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Papa John's (PZZA) Gears Up for Q1 Earnings: What's in Store?
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Papa John's International, Inc. (PZZA - Free Report) is scheduled to report first-quarter 2024 results on May 9 before the opening bell. In the last reported quarter, its earnings beat the Zacks Consensus Estimate by 24.7%.
Q1 Estimates
The Zacks Consensus Estimate for earnings is pegged at 58 cents per share, suggesting a decline of 14.7% from the prior-year quarter. Over the past 30 days, the consensus estimate for earnings has witnessed downward revisions of 1.7%. The consensus mark for revenues is pegged at $543.9 million, suggesting growth of 3.2% from the year-ago levels.
Factors to Note
Quarterly revenues are likely to have been boosted by expansion endeavors, initiatives to enhance sales and focus on digitalization. PZZA has been investing significantly in technology-driven strategies, particularly in digital ordering, aiming to stimulate sales.
Over the past few years, Papa John's has notably expanded its online presence and digital marketing efforts, aligning with the increasing use of online and mobile technologies. These endeavors are expected to have contributed positively to its revenue growth. The company’s loyalty program continues to witness a rise in digital transactions. Features like early access to new products, better targeting of offers and promotions, and higher frequency and tickets are likely to have boded well.
We expect domestic company-owned restaurant sales and international revenues to increase 2.4% and 26.3% from the year-ago levels, respectively. We project North America commissary revenues and North America franchise royalties & fees to rise 1.7% and 1.6% from the year-earlier actuals, respectively. On the other hand, dismal comparable sales are likely to have negatively impacted the top line in the quarter under discussion.
High cost is likely to have hurt PZZA’s bottom line. Higher performance-based compensation expenses, depreciation and amortization expenses, as the company continued to invest in its restaurants and technology support, are likely to have driven costs in the quarter to be reported.
For 2024, PZZA expects G&A expenses to be between $70 million and $75 million, resulting from increased tech investments over the last three years.
Shares of the company have lost 24% year to date compared with the industry’s decline of 1.5%. The decline can be primarily attributed to high costs and dismal comps performance.
Papa John's International, Inc. Price and EPS Surprise
Our proven model doesn’t conclusively predict an earnings beat for Papa John's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Papa John's has an Earnings ESP of +5.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Papa John's carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some stocks worth considering from the Zacks Retail-Wholesale space, as our model shows that these have the right combination of elements to beat on earnings this season.
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +1.63% and carries a Zacks Rank #3. The Zacks Consensus Estimate for EPS is pegged at $1.34, which suggests an increase of 22.9% from the prior-year actuals. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly revenues is pegged at $4.82 billion, which indicates a rise of 7.3% from the year-earlier levels. ROST has a trailing four-quarter earnings surprise of 9.1%, on average.
Ollie's Bargain (OLLI - Free Report) currently has an Earnings ESP of +3.08% and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly EPS of 65 cents implies an increase of 32.7% from the year-ago reported number.
The Zacks Consensus Estimate for quarterly revenues is pegged at $503.8 million, implying a jump of 9.7% from the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 7.3%, on average.
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.88% and a Zacks Rank #3. The Zacks Consensus Estimate for DG’s quarterly revenues is pegged at $9.86 billion, which implies a rise of 5.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for DG’s quarterly earnings has been unchanged at $1.57 in the past 30 days, which calls for a 32.9% decline from the year-ago quarter’s reported number. Dollar General has a trailing four-quarter negative earnings surprise of 1.3%, on average.
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Papa John's (PZZA) Gears Up for Q1 Earnings: What's in Store?
Papa John's International, Inc. (PZZA - Free Report) is scheduled to report first-quarter 2024 results on May 9 before the opening bell. In the last reported quarter, its earnings beat the Zacks Consensus Estimate by 24.7%.
Q1 Estimates
The Zacks Consensus Estimate for earnings is pegged at 58 cents per share, suggesting a decline of 14.7% from the prior-year quarter. Over the past 30 days, the consensus estimate for earnings has witnessed downward revisions of 1.7%. The consensus mark for revenues is pegged at $543.9 million, suggesting growth of 3.2% from the year-ago levels.
Factors to Note
Quarterly revenues are likely to have been boosted by expansion endeavors, initiatives to enhance sales and focus on digitalization. PZZA has been investing significantly in technology-driven strategies, particularly in digital ordering, aiming to stimulate sales.
Over the past few years, Papa John's has notably expanded its online presence and digital marketing efforts, aligning with the increasing use of online and mobile technologies. These endeavors are expected to have contributed positively to its revenue growth. The company’s loyalty program continues to witness a rise in digital transactions. Features like early access to new products, better targeting of offers and promotions, and higher frequency and tickets are likely to have boded well.
We expect domestic company-owned restaurant sales and international revenues to increase 2.4% and 26.3% from the year-ago levels, respectively. We project North America commissary revenues and North America franchise royalties & fees to rise 1.7% and 1.6% from the year-earlier actuals, respectively. On the other hand, dismal comparable sales are likely to have negatively impacted the top line in the quarter under discussion.
High cost is likely to have hurt PZZA’s bottom line. Higher performance-based compensation expenses, depreciation and amortization expenses, as the company continued to invest in its restaurants and technology support, are likely to have driven costs in the quarter to be reported.
For 2024, PZZA expects G&A expenses to be between $70 million and $75 million, resulting from increased tech investments over the last three years.
Shares of the company have lost 24% year to date compared with the industry’s decline of 1.5%. The decline can be primarily attributed to high costs and dismal comps performance.
Papa John's International, Inc. Price and EPS Surprise
Papa John's International, Inc. price-eps-surprise | Papa John's International, Inc. Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Papa John's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Papa John's has an Earnings ESP of +5.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Papa John's carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some stocks worth considering from the Zacks Retail-Wholesale space, as our model shows that these have the right combination of elements to beat on earnings this season.
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +1.63% and carries a Zacks Rank #3. The Zacks Consensus Estimate for EPS is pegged at $1.34, which suggests an increase of 22.9% from the prior-year actuals. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly revenues is pegged at $4.82 billion, which indicates a rise of 7.3% from the year-earlier levels. ROST has a trailing four-quarter earnings surprise of 9.1%, on average.
Ollie's Bargain (OLLI - Free Report) currently has an Earnings ESP of +3.08% and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly EPS of 65 cents implies an increase of 32.7% from the year-ago reported number.
The Zacks Consensus Estimate for quarterly revenues is pegged at $503.8 million, implying a jump of 9.7% from the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 7.3%, on average.
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.88% and a Zacks Rank #3. The Zacks Consensus Estimate for DG’s quarterly revenues is pegged at $9.86 billion, which implies a rise of 5.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for DG’s quarterly earnings has been unchanged at $1.57 in the past 30 days, which calls for a 32.9% decline from the year-ago quarter’s reported number. Dollar General has a trailing four-quarter negative earnings surprise of 1.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.