Papa John's International, Inc. (NASDAQ:PZZA) Given Consensus Recommendation of "Reduce" by Analysts

Key Points

• Papa John’s International has an average analyst rating of “Reduce”, with 10 analysts split between 3 sell, 5 hold, and 2 buy ratings. The consensus 12-month price target is $36.50.
• Several firms have turned more cautious on the stock recently, including Zacks Research downgrading PZZA from Hold to Strong Sell. Other analysts also cut price targets, reflecting softer expectations for future performance.
• Recent earnings guidance and results have been weak: the company reported Q1 EPS of $0.32, below estimates, and analysts lowered forecasts for 2027 and 2028 earnings. Papa John’s also pays a 5.5% dividend yield, though its payout ratio is elevated at 221.69%.

Shares of Papa John's International, Inc. (NASDAQ:PZZA - Get Free Report) have been assigned an average rating of "Reduce" from the ten analysts that are presently covering the firm, MarketBeat.com reports. Three investment analysts have rated the stock with a sell rating, five have assigned a hold rating and two have given a buy rating to the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $36.50.

Several equities research analysts recently issued reports on the stock. Mizuho reduced their target price on shares of Papa John's International from $34.00 to $33.00 and set a "neutral" rating for the company in a report on Monday, May 11th. Piper Sandler lowered their price target on shares of Papa John's International from $32.00 to $30.00 and set a "neutral" rating on the stock in a report on Friday, May 8th. Stephens reiterated an "overweight" rating and issued a $40.00 price target on shares of Papa John's International in a research report on Wednesday, July 1st. Bank of America reissued an "underperform" rating and issued a $34.00 price objective (down from $42.00) on shares of Papa John's International in a research note on Monday. Finally, Benchmark decreased their price objective on shares of Papa John's International from $50.00 to $45.00 and set a "buy" rating on the stock in a research report on Friday, May 8th.

Institutional Investors Weigh In On Papa John's International

Institutional investors and hedge funds have recently bought and sold shares of the business. Lazard Asset Management LLC bought a new position in shares of Papa John's International in the second quarter worth about $59,000. Skylands Capital LLC bought a new stake in Papa John's International during the 1st quarter valued at approximately $65,000. Leonteq Securities AG purchased a new position in Papa John's International in the 4th quarter worth approximately $71,000. PNC Financial Services Group Inc. boosted its stake in Papa John's International by 42.9% in the 1st quarter. PNC Financial Services Group Inc. now owns 2,230 shares of the company's stock worth $72,000 after purchasing an additional 670 shares during the period. Finally, Kestra Advisory Services LLC purchased a new stake in Papa John's International during the 4th quarter valued at approximately $73,000.

Key Papa John's International News

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

• Negative Sentiment: Zacks Research downgraded Papa John's International (PZZA) from Hold to Strong Sell, signaling a more cautious view on the stock. Zacks.com
• Negative Sentiment: The firm lowered its Q3 2027 EPS estimate to $0.32 from $0.42, implying softer near-term earnings expectations. Tickerreport.com
• Negative Sentiment: Q4 2027 EPS estimates were cut to $0.39 from $0.46, adding to concerns about slower growth into late 2027. Tickerreport.com
• Negative Sentiment: Q1 2028 EPS was trimmed to $0.47 from $0.48, while Q2 2028 EPS was reduced to $0.38 from $0.49, reinforcing a softer forecast for future profitability. Tickerreport.com
• Negative Sentiment: FY2027 EPS was lowered to $1.55 from $1.73, and FY2028 EPS was cut to $1.74 from $1.90, indicating weaker long-term earnings expectations. Tickerreport.com

Papa John's International Stock Performance

NASDAQ:PZZA opened at $33.70 on Friday. The stock has a 50-day simple moving average of $33.81 and a two-hundred day simple moving average of $34.69. The firm has a market capitalization of $1.11 billion, a PE ratio of 40.60, a P/E/G ratio of 2.10 and a beta of 1.12. Papa John's International has a 52-week low of $29.55 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, May 7th. The company reported $0.32 EPS for the quarter, missing the consensus estimate of $0.40 by ($0.08). Papa John's International had a negative return on equity of 10.71% and a net margin of 1.37%.The company had revenue of $478.61 million during the quarter, compared to the consensus estimate of $485.51 million. During the same period last year, the business earned $0.36 EPS. The firm's quarterly revenue was down 7.7% compared to the same quarter last year. Equities analysts forecast that Papa John's International will post 1.48 earnings per share for the current fiscal year.

Papa John's International Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Monday, May 18th were paid a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a yield of 5.5%. The ex-dividend date was Monday, May 18th. Papa John's International's dividend payout ratio is presently 221.69%.

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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