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Papa John's (PZZA) Q1 Earnings Match Estimates, Revenues Top
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Papa John’s International, Inc. (PZZA - Free Report) reported first-quarter fiscal 2022 results, with earnings meeting the Zacks Consensus Estimate and revenues surpassing the same. The top-line surpassed the consensus mark for the for the seventh consecutive quarter. The metrics increased on a year-over-year basis.
Earnings & Revenue Discussion
During the fiscal first quarter, the company reported adjusted earnings per share (EPS) of 95 cents, in line with the Zacks Consensus Estimate. In the prior-year quarter, the company reported adjusted earnings of 91 cents per share.
Quarterly revenues of $542.7 million beat the consensus mark of $538 million by 0.9%. The top line increased 6% on a year-over-year basis. The upside can be attributed to positive comparable sales growth (driven by menu innovation and strategic pricing actions), higher unit counts and a rise in commissary revenues.
Papa John's International, Inc. Price, Consensus and EPS Surprise
In the fiscal first quarter, total comparable sales rose 1.6% year over year compared with growth of 25.4% reported in the prior-year quarter. Domestic company-owned restaurant comps in the quarter under review declined 1.2% year over year against a rise of 23.3% reported in the year-ago quarter.
At North America franchised restaurants, comps rose 2.8% year over year compared with a 27.1% rally reported in the year-ago quarter. Comps at North America restaurants increased 1.9% year over year compared with 26.2% growth reported in the year-ago quarter. Comps at international restaurants were up 0.8% year over year compared with a 23.2% increase reported in the prior-year quarter.
During the fiscal first quarter, total global system-wide restaurant sales growth came in at 5.3% year over year compared with a 26.6% rise reported in the prior-year quarter.
Operating Highlights
Adjusted operating income in the fiscal first quarter totaled $45.2 million compared with $50.7 million reported in the year-ago quarter. During the quarter under review, total costs and expenses amounted to $517.1 million, up 11.2% from the prior-year quarter’s level.
Balance Sheet
As of Mar 27, 2022, cash and cash equivalents totaled $80.7 million compared with $70.6 million as of Dec 26, 2021. At the end of the fiscal first quarter, long-term debt (less current portion) totaled $528.1 million compared with $480.7 million at the end of the fourth quarter of fiscal 2021.
Inventories as of Mar 27, 2022, were $39 million compared with $35 million on Dec 26, 2021. Free cash flow (for three months ended Mar 27, 2022) totaled $15.2 million compared with $52.7 million reported in the year-ago quarter.
During the quarter under review, the company repurchased nearly 301,000 shares with an aggregate cost of $32.7 million and an average price of $108.76 per share. As of Apr 29, the company stated the availability of approximately $369.1 million under its repurchase program.
The company’s board of directors declared a quarterly cash dividend of 35 cents per share, payable May 27, 2022, to its shareholders of record as of May 16, 2022.
Unit Developments
During the fiscal first quarter, Papa John’s opened 15 net new restaurants in North America. In the international markets, the company opened 47 net new restaurants. As of Mar 27, the company had a global restaurant count of 5,524, with operations in 49 countries and territories worldwide. During the quarter, the company announced a development agreement with FountainVest Partners to open more than 1,350 new stores in China by 2040.
In fiscal 2022, the company anticipates net restaurant growth to be in the range of 280-320 units. It expects its worldwide net unit (from fiscal 2023 through 2025) to grow in the range of 6-8% on an annual basis.
Some better-ranked stocks in the same space are BBQ Holdings, Inc. , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Kura Sushi USA, Inc. (KRUS - Free Report) .
BBQ Holdings sports a Zacks Rank #1. BBQ Holdings has a long-term earnings growth of 14%. Shares of the company have increased 10.1% in the past year.
The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and EPS suggests growth of 40.9% and 66.2%, respectively, from the year-ago period’s levels.
Arcos Dorados sports a Zacks Rank #1. Arcos Dorados has a long-term earnings growth of 31.3%. Shares of the company have risen 21.2% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 16.6% and 66.7%, respectively, from the year-ago period’s levels.
Kura Sushi carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 23.7%, on average. Shares of the company have risen 21.4% in the past year.
The Zacks Consensus Estimate for Kura Sushi’s 2022 sales and EPS suggests growth of 111.9% and 81.9%, respectively, from the year-ago period’s levels.
