Papa John's International (NASDAQ:PZZA) Stock Rating Raised to Hold at Zacks Research

Key Points

• Zacks Research upgraded Papa John’s International to “Hold” from “Strong Sell,” though the broader analyst consensus remains “Reduce,” with seven Hold and two Sell ratings and an average price target of $31.29.
• PZZA shares opened at $18.73, near their 52-week low of $18.67 and well below the 52-week high of $55.74, with the stock down 1.3% and trading below its 50-day and 200-day moving averages.
• In its latest quarter, Papa John’s reported adjusted earnings of $0.46 per share and revenue of $482.4 million, slightly beating estimates, but revenue declined 8.8% year over year; analysts expect full-year EPS of $1.16.

Papa John's International (NASDAQ:PZZA - Get Free Report) was upgraded by investment analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Monday, Zacks reports.

Other equities analysts also recently issued research reports about the company. Benchmark downgraded Papa John's International from a "buy" rating to a "hold" rating in a report on Friday, August 7th. Bank of America reaffirmed an "underperform" rating and issued a $34.00 price target (down from $42.00) on shares of Papa John's International in a research report on Monday, July 13th. Stephens decreased their price objective on shares of Papa John's International from $24.00 to $19.00 and set an "equal weight" rating for the company in a report on Thursday, October 15th. Wall Street Zen upgraded Papa John's International from a "sell" rating to a "hold" rating in a research note on Sunday, July 26th. Finally, 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. Seven investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and an average price target of $31.29.

Papa John's International Stock Down 1.3%

Shares of NASDAQ PZZA opened at $18.73 on Monday. The stock's fifty day simple moving average is $21.33 and its 200 day simple moving average is $29.23. The stock has a market capitalization of $616.59 million, a price-to-earnings ratio of 13.17, a PEG ratio of 2.08 and a beta of 1.13. Papa John's International has a 52-week low of $18.67 and a 52-week high of $55.74.

Papa John's International (NASDAQ:PZZA - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.01. Papa John's International had a negative return on equity of 10.98% and a net margin of 1.34%. The firm had revenue of $482.40 million for the quarter, compared to the consensus estimate of $481.25 million. During the same quarter in the previous year, the company earned $0.41 EPS. The business's revenue for the quarter was down 8.8% compared to the same quarter last year. As a group, analysts anticipate that Papa John's International will post 1.16 earnings per share for the current year.

Institutional Investors Weigh In On Papa John's International

A number of hedge funds and other institutional investors have recently bought and sold shares of PZZA. Daytona Street Capital LLC bought a new position in Papa John's International in the 3rd quarter worth approximately $94,000. Chiron Capital Management LLC acquired a new position in Papa John's International in the third quarter valued at about $439,000. GAMMA Investing LLC boosted its stake in Papa John's International by 183.1% during the 3rd quarter. GAMMA Investing LLC now owns 4,434 shares of the company's stock worth $87,000 after acquiring an additional 2,868 shares during the last quarter. Farther Finance Advisors LLC boosted its position in shares of Papa John's International by 63.6% during the third quarter. Farther Finance Advisors LLC now owns 3,768 shares of the company's stock worth $74,000 after purchasing an additional 1,465 shares in the last quarter. Finally, Moody National Bank Trust Division grew its stake in Papa John's International by 2.3% in the third quarter. Moody National Bank Trust Division now owns 42,439 shares of the company's stock valued at $836,000 after acquiring an additional 954 shares during the period.

Key Headlines Impacting Papa John's International

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

• Positive Sentiment: Seeking Alpha upgraded PZZA to Strong Buy, arguing that the substantial stock decline has created a valuation disconnect. The company’s restructuring—store closures, cost reductions and a focus on product quality—along with its Walmart delivery partnership could support margin expansion and EBITDA growth. Management expects at least 200 basis points of four-wall EBITDA improvement by 2028, while suspending the dividend could unlock approximately $61 million in annual free cash flow. Papa John's: This Painful Reset Could Set The Stage For Recovery
• Neutral Sentiment: Papa John’s Canada is bringing back its limited-time Jack-o’-Lantern Pizza for Halloween. The seasonal promotion may support short-term customer traffic, but it is unlikely to materially change the company’s broader financial outlook. Papa John's Jack-o'-Lantern Pizza Returns
• Negative Sentiment: Multiple law firms are publicizing a securities class action against Papa John’s and urging investors who purchased shares from August 7, 2025 through August 5, 2026 to seek lead-plaintiff status before the November 2, 2026 deadline. The complaints allege that the company misrepresented North American comparable-sales trends and its business prospects before reporting an 8.3% comparable-sales decline, resetting 2026 guidance and suspending its dividend. The repeated legal notices increase reputational and potential litigation risk, although the allegations have not been proven. PZZA Securities Fraud Lawsuit Deadline

About Papa John's International

Papa John's International, Inc is a restaurant company that operates and franchises Papa Johns pizza restaurants. Its menu includes pizzas made with various crusts, toppings and specialty recipes, along with sides, desserts and beverages. Customers can order through delivery, carryout and digital ordering channels.

Founded in 1984 by John Schnatter in Jeffersonville, Indiana, the company has grown into an international quick-service restaurant brand. Papa Johns serves customers across the United States and in international markets through a combination of company-operated restaurants and franchised locations.

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