NasdaqGS:PZZA

Stock Analysis Report

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

Fundamentals

Unattractive dividend payer with weak fundamentals.


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


Market Performance


7 Day Return

7.3%

PZZA

0.5%

US Hospitality

0.07%

US Market


1 Year Return

9.6%

PZZA

8.5%

US Hospitality

8.9%

US Market

Return vs Industry: PZZA exceeded the US Hospitality industry which returned 8.5% over the past year.

Return vs Market: PZZA exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

PZZAIndustryMarket
7 Day7.3%0.5%0.07%
30 Day9.5%-2.6%-0.3%
90 Day26.7%-5.9%-1.6%
1 Year11.7%9.6%11.2%8.5%11.3%8.9%
3 Year-24.5%-27.9%43.6%34.1%46.3%36.8%
5 Year37.5%28.5%39.5%24.2%62.1%44.3%

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?


Share Price vs. Fair Value

Below Fair Value: PZZA ($56.98) is trading above our estimate of fair value ($26.87)

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


Price To Earnings Ratio

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


Next Steps

Future Growth

How is Papa John's International forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

102.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PZZA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PZZA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PZZA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PZZA's revenue (4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: PZZA's revenue (4% 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


Next Steps

Past Performance

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

-15.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PZZA is unprofitable, and losses have increased over the past 5 years at a rate of -15% 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 (-14.8%).


Return on Equity

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


Return on Assets

ROA vs Industry: PZZA is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PZZA is currently unprofitable, so its Return on Capital Employed is negative.


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 not well covered by operating cash flow (8.3%).

Interest Coverage: PZZA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: PZZA has a high level of physical assets or inventory.

Debt Coverage by Assets: PZZA has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

1.58%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PZZA's dividend (1.58%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: PZZA's dividend (1.58%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 6 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 covered by earnings (51.7% payout ratio).


Next Steps

Management

What is the CEO of Papa John's International's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Rob Lynch 0

0.2yrs

Tenure

0

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 ...


Management Age and Tenure

1.0yrs

Average Tenure

53yo

Average Age

Experienced Management: PZZA's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

0.7yrs

Average Tenure

47yo

Average Age

Experienced Board: PZZA's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: PZZA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$27,22324 Sep 19
The California State Teachers Employees' Retirement System
EntityCompany
Shares523
Max PriceUS$52.05
BuyUS$46,22624 Sep 19
The California State Teachers Employees' Retirement System
EntityCompany
Shares935
Max PriceUS$49.44
SellUS$20,568,35926 Aug 19
John Schnatter
EntityIndividual
Shares475,861
Max PriceUS$44.06
SellUS$6,464,25023 Aug 19
John Schnatter
EntityIndividual
Shares150,000
Max PriceUS$43.10
SellUS$4,279,60022 Aug 19
John Schnatter
EntityIndividual
Shares100,000
Max PriceUS$42.80
SellUS$157,470,71823 May 19
John Schnatter
EntityIndividual
Shares3,451,413
Max PriceUS$45.63
SellUS$157,470,71823 May 19
John Schnatter
EntityIndividual
Shares3,451,413
Max PriceUS$45.63
BuyUS$141,96920 May 19
Anthony Sanfilippo
EntityIndividual
Shares3,000
Max PriceUS$47.79
SellUS$3,922,65520 May 19
John Schnatter
EntityIndividual
Shares78,428
Max PriceUS$50.02
SellUS$10,146,69716 May 19
John Schnatter
EntityIndividual
Shares200,083
Max PriceUS$51.65
SellUS$6,010,21614 May 19
John Schnatter
EntityIndividual
Shares114,061
Max PriceUS$52.69
BuyUS$14,06306 Feb 19
The California State Teachers Employees' Retirement System
EntityCompany
Shares344
Max PriceUS$40.88
SellUS$37,88020 Nov 18
The California State Teachers Employees' Retirement System
EntityCompany
Shares698
Max PriceUS$56.40
BuyUS$64,43920 Nov 18
The California State Teachers Employees' Retirement System
EntityCompany
Shares1,162
Max PriceUS$56.40

Ownership Breakdown


Management Team

  • Karlin Linhardt (57yo)

    Global Chief Marketing Officer

    • Tenure: 0.6yrs
  • Mike Nettles (52yo)

    Executive VP and Chief Operating & Growth Officer

    • Tenure: 1yrs
    • Compensation: US$2.42m
  • Rob Lynch

    President

    • Tenure: 0.2yrs
  • Steve Ritchie (44yo)

    Consultant

    • Tenure: 0.08yrs
    • Compensation: US$5.65m
  • Caroline Oyler (53yo)

    Senior VP and Chief Legal & Risk Officer

    • Tenure: 6.9yrs
    • Compensation: US$1.75m
  • Steve Coke (40yo)

    Vice President of Investor Relations & Strategy Planning

    • Tenure: 0yrs
    • Compensation: US$700.71k
  • Joe Smith (55yo)

    Senior VP & CFO

    • Tenure: 1.5yrs
    • Compensation: US$1.72m
  • Jack Swaysland (54yo)

    Senior VP & Chief Operating Officer of International

    • Tenure: 1.4yrs
    • Compensation: US$1.56m
  • Justin Falciola

    Senior VP and Chief Analytics & Technology Officer

    • Tenure: 1yrs
  • Madeline Chadwick

    Vice President of Communications

    • Tenure: 0yrs

Board Members

  • Olivia Kirtley (68yo)

    Independent Director

    • Tenure: 16.4yrs
    • Compensation: US$415.37k
  • Laurette Koellner (64yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$294.01k
  • Anthony Sanfilippo (61yo)

    Independent Director

    • Tenure: 0.7yrs
  • Jeff Smith (47yo)

    Independent Chairman of the Board

    • Tenure: 0.7yrs
  • Christopher Coleman (50yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$285.17k
  • Rob Lynch

    President

    • Tenure: 0.2yrs
  • Michael Dubin (40yo)

    Independent Director

    • Tenure: 0.6yrs
  • Shaq O'Neal (47yo)

    Director

    • Tenure: 0.6yrs
  • Jocelyn Mangan (47yo)

    Independent Director

    • Tenure: 0.6yrs
  • Sonya Medina (43yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$266.01k

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$1.811b
  • Shares outstanding: 31.79m
  • Website: https://www.papajohns.com

Number of Employees


Location

  • Papa John's International, Inc.
  • 2002 Papa John’s Boulevard
  • Louisville
  • Kentucky
  • 40299
  • 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 Analysis2019/10/22 23:39
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/30


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.