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PZZA

Papa John's InternationalNasdaqGS:PZZA Stock Report

Last Price

US$114.38

Market Cap

US$4.2b

7D

-3.2%

1Y

15.7%

Updated

21 Jan, 2022

Data

Company Financials +
PZZA fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends1/6

PZZA Stock Overview

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.

Papa John's International Competitors

Chipotle Mexican Grill

NYSE:CMG

US$38.8b

Restaurant Brands International

NYSE:QSR

US$25.6b

Yum China Holdings

NYSE:YUMC

US$19.6b

Domino's Pizza

NYSE:DPZ

US$15.8b

Price History & Performance

Summary of all time highs, changes and price drops for Papa John's International
Historical stock prices
Current Share PriceUS$114.38
52 Week HighUS$140.68
52 Week LowUS$78.41
Beta0.96
1 Month Change-12.77%
3 Month Change-5.69%
1 Year Change15.75%
3 Year Change171.17%
5 Year Change35.68%
Change since IPO5,782.40%

Recent News & Updates

Jan 22

Papa John's: Digging Into The Valuation After The Drop

Papa John's released its Q3 results in November, reporting strong same-restaurant sales growth, despite lapping difficult year-over-year comps. Notably, the company continues to rapidly grow its unit count and recently announced a major new long-term development agreement in China. Given the inflationary pressures we're seeing industry-wide, Papa John's looks better positioned than peers and was one of the few names to report margin expansion vs. 2019 levels. However, at 31x FY2022 earnings estimates, I still don't see enough of a margin of safety here above $116.00.

Jan 05
Investors Could Be Concerned With Papa John's International's (NASDAQ:PZZA) Returns On Capital

Investors Could Be Concerned With Papa John's International's (NASDAQ:PZZA) Returns On Capital

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Dec 15
Is Papa John's International, Inc. (NASDAQ:PZZA) Potentially Undervalued?

Is Papa John's International, Inc. (NASDAQ:PZZA) Potentially Undervalued?

While Papa John's International, Inc. ( NASDAQ:PZZA ) might not be the most widely known stock at the moment, it...

Nov 08

Papa John's: Growth At An Unreasonable Price

Papa John's released its Q3 results last week, reporting 8% growth in revenue year-over-year, lapping tough comps of 17% growth in the year-ago period. The solid quarter was driven by impressive comp sales growth of 6.9% domestically, combined with steady unit growth, with 169 net new restaurants opened year-to-date. However, while Papa John's continues to be a solid growth story in the restaurant sector, the stock continues to look expensive relative to historical levels. So, with the stock trading at more than 36x FY2022 earnings estimates, I don't see any way to justify paying up for the stock here, and I continue to see much better value elsewhere in the market.

Shareholder Returns

PZZAUS HospitalityUS Market
7D-3.2%-5.6%-6.1%
1Y15.7%-7.2%4.2%

Return vs Industry: PZZA exceeded the US Hospitality industry which returned -6.1% over the past year.

Return vs Market: PZZA exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is PZZA's price volatile compared to industry and market?
PZZA volatility
PZZA Average Weekly Movement6.0%
Hospitality Industry Average Movement8.0%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
198416,700Rob Lynchhttps://www.papajohns.com

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: Domestic Company-Owned Restaurants, North America Commissaries, North America Franchising, and International Operations. The company also operates dine-in and delivery restaurants under the Papa John’s trademark internationally.

Papa John's International Fundamentals Summary

How do Papa John's International's earnings and revenue compare to its market cap?
PZZA fundamental statistics
Market CapUS$4.16b
Earnings (TTM)-US$11.10m
Revenue (TTM)US$2.01b

2.1x

P/S Ratio

-374.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PZZA income statement (TTM)
RevenueUS$2.01b
Cost of RevenueUS$1.38b
Gross ProfitUS$632.39m
ExpensesUS$643.49m
Earnings-US$11.10m

Last Reported Earnings

Sep 26, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.31
Gross Margin31.47%
Net Profit Margin-0.55%
Debt/Equity Ratio-320.4%

How did PZZA perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

-315%

Payout Ratio

Valuation

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

5.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PZZA ($114.38) is trading below our estimate of fair value ($120.47)

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 unprofitable, so we can't compare its PE Ratio to the US Hospitality industry average.

PE vs Market: PZZA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PZZA's PEG Ratio to determine if it is good value.


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 15 analysts?

118.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PZZA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: PZZA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PZZA's is expected to become profitable in the next 3 years.

Revenue vs Market: PZZA's revenue (6.2% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: PZZA's revenue (6.2% 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?

-47.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PZZA is currently unprofitable.

Growing Profit Margin: PZZA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PZZA is unprofitable, and losses have increased over the past 5 years at a rate of 47.1% per year.

Accelerating Growth: Unable to compare PZZA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PZZA is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (79.7%).


Return on Equity

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


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 (51%).

Interest Coverage: PZZA's interest payments on its debt are well covered by EBIT (11.1x coverage).


Balance Sheet


Dividend

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

1.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PZZA's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: PZZA's dividend (1.22%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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: PZZA is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: PZZA's dividends in 3 years are forecast to be well covered by earnings (37.7% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Rob Lynch (44 yo)

2.42yrs

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 ($USD6.38M) is about average for companies of similar size in the US market ($USD5.23M).

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


Leadership Team

Experienced Management: PZZA's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: PZZA's board of directors are considered experienced (3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PZZA insiders have only sold shares 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 10.4%.


Top Shareholders

Company Information

Papa John's International, Inc.'s 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
  • Implied Market Cap: US$4.159b
  • Shares outstanding: 36.36m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:37
End of Day Share Price2022/01/21 00:00
Earnings2021/09/26
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.