Fast-food pizza chain Papa John’s (NASDAQ: PZZA) will be announcing earnings results this Thursday morning. Here’s what you need to know.
Papa John's met analysts’ revenue expectations last quarter, reporting revenues of $482.4 million, down 8.8% year on year. It was a softer quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
Is Papa John's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Papa John’s revenue to decline 9.5% year on year, a deceleration from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Papa John's has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Papa John’s peers in the traditional fast food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Yum! Brands delivered year-on-year revenue growth of 3.8%, beating analysts’ expectations by 2.8%, and Starbucks reported a revenue decline of 4.5%, falling short of estimates by 0.9%. Starbucks traded down 1.7% following the results.
Read our full analysis of Yum! Brands’s results here and Starbucks’s results here.
There has been positive sentiment among investors in the traditional fast food segment, with share prices up 13.4% on average over the last month. Papa John's is down 5.1% during the same time and is heading into earnings with an average analyst price target of $28 (compared to the current share price of $18.54).
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