Zacks Research Has Bearish Forecast for PZZA Q3 Earnings

Key Points

• Zacks Research cut its Q3 2026 EPS estimate for Papa John’s International to $0.28 from $0.35 and kept a Hold rating on the stock.
• Other analysts have also turned more cautious, including downgrades and lower price targets from Wall Street Zen, UBS Group, Piper Sandler, Weiss Ratings, and Deutsche Bank. The broader consensus remains Hold with an average target price of $38.50.
• Papa John’s recently missed quarterly earnings estimates, reporting $0.32 EPS versus $0.40 expected, while revenue fell 7.7% year over year to $478.61 million. Shares opened at $32.75, below both their 50-day and 200-day moving averages.

Papa John's International, Inc. (NASDAQ:PZZA - Free Report) - Equities researchers at Zacks Research lowered their Q3 2026 earnings estimates for shares of Papa John's International in a report issued on Wednesday, May 20th. Zacks Research analyst Team now forecasts that the company will earn $0.28 per share for the quarter, down from their prior forecast of $0.35. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Papa John's International's current full-year earnings is $1.51 per share. Zacks Research also issued estimates for Papa John's International's FY2026 earnings at $1.40 EPS, Q3 2027 earnings at $0.42 EPS, Q4 2027 earnings at $0.46 EPS, FY2027 earnings at $1.73 EPS and Q1 2028 earnings at $0.48 EPS.

PZZA has been the topic of a number of other research reports. Wall Street Zen downgraded Papa John's International from a "hold" rating to a "sell" rating in a research note on Saturday, May 16th. UBS Group decreased their target price on shares of Papa John's International from $42.00 to $33.00 and set a "neutral" rating for the company in a research note on Monday, March 2nd. Piper Sandler lowered their price target on 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. Weiss Ratings cut Papa John's International from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on Papa John's International from $45.00 to $35.00 and set a "hold" rating for the company in a research note on Friday, February 27th. Two analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $38.50.

Papa John's International Price Performance

Shares of NASDAQ PZZA opened at $32.75 on Friday. The business has a 50-day moving average of $34.82 and a two-hundred day moving average of $36.74. The company has a market capitalization of $1.08 billion, a price-to-earnings ratio of 39.46, a price-to-earnings-growth ratio of 1.80 and a beta of 1.18. Papa John's International has a 1 year low of $29.55 and a 1 year high of $55.74.

Papa John's International (NASDAQ:PZZA - Get Free Report) last posted its quarterly earnings results 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 business had revenue of $478.61 million during the quarter, compared to analyst estimates of $485.51 million. During the same quarter last year, the firm earned $0.36 EPS. The business's revenue was down 7.7% on a year-over-year basis.

Papa John's International Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Monday, May 18th will be paid a dividend of $0.46 per share. The ex-dividend date of this dividend is Monday, May 18th. This represents a $1.84 annualized dividend and a dividend yield of 5.6%. Papa John's International's payout ratio is 221.69%.

Institutional Investors Weigh In On Papa John's International

Institutional investors and hedge funds have recently modified their holdings of the company. Earnest Partners LLC grew its stake in Papa John's International by 19.6% in the 4th quarter. Earnest Partners LLC now owns 1,947,248 shares of the company's stock valued at $74,950,000 after acquiring an additional 318,816 shares during the last quarter. Bank of America Corp DE lifted its holdings in Papa John's International by 10.5% in the 2nd quarter. Bank of America Corp DE now owns 1,700,062 shares of the company's stock valued at $83,201,000 after purchasing an additional 161,906 shares in the last quarter. Deprince Race & Zollo Inc. lifted its holdings in Papa John's International by 2.7% in the 4th quarter. Deprince Race & Zollo Inc. now owns 1,657,994 shares of the company's stock valued at $63,816,000 after purchasing an additional 42,810 shares in the last quarter. Segall Bryant & Hamill LLC boosted its stake in shares of Papa John's International by 27.3% during the 3rd quarter. Segall Bryant & Hamill LLC now owns 1,174,369 shares of the company's stock worth $56,546,000 after purchasing an additional 251,560 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its holdings in shares of Papa John's International by 2.0% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,108,612 shares of the company's stock worth $53,380,000 after buying an additional 21,742 shares in the last quarter.

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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