In This Article:
Fast-food pizza chain Papa John’s (NASDAQ:PZZA) will be announcing earnings results tomorrow before the bell. Here’s what you need to know.
Papa John's beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $530.8 million, down 7.1% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
Is Papa John's a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Papa John’s revenue to be flat year on year at $515.1 million, improving from the 2.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 per share.
Analysts covering the company have generally 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 six 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. El Pollo Loco delivered year-on-year revenue growth of 2.6%, beating analysts’ expectations by 0.6%, and Portillo's reported revenues up 6.4%, falling short of estimates by 2.4%. El Pollo Loco traded down 3.8% following the results.
Read our full analysis of El Pollo Loco’s results here and Portillo’s results here.
There has been positive sentiment among investors in the traditional fast food segment, with share prices up 11.3% on average over the last month. Papa John's is up 7.3% during the same time and is heading into earnings with an average analyst price target of $49.73 (compared to the current share price of $34.50).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.