Tuesday November 6, 2018, 00:00:00

PZZA (Post-Call) About that Executive Retention Program…

By Mark Kalinowski

After today’s market close, Papa John’s (PZZA; Buy) reported adjusted Q3 EPS of $0.20. This was below our $0.25 forecast and the sell-side consensus estimate (according to Consensus Metrix) of $0.22. The company also updated its full-year 2018 EPS target range to $1.30-$1.60 (the previous target had been $1.30-$1.80). With the first three quarters of 2018 reported, and doing the math, the updated fullyear 2018 EPS target range implies a Q4 EPS target range of $0.01-$0.31. With the Q3 EPS miss, and us believing it prudent at this time to not be at the high end of this implied Q4 EPS target range, we lower our Q4 EPS estimate by $0.11, to $0.20 (from $0.31). This brings down our full-year 2018E EPS estimate by $0.16, to $1.49. Given this lower base of anticipated earnings coming off of this year, we also take down our 2019E EPS estimate by $0.05, to $1.45 (keeping in mind that earnings year-overyear in both Q1 2019 and Q2 2019 are likely to be down).

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Monday November 5, 2018, 00:00:00

PZZA Here’s the Restaurant Company that Papa John’s Should Emulate

By Mark Kalinowski

Although our Buy rating on Papa John’s (PZZA) is mostly predicated on the possibility that the company is acquired by a possible suitor — for example, on October 30th, Reuters reported that “Bain Capital and CVC Capital Partners are among the private equity firms competing to acquire Papa John’s” — there are multiple other paths to meaningful upside for the stock. We write this brief report to suggest one other path to meaningful upside, if an acquisition of PZZA fails to materialize. (We still believe the odds of an acquisition over the next 12 months or so are greater than 50/50.)

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Thursday January 1, 1970, 00:00:00

PZZA Why Trian Nelson Peltz May Have an Interest in Acquiring Papa John’s

By Mark Kalinowski

Read the Full Report

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