Papa John’s International (NASDAQ:PZZA) Releases Earnings Results, Misses Expectations By $0.08 EPS

Papa John’s International (NASDAQ:PZZA) issued its quarterly earnings results on Thursday. The company reported $0.32 earnings per share for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.08), FiscalAI reports. The company had revenue of $478.61 million during the quarter, compared to analyst estimates 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 business’s revenue for the quarter was down 7.7% on a year-over-year basis. During the same period in the prior year, the business earned $0.36 EPS.

Here are the key takeaways from Papa John’s International’s conference call:

• International momentum: Global international comparable sales rose 3.6% (six consecutive quarters of positive comps) with the U.K. +11%, Middle East +9% and Asia Pacific +5%, driving improved revenue outside North America.
• North America softness: North America comps declined mid-single digits driven by fewer transactions and lower new-customer acquisition (weather cost ~40 bps), even as pizzas-per-order rose 5% and loyalty additions remained strong.
• Rebuilt innovation and marketing: Management launched Pan Pizza, Oven‑Toasted Sandwiches, Cheesy Garlic Bread, a Toy Story 5 collaboration (including new 8″ personal pizzas) and retail garlic sauce to drive trial, add‑ons and broaden the addressable market.
• Margin and portfolio actions: Papa John’s captured $7M of supply‑chain benefits in Q1, expects at least $25M in 2026 and $60M by 2028 (targeting ~160 bps four‑wall EBITDA improvement), closed 44 underperforming stores and is progressing refranchising to move toward an asset‑light model.
• 2026 outlook and liquidity: Company reiterates 2026 guidance of global system sales flat to low‑single‑digit declines, North America comps -2% to -4%, consolidated adjusted EBITDA $200–$210M, with available liquidity around $498M and Q1 free cash flow outflow of $6M.

Papa John’s International Stock Performance

PZZA traded down $1.71 during trading on Friday, reaching $31.14. 1,490,885 shares of the company’s stock were exchanged, compared to its average volume of 867,067. The company’s fifty day moving average price is $34.58 and its 200-day moving average price is $38.12. Papa John’s International has a fifty-two week low of $29.55 and a fifty-two week high of $55.74. The firm has a market capitalization of $1.02 billion, a PE ratio of 37.52, a P/E/G ratio of 2.83 and a beta of 1.18.

Papa John’s International Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Monday, May 18th will be issued a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a yield of 5.9%. The ex-dividend date of this dividend is Monday, May 18th. Papa John’s International’s payout ratio is currently 206.74%.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Zacks Research raised shares of Papa John’s International from a “strong sell” rating to a “hold” rating in a report on Monday, January 26th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Papa John’s International in a report on Friday, March 27th. Mizuho lowered their target price on shares of Papa John’s International from $40.00 to $34.00 and set a “neutral” rating for the company in a report on Friday, February 20th. Piper Sandler lowered their target price on shares of Papa John’s International from $32.00 to $30.00 and set a “neutral” rating for the company in a report on Friday. Finally, Stephens reaffirmed an “overweight” rating and set a $40.00 target price on shares of Papa John’s International in a report on Friday. Three research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $42.78.

Hedge Funds Weigh In On Papa John’s International

Several institutional investors and hedge funds have recently made changes to their positions in PZZA. Marshall Wace LLP acquired a new position in shares of Papa John’s International in the 4th quarter valued at $12,969,000. Quinn Opportunity Partners LLC acquired a new position in shares of Papa John’s International in the 4th quarter valued at $12,767,000. Earnest Partners LLC grew its holdings in shares of 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 buying an additional 318,816 shares during the period. Gumshoe Capital Management LLC acquired a new position in shares of Papa John’s International in the 4th quarter valued at $10,034,000. Finally, Balyasny Asset Management L.P. acquired a new position in shares of Papa John’s International in the 4th quarter valued at $8,729,000.

Papa John’s International News Summary

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

• Positive Sentiment: Benchmark kept a buy rating on Papa John’s and still sees meaningful upside, although it lowered its price target from $50 to $45. Benchmark price target update
• Positive Sentiment: Stephens reaffirmed an overweight rating with a $40 price target, signaling confidence that the stock can recover from current levels. Stephens rating update
• Neutral Sentiment: Papa John’s launched a limited-time marketing campaign, “Skies to Pies,” turning Spirit Airlines loyalty frustration into a free-pizza promotion. The move may support brand awareness, but its near-term financial impact is unclear. Business Wire promotion
• Neutral Sentiment: The company declared a quarterly dividend of $0.46 per share, which may appeal to income-focused investors, though it is not the main driver of the stock’s move.
• Negative Sentiment: Piper Sandler cut its price target from $32 to $30 and maintained a neutral rating, reflecting limited upside near the current share price. Piper Sandler price target update
• Negative Sentiment: First-quarter results missed estimates, with EPS of $0.32 versus $0.40 expected and revenue of $478.6 million below forecasts, while sales fell 7.7% year over year. Papa John’s press release
• Negative Sentiment: Management said inflation-weary customers are trading down to smaller pizzas and skipping sides and desserts, which is pressuring sales and profitability. WSJ article

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.