Papa John’s International (NASDAQ:PZZA) Posts Earnings Results, Meets Estimates

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

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 Stock Down 0.8%

Shares of PZZA traded down $0.16 during trading hours on Friday, reaching $19.73. The company’s stock had a trading volume of 1,707,773 shares, compared to its average volume of 1,393,312. Papa John’s International has a 1-year low of $17.69 and a 1-year high of $48.83. The company has a 50 day moving average of $20.07 and a two-hundred day moving average of $29.62. The firm has a market cap of $649.51 million, a price-to-earnings ratio of 13.12, a P/E/G ratio of 2.66 and a beta of 1.17.

Analysts Set New Price Targets

A number of analysts have commented on PZZA shares. Wall Street Zen upgraded Papa John’s International from a “sell” rating to a “hold” rating in a research report on Sunday, July 26th. Bank of America cut Papa John’s International from a “neutral” rating to an “underperform” rating and dropped their price target for the company from $42.00 to $34.00 in a research report on Monday, July 13th. Stephens reaffirmed an “equal weight” rating and set a $19.00 price target on shares of Papa John’s International in a research note on Thursday. Weiss Ratings lowered shares of Papa John’s International from a “sell (d+)” rating to a “sell (d)” rating in a research report on Thursday, October 8th. Finally, UBS Group lowered their price objective on shares of Papa John’s International from $28.00 to $21.00 and set a “neutral” rating on the stock in a research note on Monday. Seven equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $28.57.

Key Stories Impacting 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

About Papa John’s International

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.