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Market Cap

US$3.1b

Last Updated

2021/05/07 03:31 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Proven track record with adequate 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PZZA's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

3.3%

PZZA

-6.2%

US Hospitality

-1.7%

US Market


1 Year Return

24.8%

PZZA

83.4%

US Hospitality

51.8%

US Market

Return vs Industry: PZZA underperformed the US Hospitality industry which returned 83.4% over the past year.

Return vs Market: PZZA underperformed the US Market which returned 51.8% over the past year.


Shareholder returns

PZZAIndustryMarket
7 Day3.3%-6.2%-1.7%
30 Day10.6%-7.2%1.5%
90 Day-0.9%1.3%3.1%
1 Year26.1%24.8%84.1%83.4%54.4%51.8%
3 Year86.1%78.0%9.1%4.1%63.0%52.8%
5 Year74.2%63.1%67.0%54.3%127.2%101.9%

Long-Term 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?

1.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PZZA ($100.89) is trading below our estimate of fair value ($101.92)

Significantly Below Fair Value: PZZA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PZZA is poor value based on its PE Ratio (51.5x) compared to the US Hospitality industry average (40.1x).

PE vs Market: PZZA is poor value based on its PE Ratio (51.5x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: PZZA is poor value based on its PEG Ratio (3x)


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.


Future Growth

How is Papa John's International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PZZA's forecast earnings growth (16.9% per year) is above the savings rate (2%).

Earnings vs Market: PZZA's earnings (16.9% per year) are forecast to grow faster than the US market (15.4% per year).

High Growth Earnings: PZZA's earnings are forecast to grow, but not significantly.

Revenue vs Market: PZZA's revenue (5.5% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: PZZA's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PZZA's Return on Equity is forecast to be high in 3 years time


Past Performance

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

-37.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PZZA has high quality earnings.

Growing Profit Margin: PZZA's current net profit margins (3.3%) are higher than last year (0.06%).


Past Earnings Growth Analysis

Earnings Trend: PZZA's earnings have declined by 37.1% per year over the past 5 years.

Accelerating Growth: PZZA's earnings growth over the past year (6021%) exceeds its 5-year average (-37.1% per year).

Earnings vs Industry: PZZA earnings growth over the past year (6021%) exceeded the Hospitality industry -31.7%.


Return on Equity

High ROE: Whilst PZZA's Return on Equity (483.79%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: PZZA's short term assets ($331.6M) exceed its short term liabilities ($291.7M).

Long Term Liabilities: PZZA's short term assets ($331.6M) do not cover its long term liabilities ($608.6M).


Debt to Equity History and Analysis

Debt Level: PZZA's debt to equity ratio (1940.3%) is considered high.

Reducing Debt: PZZA's debt to equity ratio has reduced from 10851.6% to 1940.3% over the past 5 years.

Debt Coverage: PZZA's debt is well covered by operating cash flow (62%).

Interest Coverage: PZZA's interest payments on its debt are well covered by EBIT (8.8x coverage).


Balance Sheet


Dividend

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

0.89%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 07 2021Ex Dividend DateMay 10 2021Dividend Pay DateMay 21 202111 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PZZA's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: PZZA's dividend (0.89%) is low compared to the top 25% of dividend payers in the US market (3.42%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.9%), PZZA's dividend payments are 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 (31.3% 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)

1.75yrs

Tenure

US$6,378,193

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD6.38M) is about average for companies of similar size in the US market ($USD5.41M).

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


Leadership Team

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


Board Members

Experienced Board: PZZA's board of directors are not considered experienced ( 2.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 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$3.096b
  • Shares outstanding: 32.94m
  • 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


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 Analysis2021/05/07 03:31
End of Day Share Price2021/05/06 00:00
Earnings2021/03/28
Annual Earnings2020/12/27


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.