Bank of America Corp DE Purchases New Stake in Papa John's International, Inc. $PZZA

Key Points

• Bank of America acquired 2.26 million Papa John’s shares during the second quarter, valued at approximately $83.2 million and representing about 6.87% of the company. BlackRock and several other institutional investors also established or increased positions.
• Papa John’s reported a modest EPS beat, but quarterly revenue fell 8.8% year over year; the company also suspended its dividend and reduced its comparable-sales outlook. Shares opened at $19.78, near their 52-week low.
• Analysts have broadly turned more cautious, with several cutting price targets and the consensus rating standing at “Reduce” with a $32 target price. The company also faces securities-class-action litigation notices alleging investor harm, though the claims have not been proven.

Bank of America Corp DE acquired a new position in shares of Papa John's International, Inc. (NASDAQ:PZZA - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 2,262,335 shares of the company's stock, valued at approximately $83,186,000. Bank of America Corp DE owned about 6.87% of Papa John's International as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Papa John's International during the second quarter worth about $182,315,000. Bank of New York Mellon Corp purchased a new stake in shares of Papa John's International during the 2nd quarter valued at approximately $13,942,000. Alberta Investment Management Corp acquired a new position in Papa John's International in the second quarter valued at approximately $10,138,000. Heartland Advisors Inc. purchased a new position in Papa John's International in the second quarter worth approximately $8,393,000. Finally, Fiduciary Alliance LLC grew its position in Papa John's International by 2,415.0% in the first quarter. Fiduciary Alliance LLC now owns 135,581 shares of the company's stock worth $4,394,000 after acquiring an additional 130,190 shares during the period.

Key Stories Impacting Papa John's International

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

• Negative Sentiment: Several law firms, including Rosen, Bronstein Gewirtz & Grossman, Kaplan Fox, and Wolf Haldenstein, reminded investors that a November 2, 2026 deadline is approaching to seek lead-plaintiff status in a securities class action covering purchases made from August 7, 2025, through August 5, 2026. The lawsuits allege investors were harmed by company disclosures; the allegations have not been proven. Rosen class action notice
• Negative Sentiment: The investor notices highlight a sharp deterioration in Papa John’s previously communicated turnaround outlook. The company had indicated that 2026 North American comparable sales would decline 2% to 4%, but later reported an 8.3% quarterly decline, suspended its dividend, and reduced its outlook to a potential decline of up to 8%. One notice says the stock lost $5.11 per share in a single session after those developments. PZZA shareholder alert
• Negative Sentiment: The litigation publicity adds reputational, legal-cost, and potential settlement risks at a time when revenue is already declining. Papa John’s most recent quarterly revenue fell 8.8% year over year, despite a modest earnings-per-share beat. Bronstein class action notice

Papa John's International Stock Performance

Shares of PZZA opened at $19.78 on Friday. The company's 50-day simple moving average is $25.97 and its 200-day simple moving average is $31.40. Papa John's International, Inc. has a 1 year low of $19.61 and a 1 year high of $55.74. The stock has a market capitalization of $651.16 million, a PE ratio of 25.04, a P/E/G ratio of 2.16 and a beta of 1.08.

Papa John's International (NASDAQ:PZZA - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.46 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.45 by $0.01. Papa John's International had a net margin of 1.34% and a negative return on equity of 10.98%. The company had revenue of $482.40 million for the quarter, compared to analyst estimates of $481.25 million. During the same period in the prior year, the business earned $0.41 EPS. The firm's quarterly revenue was down 8.8% on a year-over-year basis. On average, sell-side analysts predict that Papa John's International, Inc. will post 1.16 earnings per share for the current year.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. UBS Group dropped their price target on shares of 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. Benchmark lowered shares of Papa John's International from a "buy" rating to a "hold" rating in a report on Friday, August 7th. Piper Sandler cut their target price on Papa John's International from $30.00 to $26.00 and set a "neutral" rating on the stock in a research report on Friday, August 7th. Bank of America restated an "underperform" rating and set a $34.00 price target (down from $42.00) on shares of Papa John's International in a research note on Monday, July 13th. Finally, Stephens restated an "equal weight" rating and set a $24.00 price target (down from $38.00) on shares of Papa John's International in a research report on Friday, August 7th. Six analysts have rated the stock with a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, Papa John's International has an average rating of "Reduce" and a consensus target price of $32.00.

Papa John's International Profile

Papa John's International, Inc NASDAQ: PZZA is a pizza restaurant company that operates and franchises restaurants under the Papa Johns brand. Its menu includes pizzas made with dough prepared from fresh ingredients, along with breadsticks, chicken products, desserts, soft drinks and other side items. Customers can order through the company's digital platforms, for delivery or carryout.

Founded in 1984 by John Schnatter, Papa John's began as a single restaurant in Jeffersonville, Indiana.

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