Papa John’s International (NASDAQ:PZZA) Announces Quarterly Earnings Results

Papa John’s International (NASDAQ:PZZA) posted its earnings results on Thursday. The company reported $0.16 earnings per share for the quarter, hitting the consensus estimate of $0.16, FiscalAI reports. The company had revenue of $454.84 million for the quarter, compared to analyst estimates of $459.48 million. Papa John’s International had a net margin of 1.34% and a negative return on equity of 10.98%. The business’s revenue for the quarter was down 10.5% compared to the same quarter last year. During the same period last year, the business posted $0.32 earnings per share.

Here are the key takeaways from Papa John’s International’s conference call:

• Third-quarter performance weakened: Global system sales fell 5.6%, revenue declined 10.5% and adjusted EBITDA dropped $10 million. Free cash flow was $19 million for the first nine months, versus $59 million a year earlier.
• 2026 outlook reflects continued pressure: Papa John’s expects system-wide sales to decline about 5%, North American comparable sales to fall about 8% and adjusted EBITDA of approximately $175 million. Management said its fourth-quarter assumptions are similar to Q3 and do not include an improvement in the consumer environment.
• Unbox Better is the company’s new turnaround plan, focused on improving core food quality, value, customer loyalty and restaurant execution. Franchisees approved the new marketing framework with 98% of votes cast, but management cautioned that customer recognition and better results will take time.
• Cost reductions and franchisee support are central to the plan: Papa John’s reported $21 million in supply-chain savings year to date and remains on track for at least $60 million by 2028. It is also reducing supply-chain margins and rolling back its technology fee to support franchisee economics, with about $35 million of supplemental investment expected to continue into 2027.
• International results were mixed: Comparable sales declined 1.8%, pressured by the Middle East, parts of Latin America and China, while the U.K. grew 7.2% year over year. The company has closed 239 restaurants systemwide year to date, including 146 in North America, and said sales are transferring to nearby locations.

Papa John’s International Price Performance

Shares of NASDAQ PZZA traded down $0.16 during mid-day trading on Friday, hitting $19.73. 1,707,773 shares of the stock traded hands, compared to its average volume of 1,393,312. The firm has a 50 day simple moving average of $20.07 and a two-hundred day simple moving average of $29.62. Papa John’s International has a twelve month low of $17.69 and a twelve month high of $48.83. The company has a market cap of $649.51 million, a PE ratio of 13.12, a price-to-earnings-growth ratio of 2.66 and a beta of 1.17.

Trending Headlines about Papa John’s International

Here are the key news stories impacting Papa John’s International this week:

• Positive Sentiment: Zacks reported that third-quarter earnings of $0.16 per share beat its consensus estimate. However, earnings were down from $0.32 a year earlier, and other coverage said results matched the $0.16 consensus. Zacks earnings article
• Neutral Sentiment: The company outlined a plan to jump-start growth, though the provided coverage does not detail its measures or expected impact. Article on Papa John’s growth plan
• Negative Sentiment: Papa John’s cut its full-year outlook again as the turnaround takes longer than expected. Third-quarter revenue was $454.84 million, below the $459.48 million estimate and down 10.5% year over year; EPS also fell to $0.16 from $0.32. The company cited competition and cautious diners as headwinds. Bloomberg outlook coverage
• Negative Sentiment: Stephens reaffirmed its “equal weight” rating and set a $19 price target, slightly below the cited share price, signaling limited near-term upside in its view. Stephens rating information

Wall Street Analysts Forecast Growth

PZZA has been the topic of a number of research analyst reports. Weiss Ratings cut shares of Papa John’s International from a “sell (d+)” rating to a “sell (d)” rating in a report on Thursday, October 8th. Bank of America downgraded Papa John’s International from a “neutral” rating to an “underperform” rating and lowered their price target for the stock from $42.00 to $34.00 in a research report on Monday, July 13th. Stephens restated an “equal weight” rating and issued a $19.00 price objective on shares of Papa John’s International in a research note on Thursday. Mizuho cut their price objective on Papa John’s International from $26.00 to $20.00 and set a “neutral” rating for the company in a research report on Friday, October 30th. Finally, Wall Street Zen upgraded Papa John’s International from a “sell” rating to a “hold” rating in a research note on Sunday, July 26th. Seven research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus target price of $28.57.

Papa John’s International Company Profile

Papa John’s International, Inc operates and franchises restaurants under the Papa Johns brand. The company specializes in pizza and related food products, serving customers primarily through delivery, carryout and dine-in locations, as well as online and mobile ordering platforms.

Its menu includes a variety of pizzas with different crusts and toppings, along with sides such as breadsticks, chicken products and desserts. Papa Johns also offers soft drinks, dipping sauces and other complementary items, with menus and promotions adapted to local markets.

Founded in 1984 by John Schnatter, Papa Johns has grown into an international restaurant system with locations across North America and various markets in Europe, the Middle East, Latin America and other regions.