Ticker delayed 20 minutes
|Avg Daily Volume: 812,315 Market Cap: 1.39B |
Sector: Consumer Services Short Interest: 49.3
THIS QTR: EPS: .29/share REV: 394.4/M
LAST QTR: EPS: .24/share ACTUAL: .31/share (BEAT)
NEXT QTR: EPS: .20/share REV: 383/M
FULL YR: EPS: 1.14/share REV: 1,580/M
*These are the base metrics we will be watching against the actual release numbers
BEAT/MISS RECORD: 48% OF THE TIME THEY BEAT ESTIMATES
PRIOR ‘JUMP ZONE’ MOVES (LAST 3 QTRS %) 6.32, 8.37, 6.7
POTENTIAL JUMP MOVE: 9-9%
Links To Latest News and Headlines
Funding will support families and communities across Canada LOUISVILLE, Ky., Oct. 23, 2020 (GLOBE NEWSWIRE) — Papa John’s Canada announced the company raised more than $40 thousand through sales of the Shaq-a-Roni pizza for Boys & Girls Clubs of Canada to help address challenges posed by COVID-19 for kids and families, and to drive leadership development programs for kids in local communities.“Thanks to the generosity of each customer who ordered a Shaq-a-Roni pizza and the support of our franchisees and team members, we raised more than $40 thousand to support a cause very close to my heart,” said Shaquille O’Neal, Papa John’s Board Member and franchise owner.One dollar from every Shaq-a-Roni sold between June 29 and August 23 was donated to Boys & Girls Clubs of Canada.“The money raised through the Shaq-a-Roni is going to incredible organizations that support causes like COVID-19 relief and the fight against racial injustice,” said Shaquille O’Neal. “As a Boys & Girls Clubs alum, I know the impact Papa John’s continued support is having on these kids and their families’ lives.”“Papa John’s has been fortunate during the pandemic, as we have been able to deliver food to people who want or need to stay at home. It’s our privilege to both feed our communities and give back during these challenging times,” said Rob Lynch, president and CEO of Papa John’s. “Last year we launched The Papa John’s Foundation for Building Community, aligned with our company values of People First, Do the Right Thing and Everyone Belongs. Especially in these times of need, we’re proud to continue our work towards equality, fairness, respect and opportunity for all through our ongoing partnerships like Boys & Girls Clubs.”“It has been incredible to see the enthusiasm of Shaq, the Papa John’s Canada corporate team, and local franchisees as they bring this partnership north of the border,” said Owen Charters, President & CEO, Boys & Girls Clubs of Canada. “Our counterparts at Boys & Girls Clubs of America have been working with Shaq and Papa John’s for quite a while, so working with us was a natural fit—and more important than ever during the COVID-19 pandemic. We are grateful for their generous donations and advocacy for our Clubs, and we look forward to building this partnership here in Canada.”The Shaq-a-Roni, offered for a limited time, is an extra-large pizza made with Papa John’s fresh, never-frozen six ingredient dough, topped with extra cheese and extra pepperoni, then cut into Papa John’s largest slice size to-date. More information about the Shaq-a-Roni pizza, including the Papa John’s Foundation and its grantees, can be found at www.papajohns.com/foundation.About Papa John’s Papa John’s International, Inc. (NASDAQ: PZZA) opened its doors in 1984 with one goal in mind: BETTER INGREDIENTS. BETTER PIZZA.® Papa John’s believes that using high quality ingredients leads to superior-quality pizzas. Its original dough is made of only six ingredients and is fresh, never frozen. Papa John’s tops its pizzas with real cheese made from mozzarella, pizza sauce made with vine-ripened tomatoes that go from vine to can in the same day, and meat free of fillers. It was the first national pizza delivery chain to announce the removal of artificial flavors and synthetic colors from its entire food menu. Papa John’s is headquartered in Louisville, Ky. and is the world’s third largest pizza delivery company with more than 5,300 restaurants in 49 countries and territories as of April 30, 2020. For more information about the Company or to order pizza online, visit www.PapaJohns.com or download the Papa John’s mobile app for iOS or Android.About Boys & Girls Clubs of Canada Community-based services. Positive relationships. Life-changing programs. As Canada’s largest child- and youth-serving charitable organization, Boys and Girls Clubs provide vital programs and services to over 200,000 young people in 775 communities across Canada. During critical out-of-school hours, our Clubs help young people discover who they are, what they can do, and how they can get there. Our trained staff and volunteers give them the tools to realize positive outcomes in self-expression, academics, healthy living, physical activity, mental health, leadership, and more. Since 1900, Boys and Girls Clubs have opened their doors to children, youth, and families in small and large cities, and rural and Indigenous communities. If a young person needs it, our Clubs provide it. Learn more at bgccan.com and follow us on social media @BGCCAN. Media Alyson Hodson President and CEO zag email@example.com
