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 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.

DNKN (Post-Call) Not Spooked by a Favorable Q3 Tax Rate

By Mark Kalinowski Published on October 31, 2019 at 12:00 AM

Earlier today, Dunkin’ Brands Group (DNKN; Neutral) reported adjusted Q3 EPS of $0.90, surpassing our $0.81 forecast and sell-side consensus (according to Consensus Metrix) of $0.81. We attribute about $0.06-$0.07 of the EPS beat to a better-than-expected adjusted tax rate (21.9% actual vs. 27.7% forecasted and 27.8% consensus).