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Papa John's shares dip on revenue shortfall

EditorRachael Rajan
Published 29/02/2024, 12:52
© Reuters.
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LOUISVILLE, Ky. - Papa John's International, Inc. (NASDAQ: NASDAQ:PZZA) reported its fourth quarter financial results, revealing an earnings beat but a slight miss on revenue expectations.

The pizza chain posted adjusted earnings per share (EPS) of $0.91, surpassing analyst estimates by $0.19. However, the company's revenue for the quarter was $571.32 million, falling short of the consensus estimate of $577.88 million.

The company's stock experienced a marginal decline of 0.36% following the earnings release.

The fourth quarter saw a 9% increase in total revenues compared to the same period last year, amounting to an additional $45 million. This growth was driven by an extra week of operations in 2023, contributing approximately $41 million to the total revenue.

Excluding this additional week, revenues were up around 1%. The company also reported an 11% increase in global system-wide restaurant sales from the prior year's fourth quarter, attributing approximately 2% of this growth to new restaurant openings and higher North America comparable sales.

Papa John's President and CEO, Rob Lynch, commented on the results, highlighting the company's record system-wide sales for the year and marking the fourth consecutive year of positive North America comparable restaurant sales.

"We made significant progress in several key operational areas during the year," Lynch stated. He emphasized improvements in domestic company-owned restaurant-level margins, global footprint expansion, and enhancements in digital solutions and marketing platforms.

The company's outlook remains optimistic as it embarks on its "Back to Better 2.0" growth initiatives, focusing on accelerating North America development. Lynch acknowledged potential near-term challenges due to the dynamic global environment but expressed confidence in the company's business model, strategy, and brand strength.

Papa John's International, Inc., headquartered in Louisville, Kentucky, is the world's third-largest pizza delivery company, with over 5,900 restaurants in 50 countries and territories. The company prides itself on its commitment to using high-quality ingredients and has been a pioneer in the industry for its transparency and menu innovations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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