughly flat [2] - For fiscal 2024, global system-wide sales totaled about $4.9 billion, indicating a 3% decline from 2022 levels; excluding the additional 53rd week, sales were down approximately 1% [2] North American Market - Comparable sales in North America for the fourth quarter of fiscal 2024 fell by 4% year over year, attributed to declines in both transactions and ticket sizes; franchised restaurants saw a 4% drop, while domestic company-owned restaurants experienced a 6% decline [3] - For fiscal 2024, North America comparable sales were down 4% year over year, driven by a 3% fall in transactions and a 1% fall in ticket sizes [4] International Market - International comparable sales in the fiscal fourth quarter increased by 2% year over year [3] - In fiscal 2024, international comparable sales were down approximately 1% year over year [4] Store Developments - In fiscal 2024, Papa John's achieved a total of 124 net unit openings, including 81 in North America and 43 in international markets; the company had previously anticipated 50-60 new restaurant openings in North America [5] - The company celebrated the opening of its 6,000th restaurant and expressed appreciation for franchise partners' enthusiasm for growth prospects, reiterating plans to expand in key high-growth markets globally [6] Stock Performance and Market Outlook - Papa John's recent performance has raised concerns about its growth trajectory, with declining sales and weakening transaction volumes despite efforts under the Back to BETTER 2.0 strategy [7] - The stock trades at a forward P/E ratio of 15.64, significantly below the industry average of 24.41, which may indicate challenges; earnings estimates for fiscal 2025 have been revised downward, reflecting skepticism among analysts [8] - In the past three months, shares of Papa John's have declined by 27%, compared to a 6% fall in the industry [11]

I'm an Equity Analyst and Accountant specializing in restaurant stocks, with a strong foundation in Business Administration and Accounting, complemented by an MBA in Forensic Accounting and Controllership. As the founder of Goulart's Restaurant Stocks, I lead a company focused on analyzing restaurant stocks in the U.S. market. Our coverage spans multiple segments, including QSR, fast casual, casual dining, fine dining, and family dining. We employ advanced analytical models and specialized valuation techniq ...

As the 'Battle of the Pizzas' heats up, Papa John's (NASDAQ: PZZA ) still seems to be trying to adapt to a value-driven and much more competitive environment, with increasingly tightI'm an Equity Analyst and Accountant specializing in restaurant stocks, with a strong foundation in Business Administration and Accounting, complemented by an MBA in Forensic Accounting and Controllership. As the founder of Goulart's Restaurant Stocks, I lead a company focused on analyzing restaurant stocks in the U.S. market. O ...

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EDMONTON, Alberta, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Papa Johns Canada teams up with Aviation American Gin to shake up National Happy Hour Day – unveiling a pepperoncini gin martini – the ‘Cini Tini. The ‘Cini Tini is more than just a cocktail – it’s a curated experience that captures the essence of both Papa Johns and Aviation American Gin. Set to spice up a cozy fall night by combining the tangy kick of Papa Johns iconic pepperoncini with the smooth and botanical notes of Aviation American Gin. “The peppe ...

Papa John’s International, Inc. (PZZA) recorded better-than-expected third-quarter fiscal 2024 results, wherein adjusted earnings and revenues topped the Zacks Consensus Estimate. However, the metrics declined on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The year-over-year performance decline was attributable to a decrease in International revenues due to the adverse impact of the U.K. company-owned restaurants and a decrease in Domestic company-owned re ...

Core Insights - Papa John's reported revenue of $506.81 million for the quarter ended September 2024, a decrease of 3.1% year-over-year, with EPS at $0.43 compared to $0.53 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $491.77 million by 3.06%, while the EPS also surpassed the consensus estimate of $0.42 by 2.38% [1] Financial Performance Metrics - The number of company-owned restaurants in the U.S. was 537, slightly below the average estimate of 539 [3] - Total restaurants in North America stood at 3,454, just shy of the 3,455 estimate [3] - Comparable sales growth for North America franchised restaurants was -5.3%, better than the -5.7% estimate [3] - Comparable sales growth for domestic company-owned restaurants was -6.7%, compared to the -6.8% estimate [3] - System-wide restaurants totaled 5,908, exceeding the estimate of 5,899 [3] - Franchised North America restaurants numbered 2,917, matching the estimate [3] - International restaurants totaled 2,454, surpassing the estimate of 2,444 [3] Revenue Breakdown - North America franchise royalties and fees generated $33.02 million, below the estimate of $33.63 million, reflecting a year-over-year decline of 5.8% [3] - International revenues were $33.02 million, slightly below the estimate of $33.18 million, with a significant year-over-year decline of 23.1% [3] - Other revenues reached $60.89 million, exceeding the estimate of $58.92 million, but showing a 3% decline year-over-year [3] - North America commissary revenues were $210.39 million, above the estimate of $195.51 million, marking a year-over-year increase of 2.7% [3] - Domestic company-owned restaurant revenues were $168.67 million, below the estimate of $169.51 million, reflecting a 4.8% decline year-over-year [3] Stock Performance - Papa John's shares have returned +20.7% over the past month, outperforming the Zacks S&P 500 composite's +3.2% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]