Sales from restaurant and foodservice chains have been improving since the reopening of the economy following the easing of pandemic-induced lockdown restrictions. However, sales are still below the pre-pandemic levels as customers continue to fear dining out due to COVID-19. As per the National Restaurant Association, eating and drinking place sales in September were nearly $10 billion or 15% below the pre-COVID-19 sales observed in January and February.Foodservice chains that quickly adapted to the evolving needs of consumers for digital orders and delivery were able to fare better amid the pandemic.Against this backdrop, we will use the TipRanks Stock Comparison tool to place Papa John’s and Domino’s alongside each other to see which stock offers a more compelling investment opportunity.Papa John’s International (PZZA)Papa John’s International has recovered well from the negative sentiment triggered by its founder and former CEO John Schnatter, thanks to the strategic efforts of CEO Rob Lynch, who joined Papa John’s last year. A strong delivery business helped the pizza chain generate robust sales growth amid the global lockdown.Pandemic-induced demand drove a 15.3% rise in the company’s 2Q revenue to $460.6 million with North American restaurants generating comparable sales (or comps) growth of 28% and international restaurants delivering comps growth of 5.3%. Strong top-line growth and operating leverage on robust North America sales boosted the 2Q adjusted EPS by 200% Y/Y to $0.48.The company added over 3 million new customers through its digital channels in 2Q. In the 2Q conference call, the company stated that about 70% of its orders were placed on digital channels, with mobile ordering its fastest-growing platform.Menu innovation continues to be a key priority for Papa John’s. Grilled Buffalo Chicken Papadia and Shaq-A-Roni pizza (launched in collaboration with NBA star Shaquille O’Neal, Papa John’s Board member and franchise owner) are some notable launches in recent times. In the 2Q conference call, the company stated that the Shaq-a-Roni got a huge start, with over 2 million pieces sold since its launch in late June.Meanwhile, the company sees a substantial potential to expand its footprint domestically and internationally. As of the end of 2Q, Papa John’s operated 5,347 restaurants, including 598 company-owned and 4,749 franchised, in 48 countries. The company’s network is smaller than rivals Domino’s and Pizza Hut.Recently, Papa John’s provided preliminary sales numbers for 3Q. Notably, comparable sales of North America and International restaurants increased 23.8% and 20.6%, respectively. The slowdown in North America comps reflects the impact of the reopening of dine-in locations of several restaurants and food chains.On Oct. 2, Loop Capital analyst Lynne Collier initiated coverage of Papa John’s with a Buy rating and a $110 price target. The analyst feels that the company’s unit growth is “poised to accelerate”, noting that Papa John’s is likely to be in the early stages of a multi-year growth story.She added that with customer and franchisee sentiment improving since early 2019, when the company’s management completed its turnaround, Papa John’s should now be able to translate those strides into a “lasting advantage” that should persist beyond the pandemic. (See PZZA stock analysis on TipRanks)The Street echoes Papa John’s bullish stance with a Strong Buy consensus that breaks down into 9 Buys versus 3 Holds and no Sells. Shares have risen 22.8% so far in 2020 and the average analyst price target of $105.82 implies further upside potential of 36.4% over the coming months.Domino’s Pizza (DPZ)Domino’s is the largest pizza chain in the world based on sales with over 17,200 locations and more than 90 markets. It has delivered same-store sales growth for 38 consecutive quarters in the US and 107 consecutive quarters in the international business, reflecting the resilience of its business model.The temporary shutdown of stores due to COVID-19 impacted Domino’s business, especially in key international markets. However, strong demand for delivery and takeout, especially in the US, has immensely benefited the company’s top-line in recent quarters.Even prior to the pandemic, Domino’s had a very well established delivery network and digital presence in place. Unlike many of its rivals, Domino’s has its own strong delivery network and does not depend on third-party delivery companies.Over the years, the company has made Pizza ordering very convenient for its customers by continuously adding various platforms to its AnyWare technology, including Google Home, Alexa, Slack, Facebook Messenger, Apple Watch, Twitter and Samsung smart TV.In 2019, the company generated over 65% of its US sales from digital channels, including