Papa John’s International, Inc. (PZZA - Free Report) reported fourth-quarter fiscal 2022 results, with earnings and revenues beating the Zacks Consensus Estimate. However, the top and the bottom line declined on a year-over-year basis.
Following the results, the company’s shares dropped 6% during trading hours on Feb 23. Negative investor sentiments were witnessed as the company cited a challenging macro environment, including softening economic conditions (in the U.K.), food and wage inflation and high energy prices. The company anticipates international comp sales to remain under pressure throughout 2023.
Earnings & Revenue Discussion
During the fiscal fourth quarter, the company reported adjusted earnings per share (EPS) of 71 cents, beating the Zacks Consensus Estimate of 65 cents. In the prior-year quarter, the company reported an adjusted EPS of 75 cents.
Quarterly revenues of $526.2 million beat the consensus mark of $522 million by 0.7%. However, the top line decreased 0.5% on a year-over-year basis.
Global Restaurant Sales & Comps
In the fiscal fourth quarter, total comparable sales growth came in at breakeven compared with 8.6% growth reported in the prior-year quarter. Domestic company-owned restaurant comps in the quarter under review increased 0.8% year over year compared with 10.2% rise reported in the year-ago quarter.
At North America franchised restaurants, comps inched up 1.1% year over year compared with 11.3% growth reported in the year-ago quarter. Comps at North America restaurants increased 1.1% year over year compared with 11.1% growth in the year-ago quarter. Comps at international restaurants were down 3.4% year over year against growth of 2.4% reported in the prior-year quarter.
During the fiscal fourth quarter, total global system-wide restaurant sales growth came in at 2.8% year over year compared with a 13.1% rise reported in the prior-year quarter.
Operating Highlights
Adjusted operating income in the fiscal fourth quarter totaled $38.2 million compared with $41.9 million reported in the year-ago quarter. During the quarter under review, total costs and expenses amounted to $490 million, compared with $490.7 million reported in the prior-year quarter.
Balance Sheet
As of Dec 25, 2022, cash and cash equivalents totaled $47.4 million compared with $36.6 million as of Sep 25, 2022. At the end of the fiscal fourth quarter, the long-term debt net totaled $597.1 million compared with $548.8 million at the end of the third quarter of fiscal 2022.
Inventories as of Dec 25, 2022, were $41.4 million compared with $35 million on Dec 26, 2021. Free cash flow (as on Dec 25, 2022) totaled $39.4 million compared with $109.7 million reported in the prior year period.
During the quarter under review, the company repurchased 361,000 shares with an aggregate cost of $30 million. As of Dec 25, the company stated the availability of approximately $299.8 million under its repurchase program.
2022 Highlights
Total revenues in fiscal 2022 amounted to $2,102.1 million compared with $2,068.4 million in fiscal 2021.
Adjusted operating income in fiscal 2022 came in at $157.5 million compared with $181.3 million in fiscal 2021.
In fiscal 2022, diluted EPS came in at $2.94 per share compared with $3.51 reported in the previous year.
Unit Developments
During the fiscal fourth quarter, Papa John’s opened 18 net new restaurants in North America. In the international markets, the company opened 99 net new restaurants. As of Dec 25, the company had a global restaurant count of 5,706, with operations in 48 countries and territories worldwide.
Zacks Rank & Key Picks
Papa John’s currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Retail – Restaurants industry are Chuy's Holdings, Inc. (CHUY - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Brinker International, Inc. (EAT - Free Report) .
Chuy’s Holdings currently sports a Zacks Rank #1. CHUY has a trailing four-quarter earnings surprise of 19.1%, on average. Shares of CHUY have increased 16.7% in the past year.
The Zacks Consensus Estimate for Chuy’s Holdings 2023 sales and EPS suggests growth of 10.7% and 16.1%, respectively, from the corresponding year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth of 11.6%. Shares of the company have increased 11% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests growth of 8.1% and 4.2%, respectively, from the year-ago period’s levels.
Brinker carries a Zacks Rank #2. EAT has a long-term earnings growth rate of 7.1%. The stock has declined 4.3% in the past year.
The Zacks Consensus Estimate for Brinker’s 2024 sales and EPS suggests growth of 3.9% and 36.5%, respectively, from the year-ago period’s reported levels.
