PZZA (Post-Call) A Shaq-tastic Q2 and July

By Mark Kalinowski Published on August 6, 2020 at 12:00 AM

Earlier today, Papa John’s (PZZA; Buy, $99.14) reported adjusted Q2 EPS of $0.48, coming in meaningfully above our $0.35 forecast and sell-side consensus of $0.44. We had been concerned that costs related to franchisee assistance — which amounted to a -$0.12 hit in Q2 — would hold back Q2 earnings, but the strength of the business (North American same-store sales up a previously-announced +28.0%) more than made up for this. Built into our Q2E estimate heading into today was an EPS hit of -18 cents related to franchisee assistance, so even specific to Q2, this came in +6 cents better than we expected.

PZZA The Bull and Bear Case on Papa John’s

By Mark Kalinowski Published on July 9, 2020 at 12:00 AM

In this report we examine the bull and bear cases regarding Papa John’s (PZZA; Buy, $88.26). While we maintain our Buy rating on PZZA — it continues to be our top small/mid-cap restaurant-stock pick — it is good for investors interested in PZZA to be aware of the bull and bear cases surrounding the stock, no matter what our rating on the shares is.

PZZA The Latest Test Menu Items from Papa John’s U.S. are Epic

By Mark Kalinowski Published on May 19, 2020 at 12:00 AM

Get ready for more innovation from Papa John’s (PZZA; Buy, $78.11) — we have learned that Papa John’s U.S. is testing several varieties of “Epic Stuffed Crust Pizzas” in at least one test market (Indianapolis). We believe there is a chance that one or more stuffed crust pizzas could receive a nationwide rollout by the end of 2020.