Papa John's (PZZA) Reports Q3 Earnings: What Key Metrics Have to Say

Zacks
07 Nov 2024

For the quarter ended September 2024, Papa John's (PZZA) reported revenue of $506.81 million, down 3.1% over the same period last year. EPS came in at $0.43, compared to $0.53 in the year-ago quarter.

The reported revenue represents a surprise of +3.06% over the Zacks Consensus Estimate of $491.77 million. With the consensus EPS estimate being $0.42, the EPS surprise was +2.38%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Papa John's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Number of restaurants-Papa John's-Company-owned - Domestic: 537 versus the six-analyst average estimate of 539.
  • Number of Restaurants - Total North America: 3,454 compared to the 3,455 average estimate based on six analysts.
  • Comparable sales growth - North America franchised restaurants: -5.3% versus -5.7% estimated by six analysts on average.
  • Comparable sales growth - Domestic company-owned restaurants: -6.7% compared to the -6.8% average estimate based on six analysts.
  • Number of Restaurants - System-wide: 5,908 compared to the 5,899 average estimate based on six analysts.
  • Number of Restaurants - Franchised North America: 2,917 versus the six-analyst average estimate of 2,917.
  • Number of Restaurants - International: 2,454 compared to the 2,444 average estimate based on six analysts.
  • Revenues- North America franchise royalties and fees: $33.02 million versus the six-analyst average estimate of $33.63 million. The reported number represents a year-over-year change of -5.8%.
  • Revenues- International revenues: $33.02 million versus the six-analyst average estimate of $33.18 million. The reported number represents a year-over-year change of -23.1%.
  • Revenues- Other revenues: $60.89 million versus $58.92 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -3% change.
  • Revenues- North America commissary revenues: $210.39 million versus $195.51 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +2.7% change.
  • Revenues- Domestic Company-owned restaurants: $168.67 million versus $169.51 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -4.8% change.
View all Key Company Metrics for Papa John's here>>>

Shares of Papa John's have returned +20.7% over the past month versus the Zacks S&P 500 composite's +3.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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