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PZZA

Papa John's International NasdaqGS:PZZA Stock Report

Last Price

US$90.73

Market Cap

US$3.2b

7D

-4.3%

1Y

-24.5%

Updated

09 Aug, 2022

Data

Company Financials +
PZZA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance1/6
Financial Health1/6
Dividends2/6

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

Summary of all time highs, changes and price drops for Papa John's International
Historical stock prices
Current Share PriceUS$90.73
52 Week HighUS$140.68
52 Week LowUS$74.46
Beta1.06
1 Month Change4.65%
3 Month Change10.90%
1 Year Change-24.49%
3 Year Change100.73%
5 Year Change16.17%
Change since IPO4,566.11%

Recent News & Updates

Aug 03

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.

Jul 25
Papa John's International (NASDAQ:PZZA) Is Reinvesting At Lower Rates Of Return

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

PZZAUS HospitalityUS Market
7D-4.3%3.9%1.1%
1Y-24.5%-19.0%-13.0%

Return vs Industry: PZZA underperformed the US Hospitality industry which returned -19% over the past year.

Return vs Market: PZZA underperformed the US Market which returned -13% over the past year.

Price Volatility

Is PZZA's price volatile compared to industry and market?
PZZA volatility
PZZA Average Weekly Movement5.7%
Hospitality Industry Average Movement8.8%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

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

FoundedEmployeesCEOWebsite
198414,000Rob 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$3.21b
Earnings (TTM)US$89.31m
Revenue (TTM)US$2.11b

35.9x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PZZA income statement (TTM)
RevenueUS$2.11b
Cost of RevenueUS$1.46b
Gross ProfitUS$643.99m
Other ExpensesUS$554.68m
EarningsUS$89.31m

Last Reported Earnings

Jun 26, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.53
Gross Margin30.56%
Net Profit Margin4.24%
Debt/Equity Ratio-230.6%

How did PZZA perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

56%

Payout Ratio

Does PZZA pay a reliable dividends?

See PZZA dividend history and benchmarks
When do you need to buy PZZA by to receive an upcoming dividend?
Papa John's International dividend dates
Ex Dividend DateAug 12 2022
Dividend Pay DateAug 26 2022
Days until Ex dividend2 days
Days until Dividend pay date16 days

Does PZZA pay a reliable dividends?

See PZZA dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is PZZA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation 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.

PZZA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.9x
Enterprise Value/EBITDA19x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does PZZA's PE Ratio compare to its peers?

PZZA PE Ratio vs Peers
The above table shows the PE ratio for PZZA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average40.2x
WING Wingstop
97.5x20.1%US$3.9b
WEN Wendy's
23x11.4%US$4.5b
TXRH Texas Roadhouse
23.5x14.1%US$6.0b
CBRL Cracker Barrel Old Country Store
16.8x9.7%US$2.3b
PZZA Papa John's International
35.9x51.9%US$3.2b

Price-To-Earnings vs Peers: PZZA is good value based on its Price-To-Earnings Ratio (35.9x) compared to the peer average (40.2x).


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 (35.9x) compared to the US Hospitality industry average (18.8x)


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.

PZZA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.9x
Fair PE Ratio42.5x

Price-To-Earnings vs Fair Ratio: PZZA is good value based on its Price-To-Earnings Ratio (35.9x) compared to the estimated Fair Price-To-Earnings Ratio (42.5x).


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 ($90.73) is trading below our estimate of fair value ($105.19)

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

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


51.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PZZA's forecast earnings growth (51.9% per year) is above the savings rate (1.9%).

Earnings vs Market: PZZA's earnings (51.9% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: PZZA's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PZZA's revenue (4.5% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: PZZA's revenue (4.5% 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


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Past Performance

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

Past Performance Score

1/6

Past 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 (52.6%).


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

1/6

Financial 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

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.85%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 10 2022Ex Dividend DateAug 12 2022Dividend Pay DateAug 26 202214 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PZZA's dividend (1.85%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: PZZA's dividend (1.85%) is low compared to the top 25% of dividend payers in the US market (4.08%).


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.


Discover strong dividend paying companies

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 ($USD7.24M) is about average for companies of similar size in the US market ($USD6.59M).

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$3.207b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/09 00:00
End of Day Share Price2022/08/09 00:00
Earnings2022/06/26
Annual Earnings2021/12/26


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.