Thursday May 27, 2021, 12:22:00
PZZA: Sometimes Dough Rises, Sometimes EPS Estimates Do Too
Based on Papa John’s recent announcement that it will repurchase/convert all the convertible preferred stock owned by a strategic investor, we raise our full-year 2021E EPS estimate by +15 cents, to $3.00. And, based on this higher anticipated base of earnings coming off of this year — as well as net EPS benefits from the repurchase/conversion in Q1 2022 and the first half of Q2 2022, that did not accrue in Q1 2021 and the first half of Q2 2021 — we take up our full-year 2022E EPS forecast by +15 cents, to $3.40.
