Fast-food pizza chain Papa John’s (NASDAQ:PZZA) will be reporting earnings this Thursday before the bell. Here’s what to expect.
Papa John's missed analysts’ revenue expectations last quarter, reporting revenues of $498.2 million, down 6.1% year on year. It was a slower quarter for the company, with a significant miss of analysts’ revenue estimates and full-year EBITDA guidance missing analysts’ expectations.
Is Papa John's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Papa John’s revenue to decline 6.3% year on year, a deceleration from its flat revenue in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Papa John's has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Papa John’s peers in the traditional fast food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Starbucks delivered year-on-year revenue growth of 8.8%, beating analysts’ expectations by 4.3%, and Yum! Brands reported revenues up 15.2%, topping estimates by 0.6%. Starbucks traded up 8.4% following the results while Yum! Brands was also up 2%.
Read our full analysis of Starbucks’s results here and Yum! Brands’s results here.
Investors in the traditional fast food segment have had steady hands going into earnings, with share prices flat over the last month. Papa John’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $38.27 (compared to the current share price of $35.01).
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