Papa John's International Inc. (PZZA) stock surged 6.08% in the pre-market trading session on Thursday, following its impressive fourth-quarter and full-year 2024 financial results. The company's solid performance and positive outlook for 2025 fueled investor optimism, driving the stock higher.

In the fourth quarter of 2024, Papa John's reported adjusted earnings per share of $0.63, beating analysts' estimates of $0.50. Total revenues of $530.8 million also surpassed expectations of $516.6 million, despite a 7.1% year-over-year decline due to an additional week of operations in 2023. Excluding the impact of the additional week, total revenues remained roughly flat compared to the prior year.

For the full year 2024, Papa John's reported adjusted diluted earnings per share of $2.34, compared to $2.71 in 2023. Total revenues decreased by 2% to $2.06 billion, excluding the impact of the additional week in 2023. The company's performance was driven by lower comparable sales in North America and international markets, partially offset by higher gross margins in the commissary business.

Papa John's provided an optimistic outlook for 2025, projecting system-wide sales growth of 2% to 5%, flat to 2% comparable sales growth in North America and international markets, and adjusted EBITDA between $200 million and $220 million. The company plans to open 85 to 115 new restaurants in North America and 180 to 200 new restaurants internationally.

The strong financial results, coupled with the positive outlook for 2025, boosted investor confidence in Papa John's growth prospects. The company's focus on improving value perception, simplifying operations, and enhancing digital and loyalty experiences is expected to drive sales momentum and profitability in the coming year.