online ordering, mobile apps and several innovative ordering platforms, which reflects its aggressive approach toward digital growth.Earlier this month, Domino’s reported mixed 3Q results as revenue came ahead of expectations but earnings lagged analysts’ forecast. The company’s 3Q EPS rose 21.5% Y/Y to $2.49 on higher revenue partially offset by increased COVID-related labor and supplies costs and higher food costs.Meanwhile, 3Q revenue grew 17.9% Y/Y to about $147 million as the pandemic continued to drive demand for pizza delivery. Amid the pandemic, the company’s digital penetration increased to 75% of US sales in 3Q. Same-store sales rose 17.5% in the US market and 6.2% internationally.The pizza chain continues to expand its presence and opened 236 net new stores in the first nine months of this year, including 83 in 3Q. Most of these stores were opened in the international markets, reflecting the company’s continued focus on growing its sales beyond the US. However, given the impact of the pandemic, it is currently reassessing its goal to open at least 25,000 stores by 2025. (See DPZ stock analysis on TipRanks)Meanwhile DPZ continues to drive more traffic by adding new products to its menu. Recent innovations include new chicken wings with improved sauces, Cheeseburger pizza and Chicken Taco pizzaFollowing the results, Baird analyst David Tarantino reiterated a Buy rating for Domino’s with a price target of $450. The analyst stated that the factors suppressing profitability in the quarter do not appear structural and he is encouraged by the robust comps momentum that the company is delivering in both the US and international markets.The Street’s cautiously optimistic Moderate Buy consensus for Domino’s is based on 11 Buys, 6 Holds and no Sells. Shares have risen 33.3% year-to-date and the average analyst price target of $441.86 indicates that an upside of about 13% lies ahead.Bottom lineCurrently, the Street is more bullish on Papa John’s compared to Domino’s as indicated by the consensus and higher upside potential in the stock. Moreover, Papa John’s is trading at a lower valuation multiple and its dividend yield of 1.16% is higher than Domino’s yield of 0.78%. With this in mind, Papa John’s appears to be a better pick than Domino’s right now.To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment More recent articles from Smarter Analyst: * Kimberly Clark Sinks 7% On 3Q Earnings Miss * BJ’s Restaurants Shares Drop Despite 3Q Revenue Beat * Gilead’s Covid-19 Remdesivir Drug Scores FDA Approval; Shares Surge * Intel Sinks 9% As 3Q Data-Center Sales Disappoint
Papa John’s International, Inc. (NASDAQ: PZZA) will release its third quarter 2020 financial results before the market opens on Thursday, November 5, 2020, with a conference call to follow discussing these results at 8:00 a.m. ET. Investors may access the live webcast at ir.papajohns.com or may dial 877-312-8816 (U.S. and Canada) or 253-237-1189 (International). The conference ID is 9888185. A replay of the call will be available at the Company’s website.
The Chipotle burrito is powering the restaurant chains profits during the pandemic.
Papa John’s International, Inc’s (NASDAQ: PZZA) founder and former CEO Papa John Schnatter is bearish on the company he founded and thinks it is overvalued at 56 times earnings.What Happened: Schnatter has given the reasons for his bearish view in a Seeking Alpha article, which was in response to another bearish article.Schnatter writes that Papa John’s had a revenue problem since 2018 and is showing few signs to pull itself out of the doldrums.He cites a lack of execution and subpar product quality in the last two years as some of the reasons for his view.He wrote that the company was struggling to correct its sales slide in the first quarter of 2020, with three-year cumulative comps declining 7.2%.Schnatter calls the recent surge in sales a result of nationwide lockdowns and restrictions that gave a boost to pizza delivery, which gives a false performance about the company in the short term.Schnatter wrote that the recent gains would “likely fall just as the virus likely will.”As other dining options open, the expectations of a “45% increase in 2021 earnings seems like a stretch.”Schnatter wrote that the stock’s earnings PE of 56 is unjustified, and the stock trading at 35 times analyst-projected 2021 earnings seems delusional.In a manner, the founder of Papa John’s is downgrading the stock, calling it overvalued.Many analysts on Wall Street are bullish on the company, with the most recent price target being $110 by Loop Capital.Price Action: PZZA shares are up 22.5% year-to-date and closed at $77.37 on Tuesday.See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * How Are European Markets Doing Today? * Bloomberg Denies Report Of Minority Stake Sale Talks With Bill Ackman’s SPAC(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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