h1 Papa Johns International Inc Reports Q2 2024 Financial Resultsh1p strong Papa Johns Internationa
Intellectia.AI Updated: 1970-01-01
Papa John’s International, Inc. Reports Q2 2024 Financial Results
Papa John’s International, Inc. released its earnings report for the second quarter ended June 30, 2024. Below is a detailed breakdown of the company's financial performance and other key metrics.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | YoY Change | QoQ Change | Consensus Estimates |
|---|---|---|---|---|---|---|
| Total Revenue | $507.9M | $515.1M | $514.5M | -1.3% | -1.4% | $520.52M |
| Earnings Per Share | $0.37 | $0.45 | $0.54 | -31.5% | -17.8% | $0.53 |
The reported total revenue of $507.9 million missed the consensus estimate of $520.52 million, reflecting a year-over-year decline of 1.3%. Earnings per share (EPS) also fell short of expectations, coming in at $0.37 compared to the $0.53 estimate, indicating a substantial decline of 31.5% year-over-year.
Interpretation:
Papa John’s financial performance in Q2 2024 fell short of analyst expectations amid a challenging macroeconomic environment. The decrease in total revenue and EPS highlights ongoing pressures, potentially due to inflationary costs and fluctuating commodity prices.
Revenue Performance by Segment
| Segment | Q2 2024 Revenue | Q1 2024 Revenue | Q2 2023 Revenue | YoY Change |
|---|---|---|---|---|
| Domestic Company-Owned Restaurants | $173.2M | $175.7M | $176.2M | -1.7% |
| North America Franchising | $32.0M | $32.1M | $32.3M | -0.9% |
| North America Commissaries | $200.7M | $206.9M | $209.5M | -4.2% |
| International | $39.7M | $40.7M | $34.6M | 14.7% |
| Other | $62.3M | $66.5M | $63.1M | -1.3% |
Interpretation:
The revenue decrease was primarily driven by North America Commissaries, which saw a 4.2% decline year-over-year. International revenue, however, demonstrated strong growth, increasing by 14.7%, partially offsetting the declines in other segments.
Dividends and Share Repurchase Program
- The company declared a third-quarter dividend of $0.46 per share to be paid on August 30, 2024.
- No share repurchases were made during the six months ended June 30, 2024.
Forward Guidance
The company provided no specific forward guidance in the earnings release for Q3 or the full fiscal year 2024.
Stock Price Movement
Following the earnings release, the stock price rose by 1.047% as investors reacted to the disclosed financial performance and strategic initiatives, despite the company missing on revenue and earnings estimates.
Summary
In Q2 2024, Papa John’s faced financial challenges marked by a slight decrease in total revenue and a significant drop in EPS year-over-year. Growth in the International segment was a positive highlight, helping to partially offset declines elsewhere. The company continues its commitment to returning value to shareholders, maintaining its dividend payout, and has no share repurchases in the recent quarter. With no specific forward guidance provided, investor sentiment remained positive, reflected in a slight stock price increase post-earnings release.
Note
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