Papa John’s Serves Up Q4 Earnings Beat, But Retail Appetite Is Half-Baked

Papa John's International (PZZA) stock rose more than 1.4% on Thursday as the pizza chain reported better-than-expected fourth-quarter earnings. However, retail sentiment remained cautious.

Its Q4 earnings per share came in at $0.63, above the $0.50 analysts estimated, according to Stocktwits data. Q4 revenue came in at $530.77 million, beating the estimated $516.58 million.

Its North America comparable sales declined 4% from a year ago because of corresponding decline in domestic company-owned restaurants and North America franchised restaurants. International comparable sales, however, went up 2% compared with the prior year period.

"I am pleased with the early progress we are seeing in our transformation as we work to improve our value perception, simplify our operations, and enhance our digital and loyalty experiences. These efforts helped to deliver results consistent with our fourth quarter expectations," said Todd Penegor, president and CEO.

Penegor added Papa John's is moving forward with urgency to execute on its strategic initiatives to drive sales momentum in the near term while meaningfully increasing profitability over time.

For 2025, it expects system-wide sales to grow between 2% and 5%, with North American comparable sales expected to be flat or rise to 2%. International comparable sales are projected to be flat and to grow by 2%.

Sentiment on Stocktwits remained 'neutral' compared to a week ago. Message volume was also in the 'normal' zone.

One commenter remarked how the company’s stock isn’t moving as high because it’s not an AI company.

Last month, UBS raised Papa John's price target to $56 from $47 with a ‘Neutral’ rating on the shares, The Fly reported.  

According to the firm, its Q3 results highlighted ongoing same-store sales pressures and noted the company’s focus on strategic plans to improve results into 2025.

Papa John's has more than 5,900 locations in approximately 50 countries and territories.

Papa John's stock is up 14.7% year-to-date.

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