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Papa John's (PZZA) Stock Gains on Q1 Earnings & Revenue Beat
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Shares of Papa John’s International, Inc. (PZZA - Free Report) rose nearly 2% in after-hour trading on May 2, after the company reported better-than-expected first-quarter 2017 results.
Earnings and Revenue Discussion
Adjusted earnings of 77 cents per share beat the Zacks Consensus Estimate of 75 cents by 2.7%. Moreover, earnings increased 11.6% year over year owing to higher revenues and a lower share count.
Revenues of $449.3 million surpassed the consensus mark of $435.5 million by over 3%. Moreover, revenues increased 4.8% year over year primarily on the back of increase in North America franchise royalties and fees, higher North America commissary and other sales along with improved international revenues.
Papa John's International, Inc. Price, Consensus and EPS Surprise
Global restaurant sales growth of 4.9% in the first quarter was better than 2.3% rise a year ago, but lower than 5.3% in the prior quarter.
Excluding foreign currency impact, global restaurant sales growth was 5.5%, which was also better than the year-ago comps growth of 4.2%, but lower than 7.0% in the prior-quarter.
Domestic company-owned restaurant sales were up 0.6%, primarily due to a 3% increase in comparable sales. North America franchise royalties and fees were up 4.3% driven by a 1.7% rise in comparable sales. North America commissary and other sales were up 10.2% given higher volumes along with increased cheese prices charged to franchisees.
Comps at system-wide North American restaurants were up 2.0%, higher than 0.1% comps growth in the year-ago quarter, but lower than the 3.8% growth last quarter.
International revenues were up 3.9% year over year primarily due to higher comparable sales and increased royalty and fee income. Currency affected international revenues by $3.1 million. Comps at system-wide international restaurants increased 6.0%, better than comps growth of 5.7% a year ago and 5.6% in the preceding quarter.
2017 Outlook Reaffirmed
The company reiterated its previously announced guidance for 2017.
For 2017, Papa John’s continues to expect adjusted earnings per share to grow in the range of 8% to 12%.
North America system-wide comps are still projected to rise in the band of 2% to 4%. Meanwhile, international comps are expected to be up in a range of 4% to 6%, in 2017.
Capital expenditures are expected to range between $45 million and $55 million.
The company also continues to expect net global new unit to grow in the range of 4–5%, with majority of the growth anticipated in the second half of year.
Zacks Rank & Stocks to Consider
Papa John’s has a Zacks Rank #3 (Hold). Better-ranked stocks in this sector include Restaurant Brands International Inc. (QSR - Free Report) , Darden Restaurants, Inc. (DRI - Free Report) and Yum China Holdings, Inc. (YUMC - Free Report) . While Restaurant Brands sports a Zacks Rank #1 (Strong Buy), Darden and Yum China carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Restaurant Brands’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 7.41%. Meanwhile, for 2017,earnings per share (EPS) is expected to grow a solid 20.0%.
The Zacks Consensus Estimate for Darden’s fiscal 2017 earnings climbed 1.8%, over the last 60 days. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 3.35%.
The Zacks Consensus Estimate for Yum China’s 2017 earnings climbed 4.4% over the past 60 days. Moreover, for 2017, EPS is expected to improve 10.7%.
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Papa John's (PZZA) Stock Gains on Q1 Earnings & Revenue Beat
Shares of Papa John’s International, Inc. (PZZA - Free Report) rose nearly 2% in after-hour trading on May 2, after the company reported better-than-expected first-quarter 2017 results.
Earnings and Revenue Discussion
Adjusted earnings of 77 cents per share beat the Zacks Consensus Estimate of 75 cents by 2.7%. Moreover, earnings increased 11.6% year over year owing to higher revenues and a lower share count.
Revenues of $449.3 million surpassed the consensus mark of $435.5 million by over 3%. Moreover, revenues increased 4.8% year over year primarily on the back of increase in North America franchise royalties and fees, higher North America commissary and other sales along with improved international revenues.
Papa John's International, Inc. Price, Consensus and EPS Surprise
Papa John's International, Inc. Price, Consensus and EPS Surprise | Papa John's International, Inc. Quote
Behind the Headline Numbers
Global restaurant sales growth of 4.9% in the first quarter was better than 2.3% rise a year ago, but lower than 5.3% in the prior quarter.
Excluding foreign currency impact, global restaurant sales growth was 5.5%, which was also better than the year-ago comps growth of 4.2%, but lower than 7.0% in the prior-quarter.
Domestic company-owned restaurant sales were up 0.6%, primarily due to a 3% increase in comparable sales. North America franchise royalties and fees were up 4.3% driven by a 1.7% rise in comparable sales. North America commissary and other sales were up 10.2% given higher volumes along with increased cheese prices charged to franchisees.
Comps at system-wide North American restaurants were up 2.0%, higher than 0.1% comps growth in the year-ago quarter, but lower than the 3.8% growth last quarter.
International revenues were up 3.9% year over year primarily due to higher comparable sales and increased royalty and fee income. Currency affected international revenues by $3.1 million. Comps at system-wide international restaurants increased 6.0%, better than comps growth of 5.7% a year ago and 5.6% in the preceding quarter.
2017 Outlook Reaffirmed
The company reiterated its previously announced guidance for 2017.
For 2017, Papa John’s continues to expect adjusted earnings per share to grow in the range of 8% to 12%.
North America system-wide comps are still projected to rise in the band of 2% to 4%. Meanwhile, international comps are expected to be up in a range of 4% to 6%, in 2017.
Capital expenditures are expected to range between $45 million and $55 million.
The company also continues to expect net global new unit to grow in the range of 4–5%, with majority of the growth anticipated in the second half of year.
Zacks Rank & Stocks to Consider
Papa John’s has a Zacks Rank #3 (Hold). Better-ranked stocks in this sector include Restaurant Brands International Inc. (QSR - Free Report) , Darden Restaurants, Inc. (DRI - Free Report) and Yum China Holdings, Inc. (YUMC - Free Report) . While Restaurant Brands sports a Zacks Rank #1 (Strong Buy), Darden and Yum China carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Restaurant Brands’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 7.41%. Meanwhile, for 2017,earnings per share (EPS) is expected to grow a solid 20.0%.
The Zacks Consensus Estimate for Darden’s fiscal 2017 earnings climbed 1.8%, over the last 60 days. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 3.35%.
The Zacks Consensus Estimate for Yum China’s 2017 earnings climbed 4.4% over the past 60 days. Moreover, for 2017, EPS is expected to improve 10.7%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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