Papa John's International Sees Unusually High Options Volume (NASDAQ:PZZA)

Key Points

• Put-option activity surged: Traders purchased 24,081 Papa John’s put options, about 453% above the typical daily volume, signaling unusually high bearish or hedging interest.
• Earnings expectations deteriorated: Zacks sharply cut its EPS forecasts for 2026–2028, including a roughly 35% reduction in its FY2027 estimate to $1.00, while maintaining a “Strong Sell” rating.
• Analyst sentiment remains weak: Several firms lowered price targets, and the stock carries a consensus “Reduce” rating with a $32 target. Shares closed at $23.46, near their 52-week low, despite the company slightly exceeding quarterly earnings and revenue estimates.

Papa John's International, Inc. (NASDAQ:PZZA - Get Free Report) was the target of unusually large options trading on Friday. Stock traders acquired 24,081 put options on the company. This represents an increase of approximately 453% compared to the typical daily volume of 4,355 put options.

Papa John's International News Roundup

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

• Negative Sentiment: Zacks cut its FY2027 EPS forecast to $1.00 from $1.55, a reduction of roughly 35%. It also lowered estimates for Q3 2026 to $0.14 from $0.28, Q1 2027 to $0.28 from $0.46, Q2 2027 to $0.20 from $0.39 and Q4 2027 to $0.26 from $0.39. These cuts point to deteriorating expectations for near-term earnings growth. Papa John's International analyst estimates
• Negative Sentiment: The firm also reduced its FY2026 EPS forecast to $1.21 from $1.40, Q4 2026 EPS to $0.29 from $0.39 and FY2028 EPS to $1.54 from $1.74. Additional cuts included Q3 2027 EPS to $0.26 from $0.32, Q1 2028 EPS to $0.44 from $0.47 and Q2 2028 EPS to $0.27 from $0.38. The breadth of the revisions may reinforce concerns about sustained operating challenges.
• Negative Sentiment: Zacks Research’s repeated “Strong Sell” rating further weighs on the outlook. Its FY2026 estimate of $1.21 is roughly in line with the broader $1.22 consensus, but its FY2027 forecast of $1.00 signals considerably weaker earnings than investors may currently expect.

Wall Street Analysts Forecast Growth

PZZA has been the topic of a number of research analyst reports. Mizuho cut their price target on shares of Papa John's International from $33.00 to $32.00 and set a "neutral" rating on the stock in a report on Friday, July 31st. Stephens reissued an "equal weight" rating and issued a $24.00 price objective (down from $38.00) on shares of Papa John's International in a research report on Friday, August 7th. Weiss Ratings downgraded shares of Papa John's International from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, August 7th. Bank of America restated an "underperform" rating and issued a $34.00 target price (down from $42.00) on shares of Papa John's International in a research note on Monday, July 13th. Finally, Wall Street Zen raised shares of Papa John's International from a "sell" rating to a "hold" rating in a research report on Sunday, July 26th. Six investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Reduce" and a consensus price target of $32.00.

Papa John's International Trading Up 0.6%

Shares of Papa John's International stock traded up $0.14 during trading on Friday, hitting $23.46. 163,320 shares of the stock traded hands, compared to its average volume of 1,238,575. The stock's fifty day simple moving average is $31.35 and its 200 day simple moving average is $32.98. The firm has a market cap of $772.30 million, a P/E ratio of 29.70, a price-to-earnings-growth ratio of 2.42 and a beta of 1.13. Papa John's International has a 52-week low of $22.77 and a 52-week high of $55.74.

Papa John's International (NASDAQ:PZZA - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.46 earnings per share for the quarter, topping analysts' consensus estimates of $0.45 by $0.01. The company had revenue of $482.40 million during the quarter, compared to analyst estimates of $481.25 million. Papa John's International had a net margin of 1.34% and a negative return on equity of 10.98%. The firm's revenue for the quarter was down 8.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.41 earnings per share. As a group, equities analysts expect that Papa John's International will post 1.22 EPS for the current year.

Hedge Funds Weigh In On Papa John's International

Large investors have recently bought and sold shares of the business. Public Employees Retirement System of Ohio purchased a new position in shares of Papa John's International in the 2nd quarter valued at $29,000. Persistent Asset Partners Ltd purchased a new stake in shares of Papa John's International during the 2nd quarter worth $33,000. Lazard Asset Management LLC bought a new stake in Papa John's International during the second quarter valued at about $59,000. Skylands Capital LLC bought a new stake in Papa John's International during the first quarter valued at about $65,000. Finally, Leonteq Securities AG purchased a new position in Papa John's International in the fourth quarter valued at about $71,000.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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