Shares of Papa John's International Inc. (NASDAQ: PZZA) fell by around 5% on Thursday, November 7th, 2024, after the pizza chain reported mixed third-quarter results and warned of a challenging consumer environment.
For the quarter ended September 2024, Papa John's reported revenue of $506.8 million, down 3.1% year-over-year but beating Wall Street's expectations of $497.3 million. The company's adjusted earnings per share of $0.43 matched analyst estimates but marked an 18.9% decline from the prior year.
The disappointing performance was largely driven by a 6% drop in comparable sales in North America and a 3% decline internationally. Chief Executive Todd Penegor attributed the sales weakness to "a very challenging consumer environment", as inflationary pressures and economic uncertainty continued to weigh on consumer spending.
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