Zacks Research Issues Pessimistic Forecast for PZZA Earnings

Key Points

• Zacks Research cut Papa John’s FY2026 EPS forecast to $1.21 from $1.40 and maintained a “Strong Sell” rating, below the $1.25 analyst consensus.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating and a $32 target price, with several firms recently lowering their targets or ratings.
• Papa John’s shares opened at $23.27, near their 12-month low of $22.88. Its latest quarter modestly beat EPS expectations at $0.46, but revenue fell 8.8% year over year to $482.4 million.

Papa John's International, Inc. (NASDAQ:PZZA - Free Report) - Investment analysts at Zacks Research decreased their FY2026 earnings estimates for shares of Papa John's International in a report issued on Wednesday, August 19th. Zacks Research analyst Team now forecasts that the company will earn $1.21 per share for the year, down from their prior estimate of $1.40. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for Papa John's International's current full-year earnings is $1.25 per share. Zacks Research also issued estimates for Papa John's International's Q4 2026 earnings at $0.29 EPS, Q3 2027 earnings at $0.26 EPS, Q1 2028 earnings at $0.44 EPS, Q2 2028 earnings at $0.27 EPS and FY2028 earnings at $1.54 EPS.

PZZA has been the topic of several other reports. Mizuho dropped their price objective on shares of Papa John's International from $33.00 to $32.00 and set a "neutral" rating on the stock in a research report on Friday, July 31st. 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. Stephens reiterated an "equal weight" rating and issued a $24.00 price target (down from $38.00) on shares of Papa John's International in a research note on Friday, August 7th. Benchmark lowered shares of Papa John's International from a "buy" rating to a "hold" rating in a research note on Friday, August 7th. Finally, Wall Street Zen raised shares of Papa John's International from a "sell" rating to a "hold" rating in a report on Sunday, July 26th. Six research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $32.00.

Papa John's International Stock Down 0.3%

Shares of Papa John's International stock opened at $23.27 on Thursday. Papa John's International has a 12-month low of $22.88 and a 12-month high of $55.74. The stock has a market cap of $766.09 million, a P/E ratio of 29.46, a P/E/G ratio of 2.38 and a beta of 1.13. The business's 50 day moving average is $31.53 and its 200-day moving average is $33.07.

Papa John's International (NASDAQ:PZZA - Get Free Report) last posted its earnings results 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 during the quarter, compared to analysts' expectations of $481.25 million. During the same period in the prior year, the business earned $0.41 EPS. Papa John's International's revenue for the quarter was down 8.8% compared to the same quarter last year.

Hedge Funds Weigh In On Papa John's International

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

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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