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Papa John's (PZZA) Q1 Earnings Match Estimates, Revenues Top
Papa John’s International, Inc. (PZZA - Free Report) reported first-quarter fiscal 2022 results, with earnings meeting the Zacks Consensus Estimate and revenues surpassing the same. The top-line surpassed the consensus mark for the for the seventh consecutive quarter. The metrics increased on a year-over-year basis.
Earnings & Revenue Discussion
During the fiscal first quarter, the company reported adjusted earnings per share (EPS) of 95 cents, in line with the Zacks Consensus Estimate. In the prior-year quarter, the company reported adjusted earnings of 91 cents per share.
Quarterly revenues of $542.7 million beat the consensus mark of $538 million by 0.9%. The top line increased 6% on a year-over-year basis. The upside can be attributed to positive comparable sales growth (driven by menu innovation and strategic pricing actions), higher unit counts and a rise in commissary revenues.
Papa John's International, Inc. Price, Consensus and EPS Surprise
Papa John's International, Inc. price-consensus-eps-surprise-chart | Papa John's International, Inc. Quote
Global Restaurant Sales & Comps
In the fiscal first quarter, total comparable sales rose 1.6% year over year compared with growth of 25.4% reported in the prior-year quarter. Domestic company-owned restaurant comps in the quarter under review declined 1.2% year over year against a rise of 23.3% reported in the year-ago quarter.
At North America franchised restaurants, comps rose 2.8% year over year compared with a 27.1% rally reported in the year-ago quarter. Comps at North America restaurants increased 1.9% year over year compared with 26.2% growth reported in the year-ago quarter. Comps at international restaurants were up 0.8% year over year compared with a 23.2% increase reported in the prior-year quarter.
During the fiscal first quarter, total global system-wide restaurant sales growth came in at 5.3% year over year compared with a 26.6% rise reported in the prior-year quarter.
Operating Highlights
Adjusted operating income in the fiscal first quarter totaled $45.2 million compared with $50.7 million reported in the year-ago quarter. During the quarter under review, total costs and expenses amounted to $517.1 million, up 11.2% from the prior-year quarter’s level.
Balance Sheet
As of Mar 27, 2022, cash and cash equivalents totaled $80.7 million compared with $70.6 million as of Dec 26, 2021. At the end of the fiscal first quarter, long-term debt (less current portion) totaled $528.1 million compared with $480.7 million at the end of the fourth quarter of fiscal 2021.
Inventories as of Mar 27, 2022, were $39 million compared with $35 million on Dec 26, 2021. Free cash flow (for three months ended Mar 27, 2022) totaled $15.2 million compared with $52.7 million reported in the year-ago quarter.
During the quarter under review, the company repurchased nearly 301,000 shares with an aggregate cost of $32.7 million and an average price of $108.76 per share. As of Apr 29, the company stated the availability of approximately $369.1 million under its repurchase program.
The company’s board of directors declared a quarterly cash dividend of 35 cents per share, payable May 27, 2022, to its shareholders of record as of May 16, 2022.
Unit Developments
During the fiscal first quarter, Papa John’s opened 15 net new restaurants in North America. In the international markets, the company opened 47 net new restaurants. As of Mar 27, the company had a global restaurant count of 5,524, with operations in 49 countries and territories worldwide. During the quarter, the company announced a development agreement with FountainVest Partners to open more than 1,350 new stores in China by 2040.
In fiscal 2022, the company anticipates net restaurant growth to be in the range of 280-320 units. It expects its worldwide net unit (from fiscal 2023 through 2025) to grow in the range of 6-8% on an annual basis.
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 same space are BBQ Holdings, Inc. , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Kura Sushi USA, Inc. (KRUS - Free Report) .
BBQ Holdings sports a Zacks Rank #1. BBQ Holdings has a long-term earnings growth of 14%. Shares of the company have increased 10.1% in the past year.
The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and EPS suggests growth of 40.9% and 66.2%, respectively, from the year-ago period’s levels.
Arcos Dorados sports a Zacks Rank #1. Arcos Dorados has a long-term earnings growth of 31.3%. Shares of the company have risen 21.2% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 16.6% and 66.7%, respectively, from the year-ago period’s levels.
Kura Sushi carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 23.7%, on average. Shares of the company have risen 21.4% in the past year.
The Zacks Consensus Estimate for Kura Sushi’s 2022 sales and EPS suggests growth of 111.9% and 81.9%, respectively, from the year-ago period’s levels.