Papa John's Q1 Earnings & Revenues Beat Estimates, Stock Up

Core Insights - Papa John's International, Inc. reported first-quarter fiscal 2025 results with adjusted earnings and revenues exceeding the Zacks Consensus Estimate, although the bottom line declined year over year [1][4] Financial Performance - Adjusted earnings per share (EPS) were 36 cents, beating the consensus estimate of 33 cents by 9.1%, while the prior-year quarter's adjusted EPS was 67 cents [4] - Quarterly revenues reached $518.3 million, surpassing the consensus mark of $510 million by 1.7%, and increased by 0.9% year over year [4] - Net income for the quarter totaled $9.3 million, down from $14.9 million in the prior-year quarter [8] - Total costs and expenses rose to $494.3 million from $480.2 million in the prior-year quarter [8] Sales and Market Trends - Total comparable sales declined by 1.3% year over year, compared to a 2% decline in the prior-year quarter [5] - Domestic company-owned restaurant comps fell by 4.6% year over year, while North America's franchised restaurants saw a 2.3% decline [6] - International restaurant comps increased by 3.2% year over year, contrasting with a 2.6% decline in the prior-year quarter [7] Strategic Initiatives - The company plans to enhance its momentum by introducing new crust flavors, pizza formats, toppings, and dipping options to attract new customers [3] - Management attributed recent sales momentum to a balanced barbell pricing strategy, which has driven traffic and transactions [2] Future Guidance - For fiscal 2025, the company anticipates system-wide sales growth of 2-5%, with comparable sales in North America and International expected to be flat to up 2% [11] - Adjusted EBITDA is projected to be between $200 million and $220 million, with capital expenditures expected to be $75-$85 million [11] Operational Developments - As of March 30, 2025, Papa John's had a system-wide restaurant count of 6,019, with operations in 50 countries and territories globally [10] - The company opened two new restaurants in North America during the fiscal first quarter but closed 13 restaurants in international markets [10]