Papa John's International
Market Cap
US$3.1b
Last Updated
2020/08/14 00:19 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.
Rewards
Risk Analysis
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
| PZZA | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.5% | 6.1% | 0.5% |
| 30 Day | 4.9% | 5.5% | 4.9% |
| 90 Day | 19.2% | 24.7% | 19.8% |
| 1 Year | 130.9%128.1% | -16.3%-18.0% | 21.2%18.7% |
| 3 Year | 30.3%24.3% | -10.7%-16.7% | 46.2%36.8% |
| 5 Year | 51.7%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
5 months ago | Simply Wall St
Papa John's International, Inc. Just Released Its Annual Results And Analysts Are Updating Their Estimates6 months ago | Simply Wall St
Is Papa John's International, Inc. (NASDAQ:PZZA) A Risky Dividend Stock?8 months ago | Simply Wall St
Did Papa John's International, Inc. (NASDAQ:PZZA) Insiders Sell Shares?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1yr | US$7.30m | 0.28% $ 8.8m | |
| Chief Legal & Risk Officer | 7.75yrs | US$935.09k | 0.097% $ 3.0m | |
| Chief Commercial & Marketing Officer | 0.75yr | US$900.24k | 0.030% $ 951.2k | |
| Chief People and Diversity Officer | 1.58yrs | US$847.30k | 0.017% $ 546.2k | |
| Interim Principal Financial & Accounting Officer and VP of Investor Relations & Strategy Planning | 0.42yr | US$700.71k | 0.046% $ 1.4m | |
| Chief Insights and Technology Officer | 1.83yrs | no data | no data | |
| Senior Vice president of Communications & Corporate Affairs | 0.75yr | no data | no data | |
| Senior Vice President of North American Operations and Global Operations Support & Training | 4.92yrs | no data | no data | |
| Chief Ingredient Officer | 4.5yrs | no data | no data | |
| Chief Operating Officer of International | 2.25yrs | US$1.56m | 0.058% $ 1.8m | |
| Senior Vice President of Customer Experience | 1.83yrs | no data | no data | |
| Senior Vice President of Menu Strategy & Innovation | 1.83yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1yr | US$7.30m | 0.28% $ 8.8m | |
| Independent Director | 17.25yrs | US$275.83k | 0.60% $ 18.7m | |
| Independent Director | 6.17yrs | US$286.83k | 0.042% $ 1.3m | |
| Independent Director | 1.5yrs | US$268.42k | no data | |
| Independent Chairman of the Board | 1.5yrs | US$383.33k | 2.26% $ 70.6m | |
| Independent Director | 7.83yrs | US$282.33k | 0.023% $ 709.5k | |
| Independent Director | 1.42yrs | US$191.92k | no data | |
| Director | 1.42yrs | US$181.95k | no data | |
| Independent Director | 1.42yrs | US$197.92k | no data | |
| Independent Director | 4.92yrs | US$267.33k | 0.0098% $ 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PZZA | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jun 1993 |
| PP1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/14 00:19 |
| End of Day Share Price | 2020/08/13 00:00 |
| Earnings | 2020/06/28 |
| Annual Earnings | 2019/12/29 |
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.