Papa John's (PZZA) Tops Q2 Earnings Estimates

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]