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 ...

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 ...