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Papa John’s International, Inc. (PZZA - Free Report) reported fourth-quarter fiscal 2022 results, with earnings and revenues beating the Zacks Consensus Estimate. However, the top and the bottom line declined on a year-over-year basis.
Following the results, the company’s shares dropped 6% during trading hours on Feb 23. Negative investor sentiments were witnessed as the company cited a challenging macro environment, including softening economic conditions (in the U.K.), food and wage inflation and high energy prices. The company anticipates international comp sales to remain under pressure throughout 2023.
Earnings & Revenue Discussion
During the fiscal fourth quarter, the company reported adjusted earnings per share (EPS) of 71 cents, beating the Zacks Consensus Estimate of 65 cents. In the prior-year quarter, the company reported an adjusted EPS of 75 cents.
Quarterly revenues of $526.2 million beat the consensus mark of $522 million by 0.7%. However, the top line decreased 0.5% on a year-over-year basis.
Global Restaurant Sales & Comps
In the fiscal fourth quarter, total comparable sales growth came in at breakeven compared with 8.6% growth reported in the prior-year quarter. Domestic company-owned restaurant comps in the quarter under review increased 0.8% year over year compared with 10.2% rise reported in the year-ago quarter.
At North America franchised restaurants, comps inched up 1.1% year over year compared with 11.3% growth reported in the year-ago quarter. Comps at North America restaurants increased 1.1% year over year compared with 11.1% growth in the year-ago quarter. Comps at international restaurants were down 3.4% year over year against growth of 2.4% reported in the prior-year quarter.
During the fiscal fourth quarter, total global system-wide restaurant sales growth came in at 2.8% year over year compared with a 13.1% rise reported in the prior-year quarter.
Operating Highlights
Adjusted operating income in the fiscal fourth quarter totaled $38.2 million compared with $41.9 million reported in the year-ago quarter. During the quarter under review, total costs and expenses amounted to $490 million, compared with $490.7 million reported in the prior-year quarter.
Balance Sheet
As of Dec 25, 2022, cash and cash equivalents totaled $47.4 million compared with $36.6 million as of Sep 25, 2022. At the end of the fiscal fourth quarter, the long-term debt net totaled $597.1 million compared with $548.8 million at the end of the third quarter of fiscal 2022.
Inventories as of Dec 25, 2022, were $41.4 million compared with $35 million on Dec 26, 2021. Free cash flow (as on Dec 25, 2022) totaled $39.4 million compared with $109.7 million reported in the prior year period.
During the quarter under review, the company repurchased 361,000 shares with an aggregate cost of $30 million. As of Dec 25, the company stated the availability of approximately $299.8 million under its repurchase program.
2022 Highlights
Total revenues in fiscal 2022 amounted to $2,102.1 million compared with $2,068.4 million in fiscal 2021.
Adjusted operating income in fiscal 2022 came in at $157.5 million compared with $181.3 million in fiscal 2021.
In fiscal 2022, diluted EPS came in at $2.94 per share compared with $3.51 reported in the previous year.
Unit Developments
During the fiscal fourth quarter, Papa John’s opened 18 net new restaurants in North America. In the international markets, the company opened 99 net new restaurants. As of Dec 25, the company had a global restaurant count of 5,706, with operations in 48 countries and territories worldwide.
Zacks Rank & Key Picks
Papa John’s currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Retail – Restaurants industry are Chuy's Holdings, Inc. (CHUY - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Brinker International, Inc. (EAT - Free Report) .
Chuy’s Holdings currently sports a Zacks Rank #1. CHUY has a trailing four-quarter earnings surprise of 19.1%, on average. Shares of CHUY have increased 16.7% in the past year.
The Zacks Consensus Estimate for Chuy’s Holdings 2023 sales and EPS suggests growth of 10.7% and 16.1%, respectively, from the corresponding year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth of 11.6%. Shares of the company have increased 11% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests growth of 8.1% and 4.2%, respectively, from the year-ago period’s levels.
Brinker carries a Zacks Rank #2. EAT has a long-term earnings growth rate of 7.1%. The stock has declined 4.3% in the past year.
The Zacks Consensus Estimate for Brinker’s 2024 sales and EPS suggests growth of 3.9% and 36.5%, respectively, from the year-ago period’s reported levels.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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