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Papa John's (PZZA) Seeks To Boost Hirings With New Bonuses

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Papa John's International, Inc. (PZZA - Free Report) , recently announced new hiring, referral and appreciation bonuses to support its growth and transformation initiative. Following the announcement, shares of the company inched up 1.5% during trading hours on Jul 8.

The new bonus programs offer $50 referral bonuses for corporate team members for every new hire they bring in, while the new team members are entitled to an additional bonus of $50. Moreover, existing corporate team members are eligible for appreciation bonuses up to $400, in the form of increments throughout the year. Given the importance of workforce for sustained growth, the company also initiated expanded health, wellness, paid time-off and college tuition benefits, to support the same.

In this regard, president & CEO of Papa John's, Rob Lynch, stated, Similar to programs being offered by our franchisees, these new bonuses for our team members in our corporate restaurants and QCCs reflect the value we place on growing, retaining and supporting our dedicated team.”

Meanwhile, the initiative is likely to cover approximately 14,000 front-line team members in the company’s corporate restaurants and supply chain. The company stated that it is likely to invest approximately $2.5 million in these initiatives through 2021.

Price Performance

Zacks Investment ResearchImage Source: Zacks Investment Research

Coming to price performance, shares of Papa John's have gained 25.6% so far this year compared with the industry’s 10.6% growth. Notably, the company has been benefitting from its loyalty program, product innovation, partnerships, international expansion and franchising initiatives. This along with focus on optimized restaurant model, brand design enhancements and increased integration with third-party aggregators to boost accessibility channels, bode well. Going forward, the company continues to reinforce its commitment toward providing better customer experience with enhancements to its digital ordering process. Nevertheless, earnings estimates for 2021 have moved up in the past 60 days, depicting analysts’ optimism regarding the stock’s growth potential.

Zacks Rank & Other Key Picks

Papa John’s currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks in the same space include Chuy's Holdings, Inc. (CHUY - Free Report) , Dine Brands Global, Inc. (DIN - Free Report) and Bloomin' Brands, Inc. (BLMN - Free Report) , each carrying a Zacks Rank #2.

Chuy's Holdings has a trailing four-quarter earnings surprise of 127.6%, on average.

Dine Brands’ 2021 earnings are expected to surge 269.3%.

Bloomin' Brands has a three-five year earnings per share growth rate of 2.5%.

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