Papa John's International, Inc. (PZZA) - What Are Investment Firms Saying About This Stock?

Key Points

• Analysts remain cautious on Papa John’s: Nine analysts give the stock a consensus “Reduce” rating, with two sells and seven holds. The average 12-month price target is $31.29, though several firms recently lowered their targets.
• Business performance is mixed: The company narrowly beat quarterly earnings and revenue estimates, but revenue fell 8.8% year over year. Near-term earnings estimates were reduced while some longer-term forecasts improved.
• Shares face significant risks: PZZA recently traded near $18.10, close to its 12-month low, and is down sharply from its $55.74 high. Proposed class-action lawsuits allege the company understated market-share and transformation risks, adding legal and reputational uncertainty.

Papa John's International, Inc. (NASDAQ:PZZA - Get Free Report) has been given a consensus recommendation of "Reduce" by the nine analysts that are covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell recommendation and seven have given a hold recommendation to the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $31.29.

A number of equities analysts have recently commented on the company. Mizuho dropped their target price on Papa John's International from $33.00 to $32.00 and set a "neutral" rating for the company in a report on Friday, July 31st. Bank of America reissued an "underperform" rating and set a $34.00 target price (down from $42.00) on shares of Papa John's International in a research report on Monday, July 13th. Wall Street Zen upgraded Papa John's International from a "sell" rating to a "hold" rating in a report on Sunday, July 26th. UBS Group lowered their price target on Papa John's International from $33.00 to $28.00 and set a "neutral" rating for the company in a research report on Friday, August 7th. Finally, Benchmark downgraded Papa John's International from a "buy" rating to a "hold" rating in a research report on Friday, August 7th.

More Papa John's International News

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

• Positive Sentiment: Some longer-term earnings estimates improved. Zacks Research raised its forecasts for Q4 2026, Q1 2027, Q3 2027, Q2 2028 and FY2028, including increasing FY2028 EPS to $1.60 from $1.54. These revisions suggest analysts see potential for earnings improvement over time, although Zacks maintained a “Hold” rating. MarketBeat Papa John's analyst estimates
• Neutral Sentiment: Analyst revisions were mixed. Zacks lowered its Q3 2026 EPS estimate to $0.10 from $0.14, reduced FY2026 EPS to $1.20 from $1.21, and cut Q1 2028 EPS to $0.40 from $0.44. The current-year consensus remains $1.16 per share, indicating limited near-term earnings momentum despite some later-year upgrades.
• Negative Sentiment: Class-action litigation is the dominant risk. Several law firms, including Bronstein, Gewirtz & Grossman, Faruqi & Faruqi, Kaplan Fox, Rosen and others, are seeking investors who purchased PZZA shares between August 7, 2025, and August 5, 2026. The complaints allege Papa John’s failed to disclose that its transformation efforts were not preventing losses in North American market share and that its “cautious consumer” explanation understated business risks. The lead-plaintiff deadline is November 2, 2026. The allegations have not been proven, but the litigation could increase legal costs, reputational damage and investor uncertainty. Bronstein Gewirtz Grossman class-action announcement

Institutional Investors Weigh In On Papa John's International

Several hedge funds and other institutional investors have recently made changes to their positions in PZZA. Public Employees Retirement System of Ohio bought a new stake in shares of Papa John's International in the 2nd quarter worth about $29,000. Persistent Asset Partners Ltd purchased a new position in shares of Papa John's International during the 2nd quarter worth about $33,000. Skylands Capital LLC bought a new position in Papa John's International during the 1st quarter valued at about $65,000. Versant Capital Management Inc grew its holdings in Papa John's International by 656.7% during the 3rd quarter. Versant Capital Management Inc now owns 2,081 shares of the company's stock valued at $41,000 after purchasing an additional 1,806 shares during the last quarter. Finally, PNC Financial Services Group Inc. grew its holdings in Papa John's International by 42.9% during the 1st quarter. PNC Financial Services Group Inc. now owns 2,230 shares of the company's stock valued at $72,000 after purchasing an additional 670 shares during the last quarter.

Papa John's International Trading Down 3.0%

PZZA opened at $18.10 on Friday. The firm has a market cap of $595.85 million, a P/E ratio of 22.91, a P/E/G ratio of 1.99 and a beta of 1.13. Papa John's International has a 12 month low of $17.69 and a 12 month high of $55.74. The stock has a 50-day moving average of $20.98 and a 200 day moving average of $28.93.

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

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.

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