PZZA (Post-Call) Well Blow Me Down! April Same-Store Sales Strong 2 the Finish

Earlier today, Papa John’s (PZZA; Buy, $76.16) reported Q1 EPS of $0.15, short of our $0.40 forecast and sell-side consensus (according to Consensus Metrix) of $0.41. However, the difference largely results from an accounting change in which “adjusted (non-GAAP) financial results… no longer present certain financial assistance provided to the North American system in the form of royalty relief and discretionary marketing fund investments as Special charges.” For Q1 2020, the impact to adjusted EPS from this change was -26 cents. In other words, excluding this change, Q1 EPS would have been $0.41 — one cent above our projection and matching consensus.

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