Papa John’s International (NASDAQ:PZZA) Posts Earnings Results, Misses Expectations By $0.08 EPS

Papa John’s International (NASDAQ:PZZA) released its earnings results on Thursday. The company reported $0.32 earnings per share for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.08), FiscalAI reports. Papa John’s International had a negative return on equity of 10.71% and a net margin of 1.37%.The firm had revenue of $478.61 million for the quarter, compared to analysts’ expectations of $485.51 million. During the same quarter in the previous year, the company posted $0.36 earnings per share. The firm’s quarterly revenue was down 7.7% on a year-over-year basis.

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

• International momentum: Global international comparable sales rose 3.6% (six consecutive quarters of positive comps) with the U.K. +11%, Middle East +9% and Asia Pacific +5%, driving improved revenue outside North America.
• North America softness: North America comps declined mid-single digits driven by fewer transactions and lower new-customer acquisition (weather cost ~40 bps), even as pizzas-per-order rose 5% and loyalty additions remained strong.
• Rebuilt innovation and marketing: Management launched Pan Pizza, Oven?Toasted Sandwiches, Cheesy Garlic Bread, a Toy Story 5 collaboration (including new 8″ personal pizzas) and retail garlic sauce to drive trial, add?ons and broaden the addressable market.
• Margin and portfolio actions: Papa John’s captured $7M of supply?chain benefits in Q1, expects at least $25M in 2026 and $60M by 2028 (targeting ~160 bps four?wall EBITDA improvement), closed 44 underperforming stores and is progressing refranchising to move toward an asset?light model.
• 2026 outlook and liquidity: Company reiterates 2026 guidance of global system sales flat to low?single?digit declines, North America comps -2% to -4%, consolidated adjusted EBITDA $200–$210M, with available liquidity around $498M and Q1 free cash flow outflow of $6M.

Papa John’s International Stock Down 5.2%

Papa John’s International stock traded down $1.71 during mid-day trading on Friday, hitting $31.14. The company had a trading volume of 1,490,885 shares, compared to its average volume of 867,067. The stock has a market cap of $1.02 billion, a price-to-earnings ratio of 37.52, a PEG ratio of 2.83 and a beta of 1.18. Papa John’s International has a 1 year low of $29.55 and a 1 year high of $55.74. The business has a fifty day moving average of $34.58 and a 200 day moving average of $38.12.

Papa John’s International Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Monday, May 18th will be paid a $0.46 dividend. This represents a $1.84 annualized dividend and a yield of 5.9%. The ex-dividend date is Monday, May 18th. Papa John’s International’s dividend payout ratio is currently 206.74%.

More Papa John’s International News

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

• Positive Sentiment: Benchmark kept a buy rating on Papa John’s and still sees meaningful upside, although it lowered its price target from $50 to $45. Benchmark price target update
• Positive Sentiment: Stephens reaffirmed an overweight rating with a $40 price target, signaling confidence that the stock can recover from current levels. Stephens rating update
• Neutral Sentiment: Papa John’s launched a limited-time marketing campaign, “Skies to Pies,” turning Spirit Airlines loyalty frustration into a free-pizza promotion. The move may support brand awareness, but its near-term financial impact is unclear. Business Wire promotion
• Neutral Sentiment: The company declared a quarterly dividend of $0.46 per share, which may appeal to income-focused investors, though it is not the main driver of the stock’s move.
• Negative Sentiment: Piper Sandler cut its price target from $32 to $30 and maintained a neutral rating, reflecting limited upside near the current share price. Piper Sandler price target update
• Negative Sentiment: First-quarter results missed estimates, with EPS of $0.32 versus $0.40 expected and revenue of $478.6 million below forecasts, while sales fell 7.7% year over year. Papa John’s press release
• Negative Sentiment: Management said inflation-weary customers are trading down to smaller pizzas and skipping sides and desserts, which is pressuring sales and profitability. WSJ article

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Weiss Ratings restated a “hold (c-)” rating on shares of Papa John’s International in a research note on Friday, March 27th. Benchmark dropped their target price on Papa John’s International from $50.00 to $45.00 and set a “buy” rating on the stock in a report on Friday. Zacks Research raised Papa John’s International from a “strong sell” rating to a “hold” rating in a report on Monday, January 26th. Piper Sandler dropped their target price on Papa John’s International from $32.00 to $30.00 and set a “neutral” rating on the stock in a report on Friday. Finally, Stephens reissued an “overweight” rating and issued a $40.00 target price on shares of Papa John’s International in a report on Friday. Three analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, Papa John’s International has a consensus rating of “Hold” and an average target price of $42.78.

Hedge Funds Weigh In On Papa John’s International

Several hedge funds have recently made changes to their positions in PZZA. Marshall Wace LLP purchased a new position in shares of Papa John’s International during the fourth quarter worth about $12,969,000. Quinn Opportunity Partners LLC purchased a new position in shares of Papa John’s International during the fourth quarter worth about $12,767,000. Earnest Partners LLC grew its holdings in shares of Papa John’s International by 19.6% during the fourth quarter. Earnest Partners LLC now owns 1,947,248 shares of the company’s stock worth $74,950,000 after purchasing an additional 318,816 shares during the last quarter. Gumshoe Capital Management LLC purchased a new position in shares of Papa John’s International during the fourth quarter worth about $10,034,000. Finally, Balyasny Asset Management L.P. purchased a new position in shares of Papa John’s International during the fourth quarter worth about $8,729,000.

About Papa John’s International

Papa John’s International, Inc is a leading American pizza restaurant chain known for its focus on high-quality ingredients and consistent product offerings. Founded in 1984 by John Schnatter in Jeffersonville, Indiana, the company has grown to operate thousands of restaurants across the United States and in more than 40 international markets. Papa John’s restaurants are primarily franchised, supported by a network of corporate-owned outlets that together drive brand standards, operational guidance and marketing efforts.

The core menu at Papa John’s centers on a variety of hand-tossed and pan pizzas made with a signature stone-baked crust and topped with real cheese, vine-ripened tomato sauce and premium meats and vegetables.