| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 3/6 |
| Past Performance | 1/6 |
| Financial Health | 1/6 |
| Dividends | 2/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$92.89 |
| 52 Week High | US$140.68 |
| 52 Week Low | US$74.46 |
| Beta | 1.06 |
| 1 Month Change | 8.66% |
| 3 Month Change | 13.75% |
| 1 Year Change | -27.21% |
| 3 Year Change | 117.08% |
| 5 Year Change | 18.27% |
| Change since IPO | 4,677.20% |
Recent News & Updates
Papa John's Q2 2022 Earnings Preview
Papa John's (NASDAQ:PZZA) is scheduled to announce Q2 earnings results on Thursday, August 4th, before market open. The consensus EPS Estimate is $0.75 (-19.4% Y/Y) and the consensus Revenue Estimate is $531.7M (+3.2% Y/Y). Over the last 2 years, PZZA has beaten EPS estimates 75% of the time and has beaten revenue estimates 88% of the time. Over the last 3 months, EPS estimates have seen 0 upward revisions and 13 downward. Revenue estimates have seen 1 upward revision and 12 downward.
Papa John's International (NASDAQ:PZZA) Is Reinvesting At Lower Rates Of Return
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'd want to...
Shareholder Returns
| PZZA | US Hospitality | US Market | |
|---|---|---|---|
| 7D | 1.0% | 5.8% | 3.2% |
| 1Y | -27.2% | -15.1% | -10.1% |
Return vs Industry: PZZA underperformed the US Hospitality industry which returned -17.2% over the past year.
Return vs Market: PZZA underperformed the US Market which returned -11.7% over the past year.
Price Volatility
| PZZA volatility | |
|---|---|
| PZZA Average Weekly Movement | 5.5% |
| Hospitality Industry Average Movement | 8.7% |
| Market Average Movement | 7.7% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1984 | 14,000 | Rob Lynch | https://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
| PZZA fundamental statistics | |
|---|---|
| Market Cap | US$3.28b |
| Earnings (TTM) | US$89.31m |
| Revenue (TTM) | US$2.11b |
36.8x
P/E Ratio1.6x
P/S RatioIs PZZA overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PZZA income statement (TTM) | |
|---|---|
| Revenue | US$2.11b |
| Cost of Revenue | US$1.46b |
| Gross Profit | US$643.99m |
| Other Expenses | US$554.68m |
| Earnings | US$89.31m |
Last Reported Earnings
Jun 26, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.53 |
| Gross Margin | 30.56% |
| Net Profit Margin | 4.24% |
| Debt/Equity Ratio | -230.6% |
How did PZZA perform over the long term?
See historical performance and comparisonDividends
1.8%
Current Dividend Yield56%
Payout RatioDoes PZZA pay a reliable dividends?
See PZZA dividend history and benchmarks| Papa John's International dividend dates | |
|---|---|
| Ex Dividend Date | Aug 12 2022 |
| Dividend Pay Date | Aug 26 2022 |
| Days until Ex dividend | 2 days |
| Days until Dividend pay date | 12 days |
Does PZZA pay a reliable dividends?
See PZZA dividend history and benchmarksValuation
Is PZZA undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for PZZA?
Other financial metrics that can be useful for relative valuation.
| What is PZZA's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$3.28b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.9x |
| Enterprise Value/EBITDA | 19.3x |
| PEG Ratio | 0.7x |
Price to Earnings Ratio vs Peers
How does PZZA's PE Ratio compare to its peers?
| PZZA PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 42.8x | ||
WING Wingstop | 102.6x | 20.1% | US$4.1b |
WEN Wendy's | 25.5x | 10.7% | US$4.6b |
TXRH Texas Roadhouse | 24.8x | 14.1% | US$6.3b |
CBRL Cracker Barrel Old Country Store | 18.2x | 9.7% | US$2.5b |
PZZA Papa John's International | 36.8x | 49.7% | US$3.3b |
Price-To-Earnings vs Peers: PZZA is good value based on its Price-To-Earnings Ratio (36.8x) compared to the peer average (42.8x).
Price to Earnings Ratio vs Industry
How does PZZA's PE Ratio compare vs other companies in the US Hospitality Industry?
Price-To-Earnings vs Industry: PZZA is expensive based on its Price-To-Earnings Ratio (36.8x) compared to the US Hospitality industry average (17.8x)
Price to Earnings Ratio vs Fair Ratio
What is PZZA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 36.8x |
| Fair PE Ratio | 41.4x |
Price-To-Earnings vs Fair Ratio: PZZA is good value based on its Price-To-Earnings Ratio (36.8x) compared to the estimated Fair Price-To-Earnings Ratio (41.4x).
Share Price vs Fair Value
What is the Fair Price of PZZA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: PZZA ($92.89) is trading below our estimate of fair value ($104.77)
Significantly Below Fair Value: PZZA is trading below fair value, but not by a significant amount.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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Future Growth
How is Papa John's International forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score
3/6Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
49.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PZZA's forecast earnings growth (49.7% per year) is above the savings rate (1.9%).
Earnings vs Market: PZZA's earnings (49.7% per year) are forecast to grow faster than the US market (14.4% per year).
High Growth Earnings: PZZA's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PZZA's revenue (4.4% per year) is forecast to grow slower than the US market (7.9% per year).
High Growth Revenue: PZZA's revenue (4.4% 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
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Past Performance
How has Papa John's International performed over the past 5 years?
Past Performance Score
1/6Past Performance Score 1/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-35.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PZZA has a high level of non-cash earnings.
Growing Profit Margin: PZZA became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: PZZA's earnings have declined by 35.7% 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 (52.4%).
Return on Equity
High ROE: PZZA's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
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Financial Health
How is Papa John's International's financial position?
Financial Health Score
1/6Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
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 (19.1%).
Interest Coverage: PZZA's interest payments on its debt are well covered by EBIT (8x coverage).
Balance Sheet
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Dividend
What is Papa John's International current dividend yield, its reliability and sustainability?
Dividend Score
2/6Dividend Score 2/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
1.81%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PZZA's dividend (1.81%) is higher than the bottom 25% of dividend payers in the US market (1.49%).
High Dividend: PZZA's dividend (1.81%) is low compared to the top 25% of dividend payers in the US market (4%).
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 9 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (56.5%), PZZA's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (242.7%), PZZA's dividend payments are not well covered by cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Rob Lynch (45 yo)
3yrs
Tenure
US$7,239,979
Compensation
Mr. Robert M. Lynch, also known as Rob, has been President and Chief Executive Officer of Papa John's International, Inc. since August 26, 2019 and also its Director since 2019. Mr. Lynch joined Papa John...
CEO Compensation Analysis
Compensation vs Market: Rob's total compensation ($USD7.24M) is about average for companies of similar size in the US market ($USD6.64M).
Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: PZZA's management team is considered experienced (3.3 years average tenure).
Board Members
Experienced Board: PZZA's board of directors are considered experienced (3.6 years average tenure).
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 not been meaningfully diluted in the past year.
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$3.283b
- Shares outstanding: 35.35m
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/12 00:00 |
| End of Day Share Price | 2022/08/12 00:00 |
| Earnings | 2022/06/26 |
| Annual Earnings | 2021/12/26 |
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.