Papa John's International (NASDAQ:PZZA) Issues Earnings Results

Key Points

• Papa John’s missed first-quarter expectations: Earnings came in at $0.32 per share versus $0.40 expected, while revenue of $478.6 million also fell short of estimates. Revenue declined 7.7% year over year from the same quarter last year.
• International business was a bright spot: Global international comparable sales rose 3.6%, marking six straight quarters of positive comps. Growth was strongest in the U.K., Middle East, and Asia Pacific.
• Management is leaning on new products and cost actions: The company launched several menu and marketing initiatives, while also cutting underperforming stores and targeting supply-chain savings. Papa John’s reiterated its 2026 outlook, including adjusted EBITDA of $200 million to $210 million.

Papa John's International (NASDAQ:PZZA - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.32 EPS for the quarter, missing analysts' consensus estimates of $0.40 by ($0.08), FiscalAI reports. The business had revenue of $478.61 million for the quarter, compared to the consensus estimate of $485.51 million. Papa John's International had a negative return on equity of 10.71% and a net margin of 1.37%.The firm's revenue for the quarter was down 7.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.36 EPS.

Here are the key takeaways from Papa John's International's conference call:

• International momentum: Global international comparable sales rose 3.6% (six consecutive quarters of positive comps) with the U.K. +11%, Middle East +9% and Asia Pacific +5%, driving improved revenue outside North America.
• North America softness: North America comps declined mid-single digits driven by fewer transactions and lower new-customer acquisition (weather cost ~40 bps), even as pizzas-per-order rose 5% and loyalty additions remained strong.
• Rebuilt innovation and marketing: Management launched Pan Pizza, Oven‑Toasted Sandwiches, Cheesy Garlic Bread, a Toy Story 5 collaboration (including new 8" personal pizzas) and retail garlic sauce to drive trial, add‑ons and broaden the addressable market.
• Margin and portfolio actions: Papa John’s captured $7M of supply‑chain benefits in Q1, expects at least $25M in 2026 and $60M by 2028 (targeting ~160 bps four‑wall EBITDA improvement), closed 44 underperforming stores and is progressing refranchising to move toward an asset‑light model.
• 2026 outlook and liquidity: Company reiterates 2026 guidance of global system sales flat to low‑single‑digit declines, North America comps -2% to -4%, consolidated adjusted EBITDA $200–$210M, with available liquidity around $498M and Q1 free cash flow outflow of $6M.

Papa John's International Price Performance

Shares of NASDAQ:PZZA traded down $1.71 during trading on Friday, reaching $31.14. The stock had a trading volume of 1,490,885 shares, compared to its average volume of 867,067. The stock has a market capitalization of $1.02 billion, a PE ratio of 37.52, a P/E/G ratio of 2.83 and a beta of 1.18. The business's 50-day moving average price is $34.58 and its 200 day moving average price is $38.12. Papa John's International has a 52 week low of $29.55 and a 52 week high of $55.74.

Papa John's International Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Monday, May 18th will be paid a $0.46 dividend. The ex-dividend date is Monday, May 18th. This represents a $1.84 dividend on an annualized basis and a dividend yield of 5.9%. Papa John's International's payout ratio is 206.74%.

Institutional Trading of Papa John's International

A number of hedge funds and other institutional investors have recently modified their holdings of PZZA. Marshall Wace LLP acquired a new stake in shares of Papa John's International in the fourth quarter valued at approximately $12,969,000. Quinn Opportunity Partners LLC acquired a new stake in shares of Papa John's International in the fourth quarter valued at approximately $12,767,000. Earnest Partners LLC increased its holdings in shares of Papa John's International by 19.6% in the fourth quarter. Earnest Partners LLC now owns 1,947,248 shares of the company's stock valued at $74,950,000 after purchasing an additional 318,816 shares in the last quarter. Gumshoe Capital Management LLC acquired a new stake in shares of Papa John's International in the fourth quarter valued at approximately $10,034,000. Finally, Balyasny Asset Management L.P. acquired a new stake in shares of Papa John's International in the fourth quarter valued at approximately $8,729,000.

Key Stories Impacting Papa John's International

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

• Positive Sentiment: Benchmark kept a buy rating on Papa John’s and still sees meaningful upside, although it lowered its price target from $50 to $45. Benchmark price target update
• Positive Sentiment: Stephens reaffirmed an overweight rating with a $40 price target, signaling confidence that the stock can recover from current levels. Stephens rating update
• Neutral Sentiment: Papa John’s launched a limited-time marketing campaign, “Skies to Pies,” turning Spirit Airlines loyalty frustration into a free-pizza promotion. The move may support brand awareness, but its near-term financial impact is unclear. Business Wire promotion
• Neutral Sentiment: The company declared a quarterly dividend of $0.46 per share, which may appeal to income-focused investors, though it is not the main driver of the stock’s move.
• Negative Sentiment: Piper Sandler cut its price target from $32 to $30 and maintained a neutral rating, reflecting limited upside near the current share price. Piper Sandler price target update
• Negative Sentiment: First-quarter results missed estimates, with EPS of $0.32 versus $0.40 expected and revenue of $478.6 million below forecasts, while sales fell 7.7% year over year. Papa John's press release
• Negative Sentiment: Management said inflation-weary customers are trading down to smaller pizzas and skipping sides and desserts, which is pressuring sales and profitability. WSJ article

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on PZZA. Zacks Research upgraded shares of Papa John's International from a "strong sell" rating to a "hold" rating in a research note on Monday, January 26th. Piper Sandler cut their target price on shares of Papa John's International from $32.00 to $30.00 and set a "neutral" rating for the company in a research note on Friday. Stephens reiterated an "overweight" rating and issued a $40.00 target price on shares of Papa John's International in a research note on Friday. Mizuho cut their target price on shares of Papa John's International from $40.00 to $34.00 and set a "neutral" rating for the company in a research note on Friday, February 20th. Finally, Benchmark cut their target price on shares of Papa John's International from $50.00 to $45.00 and set a "buy" rating for the company in a research note on Friday. Three analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Papa John's International presently has an average rating of "Hold" and a consensus price target of $42.78.

Papa John's International Company Profile

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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