Papa John's (PZZA) came out with quarterly earnings of $0.43 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.38%. A quarter ago, it was expected that this pizza chain would post earnings of $0.51 per share when it actually produced earnings of $0.61, delivering a surprise of 19.61%.Over the last four quarters, the company h ...

Financial Performance - Total revenues for Q3 2024 were $506.8 million, a decrease of 3.1% compared to $522.8 million in Q3 2023[4] - Global system-wide restaurant sales were $1.19 billion, reflecting a 3% decline from the prior year quarter[5] - Operating income increased to $65.2 million, up from $31.9 million in the same quarter last year, while adjusted operating income decreased by 12.9% to $29.3 million[6] - Diluted earnings per common share rose to $1.27 from $0.48 in Q3 2023, while adjusted diluted earnings per share fell to $0.43 from $0.53[7] - Net income attributable to the Company for the three months ended September 29, 2024, was $41,808,000, up from $15,861,000, representing a 163% increase[28] - Basic earnings per share rose to $1.28, compared to $0.49 in the same quarter last year, marking a 161% increase[28] - Adjusted net income attributable to common shareholders for the nine months ended September 29, 2024, was $56,086,000, compared to $59,938,000 for the same period in 2023, indicating a decline[24] Sales and Comparable Performance - North America comparable sales decreased by 6% year-over-year, with Domestic Company-owned restaurants down 7% and North America franchised restaurants down 5%[1] - Comparable sales for Domestic Company-owned restaurants declined by 6.7% in Q3 2024, compared to a growth of 5.9% in Q3 2023[8] - Domestic company-owned restaurant sales decreased by 4% to $168,672,000 from $177,195,000 year-over-year[28] Cash Flow and Dividends - Free cash flow for the nine months ended September 29, 2024, was $9.0 million, significantly down from $76.0 million in the prior year period[10] - Cash dividends paid in Q3 2024 amounted to $15.2 million, or $0.46 per common share[12] - The Company declared dividends of $0.46 per common share, consistent with the previous year[28] Restaurant Operations and Openings - The company opened 25 net restaurants in Q3 2024, with expectations of over 100 gross openings in North America and 170 to 190 internationally for the fiscal year[1] - As of September 29, 2024, there were 5,908 Papa John's restaurants operating globally, with a net increase of 25 restaurants during the quarter[9] Costs and Expenses - Total costs and expenses decreased to $441,578,000 from $490,944,000, a reduction of approximately 10%[28] - The Company reported a significant increase in depreciation and amortization expenses to $52,528,000 from $46,815,000, reflecting a 12% increase[29] Assets and Liabilities - Total current assets decreased to $215,857,000 as of September 29, 2024, from $231,018,000 at the end of 2023[27] - Total liabilities decreased to $1,275,557,000 as of September 29, 2024, from $1,317,770,000 at the end of 2023[27] - Cash and cash equivalents decreased to $17,550,000 as of September 29, 2024, from $40,587,000 at the end of 2023[27] Challenges and Risks - The company is facing risks related to labor shortages and increased operating costs due to inflation and supply chain disruptions[18] - Future performance may be impacted by economic conditions and potential delays in new restaurant openings domestically and internationally[18] Other Financial Metrics - Net cash provided by operating activities for the nine months ended September 29, 2024, was $55,884,000, down from $126,936,000 in the prior year[29] - The company incurred international restructuring costs of $19,514,000 for the nine months ended September 29, 2024[24] - Total revenues for the three months ended September 29, 2024, were $506,807,000, a decrease of 3% compared to $522,812,000 for the same period in 2023[28]