Zacks Research Has Pessimistic View of PZZA Q3 Earnings

Key Points

• Zacks Research cut its Q3 2027 EPS estimate for Papa John’s to $0.32 from $0.42 and kept a Strong Sell rating on the stock, signaling a bearish view on near-term earnings.
• Other analysts are also cautious: Bank of America reiterated an Underperform rating and lowered its price target to $34, while the consensus rating across analysts remains a “Reduce” with an average target of $36.50.
• Papa John’s recently reported weaker-than-expected results, missing EPS and revenue estimates in its last quarter as revenue fell 7.7% year over year, adding to concerns about profitability and sales growth.

Papa John's International, Inc. (NASDAQ:PZZA - Free Report) - Zacks Research lowered their Q3 2027 earnings per share estimates for shares of Papa John's International in a research report issued on Tuesday, July 14th. Zacks Research analyst Team now forecasts that the company will earn $0.32 per share for the quarter, down from their prior estimate of $0.42. 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 $1.48 per share. Zacks Research also issued estimates for Papa John's International's Q4 2027 earnings at $0.39 EPS, FY2027 earnings at $1.55 EPS, Q1 2028 earnings at $0.47 EPS, Q2 2028 earnings at $0.38 EPS and FY2028 earnings at $1.74 EPS.

Other equities analysts have also issued research reports about the company. Stephens reissued an "overweight" rating and issued a $40.00 price objective on shares of Papa John's International in a research note on Wednesday, July 1st. Bank of America reissued an "underperform" rating and issued a $34.00 price target (down from $42.00) on shares of Papa John's International in a report on Monday. Mizuho lowered their target price on Papa John's International from $34.00 to $33.00 and set a "neutral" rating for the company in a research note on Monday, May 11th. Weiss Ratings cut Papa John's International from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, May 18th. Finally, Wall Street Zen upgraded shares of Papa John's International from a "sell" rating to a "hold" rating in a report on Saturday, June 6th. Two equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, Papa John's International has an average rating of "Reduce" and a consensus price target of $36.50.

Papa John's International Trading Down 0.2%

NASDAQ PZZA opened at $33.20 on Wednesday. Papa John's International has a 1-year low of $29.55 and a 1-year high of $55.74. The company has a 50 day moving average of $33.83 and a 200-day moving average of $34.78. The firm has a market cap of $1.09 billion, a price-to-earnings ratio of 40.00, a PEG ratio of 1.89 and a beta of 1.12.

Papa John's International (NASDAQ:PZZA - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.32 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.40 by ($0.08). The company had revenue of $478.61 million for the quarter, compared to the consensus estimate of $485.51 million. Papa John's International had a net margin of 1.37% and a negative return on equity of 10.71%. The firm's revenue was down 7.7% compared to the same quarter last year. During the same period in the previous year, the business posted $0.36 earnings per share.

Institutional Investors Weigh In On Papa John's International

A number of institutional investors and hedge funds have recently modified their holdings of PZZA. Royal Bank of Canada boosted its position in Papa John's International by 32.8% during the first quarter. Royal Bank of Canada now owns 19,028 shares of the company's stock worth $781,000 after purchasing an additional 4,705 shares during the period. AQR Capital Management LLC bought a new position in shares of Papa John's International during the first quarter worth approximately $600,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Papa John's International by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 19,785 shares of the company's stock worth $813,000 after acquiring an additional 879 shares during the period. Goldman Sachs Group Inc. grew its holdings in shares of Papa John's International by 25.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 310,653 shares of the company's stock worth $12,762,000 after purchasing an additional 62,103 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Papa John's International by 81.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 112,592 shares of the company's stock worth $4,625,000 after purchasing an additional 50,536 shares during the period.

Papa John's International Dividend Announcement

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

Papa John's International News Summary

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

• Positive Sentiment: There were no clearly positive company-specific developments in the latest batch of news.
• Neutral Sentiment: Analysts at Zacks Research updated multiple future earnings estimates for Papa John’s, including slightly lower near-term and longer-term projections, but the revisions were mixed in size and mostly reflect caution rather than a new business announcement.
• Neutral Sentiment: Zacks Research maintained a Strong Sell view on the stock and trimmed FY2027 and FY2028 EPS estimates, adding to the negative sentiment already surrounding the shares. Article Title
• Negative Sentiment: Bank of America recently downgraded Papa John’s to Underperform and cut its price target to $34 from $42, citing the CFO’s departure, persistent competition, and a dimmer outlook for same-store sales growth. Article Title
• Negative Sentiment: Another Zacks Research note lowered Q2 2028 EPS to $0.38 from $0.49, Q1 2028 EPS to $0.47 from $0.48, Q4 2027 EPS to $0.39 from $0.46, Q3 2027 EPS to $0.32 from $0.42, and FY2028 EPS to $1.74 from $1.90, signaling reduced confidence in future profitability. Article Title

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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