Willis Investment Counsel Takes Position in Papa John's International, Inc. $PZZA

Key Points

• Willis Investment Counsel acquired 34,700 shares of Papa John’s (NASDAQ:PZZA) in Q4—about $1.34 million and roughly 0.11% ownership—while other institutions (notably Irenic Capital) also initiated multi‑million‑dollar positions.
• In the latest quarter Papa John's reported EPS of $0.34 (beat by $0.01) but revenue fell 6.1% year‑over‑year to $498.2 million, producing thin profitability (net margin 1.44%) and a negative return on equity (-11.16%).
• The company pays a $0.46 quarterly dividend (annualized yield ~5.2%) but with a high dividend payout ratio of 206.74%; analysts show a consensus Hold rating with a $45 target amid mixed price‑target cuts.

Willis Investment Counsel acquired a new stake in Papa John's International, Inc. (NASDAQ:PZZA - Free Report) during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 34,700 shares of the company's stock, valued at approximately $1,336,000. Willis Investment Counsel owned 0.11% of Papa John's International as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also modified their holdings of the company. Irenic Capital Management LP acquired a new position in shares of Papa John's International in the third quarter valued at about $51,699,000. Cantor Fitzgerald L. P. acquired a new position in shares of Papa John's International in the third quarter valued at about $12,374,000. Kingsview Wealth Management LLC acquired a new position in shares of Papa John's International in the third quarter valued at about $3,105,000. Gradient Investments LLC acquired a new position in shares of Papa John's International in the third quarter valued at about $13,036,000. Finally, SG Americas Securities LLC acquired a new position in shares of Papa John's International in the fourth quarter valued at about $6,416,000.

Papa John's International Stock Up 1.3%

Papa John's International stock opened at $35.37 on Thursday. The firm has a market cap of $1.16 billion, a price-to-earnings ratio of 39.74, a price-to-earnings-growth ratio of 1.67 and a beta of 1.18. Papa John's International, Inc. has a 52 week low of $29.55 and a 52 week high of $55.74. The business's 50-day moving average price is $33.59 and its 200 day moving average price is $39.64.

Papa John's International (NASDAQ:PZZA - Get Free Report) last posted its earnings results on Thursday, February 26th. The company reported $0.34 EPS for the quarter, topping the consensus estimate of $0.33 by $0.01. Papa John's International had a negative return on equity of 11.16% and a net margin of 1.44%.The firm had revenue of $498.18 million for the quarter, compared to analyst estimates of $517.25 million. During the same period last year, the company earned $0.63 earnings per share. Papa John's International's revenue for the quarter was down 6.1% compared to the same quarter last year. Equities analysts expect that Papa John's International, Inc. will post 2.19 EPS for the current year.

Papa John's International Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 20th. Shareholders of record on Monday, February 9th were issued a $0.46 dividend. This represents a $1.84 annualized dividend and a yield of 5.2%. The ex-dividend date of this dividend was Monday, February 9th. Papa John's International's dividend payout ratio (DPR) is presently 206.74%.

Analyst Ratings Changes

A number of brokerages have recently weighed in on PZZA. Stephens cut their price objective on Papa John's International from $49.00 to $40.00 and set an "overweight" rating on the stock in a report on Friday, February 27th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Papa John's International in a report on Friday, March 27th. Zacks Research raised Papa John's International from a "strong sell" rating to a "hold" rating in a report on Monday, January 26th. Benchmark dropped their target price on Papa John's International from $60.00 to $50.00 and set a "buy" rating on the stock in a report on Friday, February 27th. Finally, Mizuho dropped their target price on Papa John's International from $40.00 to $34.00 and set a "neutral" rating on the stock in a report on Friday, February 20th. Three research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Papa John's International has a consensus rating of "Hold" and a consensus target price of $45.00.

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.

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