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Papa John's Fortifies Presence in Mexico with 100th Outlet
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World’s third largest pizza delivery company, Papa John’s International, Inc. (PZZA - Free Report) expanded further in Mexico with the launch of its 100th outlet in the country. The newest addition is located in Zona Azul in Ciudad Satelite in the Metropolitan area of Mexico City.
In fact, this marks an important milestone for the company as it had unveiled its first international store in Mexico itself in the year 1998.
Notably, the new restaurant is in agreement with Orquest Foods, which is owned by the Clariond Lozano family and has been in the food business for the past 10 years. Moreover, the company plans to open seven additional stores with Orquest Foods this year.
Orquest Foods is the same franchisee with which the company had inked a restaurant development deal in Sep 2016 to build 60 restaurants throughout Mexico during the course of the next eight years.
It is to be noted that international expansion has been the backbone of Papa John’s operations recently. In fact, the fourth quarter of 2016 marked the 28th consecutive quarter of positive comps in the international segment. Currently, the company has more than 1650 international restaurants in 45 countries.
Meanwhile, Papa John’s commitment to provide quality food is commendable and should appeal to health conscious customers. Besides product innovation, the company is also focusing on digital innovation to attract new customers and drive growth and efficiency. Its strategic partnerships, large scale expansion plans and increased focus on franchising seem to bode well.
However, owing to its large international presence, Papa John’s is exposed to risks of fluctuations in currency exchange rates, which impacts the company’s top line. Moreover, an increasing wage rate environment and a challenging industry backdrop remain potent causes of concern for most restaurant chains like Jack in the Box Inc. (JACK - Free Report) and Brinker International, Inc. (EAT - Free Report) .
But pizza giants like Papa John’s and Domino’s Pizza, Inc. (DPZ - Free Report) are riding on the certitude that the demand for pizzas is unlikely to go down in the coming days. In fact, shares of the company increased 43% over the last one year in contrast to the Zacks categorized Retail–Restaurants industry’s loss of 3.9%.
Additionally, the company’s earnings surpassed the Zacks Consensus Estimate consistently in each of the trailing four quarters, with an average beat of 10.26%. Also, for full-year 2017 sales growth is pegged at nearly 4%, while EPS is likely to grow 10.2%.
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Papa John's Fortifies Presence in Mexico with 100th Outlet
World’s third largest pizza delivery company, Papa John’s International, Inc. (PZZA - Free Report) expanded further in Mexico with the launch of its 100th outlet in the country. The newest addition is located in Zona Azul in Ciudad Satelite in the Metropolitan area of Mexico City.
In fact, this marks an important milestone for the company as it had unveiled its first international store in Mexico itself in the year 1998.
Notably, the new restaurant is in agreement with Orquest Foods, which is owned by the Clariond Lozano family and has been in the food business for the past 10 years. Moreover, the company plans to open seven additional stores with Orquest Foods this year.
Orquest Foods is the same franchisee with which the company had inked a restaurant development deal in Sep 2016 to build 60 restaurants throughout Mexico during the course of the next eight years.
It is to be noted that international expansion has been the backbone of Papa John’s operations recently. In fact, the fourth quarter of 2016 marked the 28th consecutive quarter of positive comps in the international segment. Currently, the company has more than 1650 international restaurants in 45 countries.
Meanwhile, Papa John’s commitment to provide quality food is commendable and should appeal to health conscious customers. Besides product innovation, the company is also focusing on digital innovation to attract new customers and drive growth and efficiency. Its strategic partnerships, large scale expansion plans and increased focus on franchising seem to bode well.
However, owing to its large international presence, Papa John’s is exposed to risks of fluctuations in currency exchange rates, which impacts the company’s top line. Moreover, an increasing wage rate environment and a challenging industry backdrop remain potent causes of concern for most restaurant chains like Jack in the Box Inc. (JACK - Free Report) and Brinker International, Inc. (EAT - Free Report) .
But pizza giants like Papa John’s and Domino’s Pizza, Inc. (DPZ - Free Report) are riding on the certitude that the demand for pizzas is unlikely to go down in the coming days. In fact, shares of the company increased 43% over the last one year in contrast to the Zacks categorized Retail–Restaurants industry’s loss of 3.9%.
Additionally, the company’s earnings surpassed the Zacks Consensus Estimate consistently in each of the trailing four quarters, with an average beat of 10.26%. Also, for full-year 2017 sales growth is pegged at nearly 4%, while EPS is likely to grow 10.2%.
Papa John currently carries a Zacks Rank #2 (Buy), which further indicates robust fundamentals and expectations of outperformance in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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