Papa John’s International (NasdaqGS:PZZA) Q4 2025 Earnings call February 26, 2026 08:00 AM ET Speaker4Hello. Thank you for standing by. Welcome to Papa John's fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask the question during the session, you will need to press star one one on your telephone. You would hear an automated message advising your hand is rai ...

The hamburger restaurant chain sector has a huge obstacle to clear this year, competing against the nation's most popular fast-food concept: fried chicken chains. Fried chicken dining chains, including Raising Cane's Chicken Fingers and Chick-fil-A, began 2026 as the most popular subsector of the fast-food industry, and will lead the sector if the concept continues the trend it set over the last year. Fried chicken restaurant traffic rises Traffic to fried chicken concepts rose 3% in the year ending Se ...

Core Insights - Dutch Bros Inc. is strategically shifting towards enhancing its breakfast offerings through a systemwide hot food rollout, aiming to improve its morning-daypart relevance, an area where it has historically underperformed [1][10] - The company has introduced ovens to approximately 160 shops, with the initiative expected to contribute to long-term revenue growth rather than being a short-term sales catalyst [4][10] Operational Strategy - The operational design of the rollout focuses on ensuring that ovens finish cooking faster than the average drink-making time, maintaining throughput during peak hours [2] - Approximately 25% of the projected 2025 shop base cannot accommodate ovens due to legacy layouts, but this ratio is expected to decline as new food-capable builds increase [3] Competitive Landscape - Competitors like McDonald's and Wendy's are also repositioning their breakfast strategies to enhance traffic and unit-level performance [5] - McDonald's is focusing on its revamped Extra Value Meal architecture, which now represents about 30% of U.S. transactions, supported by significant corporate co-investment [6] - Wendy's is implementing operational upgrades and product-led innovations to improve morning guest experiences and sustain breakfast relevance [7] Financial Performance - Dutch Bros shares have declined by 5.5% over the past three months, compared to a 2.4% decline in the industry [8] - The stock trades at a forward price-to-sales ratio of 5.04, which is above the industry average of 3.21 [11] - The Zacks Consensus Estimate for Dutch Bros' fiscal 2025 and 2026 earnings per share (EPS) indicates year-over-year increases of 36.7% and 27.6%, respectively [13]

Core Insights - Wendy's Company reported better-than-expected third-quarter earnings with adjusted earnings per share of 24 cents, surpassing the analyst consensus estimate of 20 cents [1] - Quarterly sales reached $549.516 million, a 3% decline year over year, but exceeded the expected $534.457 million [1] - Comparable sales at company-operated restaurants outperformed the system by 4% during the third quarter [2] Financial Outlook - The company reaffirmed its 2025 adjusted EPS outlook at a range of 82 cents to 89 cents, compared to the analyst consensus estimate of 86 cents [2] - Following the earnings announcement, analysts adjusted their price targets for Wendy's stock [3] Analyst Ratings and Price Targets - TD Cowen analyst Andrew M. Charles maintained a Hold rating and lowered the price target from $11 to $9 [5] - Evercore ISI Group analyst David Palmer maintained an In-Line rating and reduced the price target from $12 to $11 [5] - RBC Capital analyst Logan Reich maintained a Sector Perform rating and cut the price target from $10 to $9 [5]

Group 1 - Wingstop Inc. reported a fiscal Q3 2025 earnings with 114 net new openings and a net new unit growth of 19.3% [1] - Adjusted EBITDA grew by 18.6% to $63.7 million, marking the highest quarter on record for the company [1] - System-wide sales increased by 10.0% to $1.4 billion, with digital sales comprising 72.8% of total system-wide sales [2] Group 2 - Total revenue grew by 8.1% to $175.7 million, while net income reached $28.5 million, or $1.02 per diluted share, reflecting a growth of 10.7% [2] - Barclays analyst Jeff Bernstein maintained a bullish stance on Wingstop, assigning a Buy rating with a price target of $330 [3] - Wingstop focuses on chicken wings and offers a variety of hand-sauced, cooked-to-order menu items [3]

Core Insights - Wingstop Inc.'s earnings estimates for fiscal 2025 and 2026 have increased by 0.5% to $3.90 per share and 0.8% to $5.03 per share, reflecting year-over-year growth of 6.6% and 29% respectively [1][2] Financial Performance - WING stock has surged 50.2% over the past three months, outperforming the Zacks Retail - Restaurants industry, the broader Retail-Wholesale sector, and the S&P 500 index [3] - The fiscal 2025 EPS estimates indicate a 6.6% year-over-year growth, supported by the new AI-powered Smart Kitchen, which has halved order times and is now implemented in over 200 locations [7][10] Strategic Initiatives - The newly developed Wingstop Smart Kitchen aims to enhance guest visits and delivery times, featuring AI-driven demand forecasting and a customer-facing order tracking system [9] - Wingstop is focusing on menu innovation, digital enhancements, and expanding delivery channels to drive brand awareness and guest traffic, including a recent pop-up bar in Brooklyn dedicated to chicken tenders [12] Shareholder Value - The company has initiated a share repurchase program, retiring 2,196,768 shares at an average price of $258.58 per share, and declared a quarterly dividend of 27 cents per share, totaling approximately $7.5 million [13][14] Market Position - WING is trading above both its 50- and 200-day simple moving averages, indicating strong market sentiment and confidence in its financial health [15] - The stock is currently trading at a premium compared to industry peers on a forward 12-month price-to-earnings ratio basis, reflecting strong market potential [16][17] Analyst Sentiment - Analysts show optimism for WING stock, with 15 out of 23 recommendations indicating a "Strong Buy" and two indicating a "Buy," representing 65.2% and 8.7% of all recommendations respectively [19]

Core Insights - Wingstop Inc. reported first-quarter earnings per share of 99 cents, exceeding the street view of 90 cents, with quarterly sales of $171.1 million, reflecting a year-over-year increase of 17.4% [1] - Piper Sandler analyst Brian Mullan maintained a Neutral rating on the stock, slightly raising the price forecast from $271 to $272 [1] - Stephens analyst Jim Salera reiterated an Overweight rating with a price forecast of $385, highlighting the strong performance of the AI-powered Smart Kitchen and record new guest acquisition in March [4] Financial Performance - First-quarter earnings per share: 99 cents, beating the expected 90 cents [1] - Quarterly sales: $171.1 million, a 17.4% increase year-over-year, slightly above the analyst consensus estimate of $170.92 million [1] - FY26 revenue estimates were raised by Piper Sandler from $843 million to $856 million and by Stephens from $833.9 million to $837.4 million [3][5] Product Performance - Positive feedback on the re-launched chicken tenders, with management noting that orders are primarily from individual customers, particularly during lunch [2] - The introduction of the chicken sandwich previously received a similar positive response, indicating strong consumer interest [2] Market Outlook - Management acknowledged some consumer pullback, but indicated it was limited to specific areas rather than widespread, shaping their outlook for the second half of the year [3] - Wingstop is viewed as a highly efficient and predictable growth story in the Quick Service Restaurant (QSR) space [4]