Fast-food pizza chain Papa John’s (NASDAQ: PZZA) will be announcing earnings results this Thursday morning. Here’s what to look for.
Papa John's missed analysts’ revenue expectations last quarter, reporting revenues of $478.6 million, down 7.7% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
Is Papa John's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Papa John’s revenue to decline 9.1% year on year, a reversal from the 4.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Papa John's has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Papa John’s peers in the traditional fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Starbucks’s revenues decreased 1.4% year on year, beating analysts’ expectations by 1.5%, and Yum China reported revenues up 12.6%, topping estimates by 4.2%. Starbucks traded up 1.6% following the results while Yum China was also up 5.1%.
Read our full analysis of Starbucks’s results here and Yum China’s results here.
Investors in the traditional fast food segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Papa John's is down 11.9% during the same time and is heading into earnings with an average analyst price target of $36.80 (compared to the current share price of $30.52).
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