Papa John's (PZZA) Q3 Earnings and Revenues Miss Estimates

Core Insights - Papa John's reported quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.40 per share, and down from $0.43 per share a year ago, representing an earnings surprise of -20.00% [1] - The company posted revenues of $508.15 million for the quarter ended September 2025, which was 3.37% below the Zacks Consensus Estimate, and slightly up from $506.81 million year-over-year [2] - The stock has added about 0.5% since the beginning of the year, underperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.57 on revenues of $544.81 million, and for the current fiscal year, it is $1.77 on revenues of $2.12 billion [7] - The estimate revisions trend for Papa John's was unfavorable ahead of the earnings release, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Retail - Restaurants industry, to which Papa John's belongs, is currently in the bottom 12% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]