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Papa John's International (NASDAQ:PZZA) Inc. shares opened higher Thursday after the pizza chain reported better-than-expected fourth-quarter earnings and revenue, despite ongoing sales challenges.
The company posted adjusted earnings per share of $0.63, beating analyst estimates of $0.51. Revenue came in at $530.77 million, surpassing the consensus forecast of $516.29 million.
However, comparable sales in North America declined 4.4% YoY in Q4, with company-owned restaurants down 5.7% and franchised locations falling 4%. International comparable sales rose 2.1%.
"I am pleased with the early progress we are seeing in our transformation as we work to improve our value perception, simplify our operations, and enhance our digital and loyalty experiences," said CEO Todd Penegor.
For 2025, Papa John's expects system-wide sales growth of 2-5% and North America comparable sales to range from flat to up 2%. The company also plans to open 85-115 new restaurants in North America and 180-200 internationally.
Papa John's ended 2024 with 6,030 restaurants globally, a net increase of 124 locations for the year.
"PZZA pre-released preliminary results ahead of their presentation at ICR in January consisting of a modest same-store sales miss/beat in the Domestic/International markets, respectively," said Stephens analysts. "Additionally, PZZA reported a global net new unit beat driven by strength in the Domestic market."
Stephens added: "This morning, PZZA debuted FY25 guidance which came in ahead of consensus at the mid-point on Domestic/International same-store sales but was modestly behind on adjusted EBITDA. Regarding development, FY25 gross openings are ahead of consensus net openings."
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