PZZA (Post-Call) A Q3 EPS Beat… Will Epic Stuffed Crust Pizzas Launch in Q1

By Mark Kalinowski Published on November 5, 2020 at 12:00 AM

Earlier today, Papa John’s announced Q3 EPS of $0.35, ahead of our $0.30 forecast and sell-side consensus of $0.32 (according to Consensus Metrix). Given an all-time high quarterly cheese cost in Q3 (block cheese in general averaged about $2.25 per pound in Q3) and costs that hampered rival Domino’s (DPZ; Buy, $392.52) Q3 EPS — some of these costs COVID-related — PZZA shares could benefit from a “relief factor” as it trades today.

PZZA Possible Implications from Domino’s Lead to Updated Forecasts

By Mark Kalinowski Published on October 8, 2020 at 12:00 AM

Earlier today, Domino’s (DPZ; Buy, $403.46) reported a Q3 EPS miss relative to our expectations (and sell-side consensus). This miss was not caused by same-store sales trends, which came in above expectations for both the U.S. and International segments in Q3. Below the top line, multiple issues came into play, including spending related to the pandemic (such as higher pay for front-line employees, higher sick pay, and the need to buy more cleaning equipment), and what Domino’s described as all-time high cheese costs.

DPZ (Post-Call) Higher Cheese and G&A Costs Matter

By Mark Kalinowski Published on October 8, 2020 at 12:00 AM

Earlier today, Domino’s reported that its Q3 EPS came to $2.49, short of our $2.79 forecast and sell-side consensus (according to Consensus Metrix) of $2.78 (which had been at $2.73 as recently as eight days ago).