NasdaqGS:PZZA

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Executive Summary

Papa John's International, Inc. operates and franchises pizza delivery and carryout restaurants under the Papa John's trademark in the United States and internationally.


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Papa John's International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PZZA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

PZZA

6.1%

US Hospitality

0.5%

US Market


1 Year Return

128.1%

PZZA

-18.0%

US Hospitality

18.7%

US Market

Return vs Industry: PZZA exceeded the US Hospitality industry which returned -17.6% over the past year.

Return vs Market: PZZA exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

PZZAIndustryMarket
7 Day-0.5%6.1%0.5%
30 Day4.9%5.5%4.9%
90 Day19.2%24.7%19.8%
1 Year130.9%128.1%-16.3%-18.0%21.2%18.7%
3 Year30.3%24.3%-10.7%-16.7%46.2%36.8%
5 Year51.7%41.4%9.9%-1.8%85.3%65.1%

Price Volatility Vs. Market

How volatile is Papa John's International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Papa John's International undervalued compared to its fair value and its price relative to the market?

254.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PZZA ($97.61) is trading above our estimate of fair value ($80.22)

Significantly Below Fair Value: PZZA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PZZA is poor value based on its PE Ratio (255x) compared to the US Hospitality industry average (31.4x).

PE vs Market: PZZA is poor value based on its PE Ratio (255x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: PZZA is poor value based on its PEG Ratio (5.6x)


Price to Book Ratio

PB vs Industry: PZZA has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.


Next Steps

Future Growth

How is Papa John's International forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

45.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PZZA's forecast earnings growth (45.6% per year) is above the savings rate (2.2%).

Earnings vs Market: PZZA's earnings (45.6% per year) are forecast to grow faster than the US market (24.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PZZA's revenue (4.9% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: PZZA's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PZZA's Return on Equity is forecast to be high in 3 years time (28.4%)


Next Steps

Past Performance

How has Papa John's International performed over the past 5 years?

-37.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PZZA has a large one-off loss of $25.7M impacting its June 28 2020 financial results.

Growing Profit Margin: PZZA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PZZA's earnings have declined by 37.3% per year over the past 5 years.

Accelerating Growth: PZZA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PZZA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (-48.3%).


Return on Equity

High ROE: PZZA's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Papa John's International's financial position?


Financial Position Analysis

Short Term Liabilities: PZZA has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PZZA has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PZZA has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PZZA's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: PZZA's debt is well covered by operating cash flow (33.7%).

Interest Coverage: PZZA's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Papa John's International current dividend yield, its reliability and sustainability?

0.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PZZA's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: PZZA's dividend (0.92%) is low compared to the top 25% of dividend payers in the US market (4.29%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PZZA has been paying a dividend for less than 10 years.

Growing Dividend: PZZA's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (235.1%), PZZA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PZZA's dividends in 3 years are forecast to be well covered by earnings (34.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Rob Lynch (43 yo)

1

Tenure

US$7,301,499

Compensation

Mr. Robert M. Lynch, also known as Rob, serves as President and Chief Executive Officer of Papa John's International, Inc. since August 27, 2019 and also serves as its Director since 2019. Mr. Lynch had be ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD7.30M) is about average for companies of similar size in the US market ($USD5.74M).

Compensation vs Earnings: Insufficient data to compare Rob's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Lynch
President1yrUS$7.30m0.28%
$ 8.8m
Caroline Oyler
Chief Legal & Risk Officer7.75yrsUS$935.09k0.097%
$ 3.0m
Christopher Wetzel
Chief Commercial & Marketing Officer0.75yrUS$900.24k0.030%
$ 951.2k
Marvin Boakye
Chief People and Diversity Officer1.58yrsUS$847.30k0.017%
$ 546.2k
Steven Coke
Interim Principal Financial & Accounting Officer and VP of Investor Relations & Strategy Planning0.42yrUS$700.71k0.046%
$ 1.4m
Justin Falciola
Chief Insights and Technology Officer1.83yrsno datano data
Madeline Chadwick
Senior Vice president of Communications & Corporate Affairs0.75yrno datano data
Edmond Heelan
Senior Vice President of North American Operations and Global Operations Support & Training4.92yrsno datano data
Sean Muldoon
Chief Ingredient Officer4.5yrsno datano data
Jack Swaysland
Chief Operating Officer of International2.25yrsUS$1.56m0.058%
$ 1.8m
Anne Fischer
Senior Vice President of Customer Experience1.83yrsno datano data
Paul Fabre
Senior Vice President of Menu Strategy & Innovation1.83yrsno datano data

1.8yrs

Average Tenure

44.5yo

Average Age

Experienced Management: PZZA's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robert Lynch
President1yrUS$7.30m0.28%
$ 8.8m
Olivia Kirtley
Independent Director17.25yrsUS$275.83k0.60%
$ 18.7m
Laurette Koellner
Independent Director6.17yrsUS$286.83k0.042%
$ 1.3m
Anthony Sanfilippo
Independent Director1.5yrsUS$268.42kno data
Jeffrey Smith
Independent Chairman of the Board1.5yrsUS$383.33k2.26%
$ 70.6m
Christopher Coleman
Independent Director7.83yrsUS$282.33k0.023%
$ 709.5k
Michael Dubin
Independent Director1.42yrsUS$191.92kno data
Shaquille O'Neal
Director1.42yrsUS$181.95kno data
Jocelyn Mangan
Independent Director1.42yrsUS$197.92kno data
Sonya Medina
Independent Director4.92yrsUS$267.33k0.0098%
$ 305.4k

1.5yrs

Average Tenure

48yo

Average Age

Experienced Board: PZZA's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.


Top Shareholders

Company Information

Papa John's International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Papa John's International, Inc.
  • Ticker: PZZA
  • Exchange: NasdaqGS
  • Founded: 1984
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$3.123b
  • Shares outstanding: 32.81m
  • Website: https://www.papajohns.com

Number of Employees


Location

  • Papa John's International, Inc.
  • 2002 Papa John’s Boulevard
  • Louisville
  • Kentucky
  • 40299-2367
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PZZANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1993
PP1DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1993

Biography

Papa John's International, Inc. operates and franchises pizza delivery and carryout restaurants under the Papa John's trademark in the United States and internationally. It operates through four segments: ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 00:19
End of Day Share Price2020/08/13 00:00
Earnings2020/06/28
Annual Earnings2019/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.