Zacks Research Brokers Lower Earnings Estimates for PZZA

Key Points

• Zacks Research cut Papa John’s Q3 2026 EPS forecast to $0.14 from $0.28 and projects FY2027 EPS of $1.00. Zacks maintains a “Strong Sell” rating.
• Analyst sentiment is broadly negative: UBS and Bank of America lowered price targets, while Benchmark downgraded the stock to “Hold.” MarketBeat reports a consensus “Reduce” rating and $32 price target.
• PZZA shares opened at $23.32, near their 52-week low of $22.77 and well below their 50-day and 200-day moving averages. The company’s latest quarter modestly exceeded EPS and revenue estimates, but revenue fell 8.8% year over year.

Papa John's International, Inc. (NASDAQ:PZZA - Free Report) - Investment analysts at Zacks Research decreased their Q3 2026 earnings per share (EPS) estimates for Papa John's International in a report released on Wednesday, August 19th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $0.14 for the quarter, down from their prior forecast of $0.28. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for Papa John's International's current full-year earnings is $1.22 per share. Zacks Research also issued estimates for Papa John's International's Q1 2027 earnings at $0.28 EPS, Q2 2027 earnings at $0.20 EPS, Q4 2027 earnings at $0.26 EPS and FY2027 earnings at $1.00 EPS.

A number of other equities analysts have also commented on PZZA. UBS Group cut their price objective 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. Bank of America reaffirmed an "underperform" rating and set a $34.00 target price (down from $42.00) on shares of Papa John's International in a report on Monday, July 13th. Wall Street Zen upgraded shares of Papa John's International from a "sell" rating to a "hold" rating in a research note on Sunday, July 26th. Benchmark downgraded shares of Papa John's International from a "buy" rating to a "hold" rating in a report on Friday, August 7th. Finally, Weiss Ratings lowered shares of Papa John's International from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, August 7th. Six research analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus price target of $32.00.

Papa John's International Stock Up 0.2%

Shares of PZZA opened at $23.32 on Friday. The business's 50-day moving average price is $31.35 and its 200-day moving average price is $32.98. Papa John's International has a twelve month low of $22.77 and a twelve month high of $55.74. The stock has a market cap of $767.69 million, a PE ratio of 29.52, a P/E/G ratio of 2.42 and a beta of 1.13.

Papa John's International (NASDAQ:PZZA - Get Free Report) last issued its quarterly earnings data 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 negative return on equity of 10.98% and a net margin of 1.34%.The business had revenue of $482.40 million for the quarter, compared to analysts' expectations of $481.25 million. During the same quarter in the prior year, the firm posted $0.41 EPS. The firm's quarterly revenue was down 8.8% on a year-over-year basis.

Institutional Investors Weigh In On Papa John's International

Hedge funds have recently bought and sold shares of the stock. Private Advisor Group LLC boosted its stake in Papa John's International by 6.5% during the 3rd quarter. Private Advisor Group LLC now owns 5,220 shares of the company's stock valued at $251,000 after purchasing an additional 319 shares during the last quarter. State of Alaska Department of Revenue increased its holdings in shares of Papa John's International by 1.8% in the 4th quarter. State of Alaska Department of Revenue now owns 18,642 shares of the company's stock worth $716,000 after purchasing an additional 328 shares in the last quarter. Alliancebernstein L.P. raised its stake in shares of Papa John's International by 0.8% in the third quarter. Alliancebernstein L.P. now owns 42,662 shares of the company's stock worth $2,054,000 after purchasing an additional 354 shares during the last quarter. Intech Investment Management LLC raised its stake in shares of Papa John's International by 3.6% in the fourth quarter. Intech Investment Management LLC now owns 11,467 shares of the company's stock worth $441,000 after purchasing an additional 397 shares during the last quarter. Finally, Acorn Financial Advisory Services Inc. ADV lifted its holdings in shares of Papa John's International by 2.4% during the fourth quarter. Acorn Financial Advisory Services Inc. ADV now owns 18,569 shares of the company's stock valued at $715,000 after purchasing an additional 436 shares in the last quarter.

Key Stories Impacting Papa John's International

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

• Neutral Sentiment: The estimates were issued by Zacks Research on August 19 and repeated across multiple research notes; they represent one firm’s outlook rather than a new company earnings report.
• Negative Sentiment: Zacks cut its FY2026 EPS forecast to $1.21 from $1.40, close to the broader consensus estimate of $1.22. It also lowered Q4 2026 EPS to $0.29 from $0.39, suggesting weaker near-term earnings momentum.
• Negative Sentiment: Projected FY2027 EPS was reduced sharply to $1.00 from $1.55. Quarterly estimates were also cut to $0.14 for Q3 2026, $0.28 for Q1 2027, $0.20 for Q2 2027 and $0.26 for Q4 2027.
• Negative Sentiment: Zacks lowered its FY2028 EPS forecast to $1.54 from $1.74, including cuts to Q1 2028 EPS of $0.44 from $0.47 and Q2 2028 EPS of $0.27 from $0.38. The broad-based reductions point to concerns extending beyond a single quarter.
• Negative Sentiment: Zacks maintains a “Strong Sell” rating on PZZA. With shares trading well below their 50-day and 200-day moving averages and near the $22.77 52-week low, the lowered profit outlook may encourage additional selling and keep valuation concerns elevated.

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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