PZZA Earnings Prediction
The chart below shows how PZZA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PZZA sees a +2.40% change in stock price 10 days leading up to the earnings, and a -1.43% change 10 days following the report. On the earnings day itself, the stock moves by -1.34%. This data can give you a slight idea of what to expect for the next quarter's release.
PZZA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
506.81M
-3.06%
-0.21%
Gross Margin
26.50%
-2.18%
-5.79%
Operating Margin
5.78%
-10.11%
-23.44%
Net Margin
8.25%
170.49%
234.01%
EPS
1.27
164.58%
243.24%
No Data Available
PZZA Earnings Analysis
Papa John's International Inc Corporation (PZZA.O) Earnings Conference Call
Positive
Quarterly Revenue Decline: Total revenues for the third quarter were $507 million, down 3% from last year, primarily reflecting an approximately $10 million decrease in international revenues.
Operating Income Decline: Adjusted operating income for the third quarter of 2024 was $29 million, down $4 million from a year ago, the year-over-year change in adjusted operating income was a result of anticipated lower operating margins at our domestic company-owned restaurants as we strategically reinvested some of our first-half savings into improving our value perception with customers.
Restaurant Margin Decline: Our domestic company-owned restaurant segment margins declined approximately 360 basis points, compared with the prior year third quarter.
Net New Restaurant Openings: We have opened 49 new restaurants through the first nine months of the year, while closing 28 resulting in a total of 21 net new North America restaurants.
Restaurant Expansion Plans: We continue to expect to open more than 100 new restaurants, while also anticipating closures of underperforming restaurants to remain well within our historical norms.
Negative
Quarterly Revenue Decline: Total revenues for the third quarter were $507 million, down 3% from last year, primarily reflecting an approximately $10 million decrease in international revenues, reflecting the closure of 43 underperforming U.K. company-owned restaurants in the second quarter of this year and the refranchising of 60 company-owned restaurants in the U.K. market through the first nine months of 2024, an approximately $8.5 million decrease in domestic company-owned restaurant revenues, reflecting lower transaction volumes and to a lesser extent, an approximately $5 million decrease related to preferred marketing of formerly wholly-owned print and promotions company which was sold in the fourth quarter of 2023.
North America Sales Decline: North America comparable sales were down approximately 6% from a year ago.
Operating Income Decline: Adjusted operating income for the third quarter of 2024 was $29 million, down $4 million from a year ago, the year-over-year change in adjusted operating income was a result of anticipated lower operating margins at our domestic company-owned restaurants as we strategically reinvested some of our first-half savings into improving our value perception with customers.
Restaurant Segment Margin Decline: Overall, our domestic company-owned restaurant segment margins declined approximately 360 basis points, compared with the prior year third quarter.
Margin Decline Factors: The lower margins were primarily driven by an approximately 190 basis point decline from higher food basket costs, particularly around cheese and chicken, which were anticipated, and an approximately 40 basis point decline from lower average ticket.
PZZA FAQs
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PZZA Earning Call Sentiment
Papa John's International, Inc. (PZZA) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
PZZA.O
-1.53%Positive
The earnings call indicates several negative factors: a decline in North America comparable sales by 6%, a 3% drop in total revenues, and a decrease in adjusted operating income and free cash flow. The Q&A section reveals concerns about value perception and competitive pressures. Although there is some optimism in transaction improvement and strategic initiatives, the overall sentiment is negative due to weak financial performance and management's unclear responses to critical questions. Given the market cap, the stock is likely to see a negative movement in the range of -2% to -8%.
