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Papa John's (PZZA) Rebranding Efforts to Provide Better Experience

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In an effort to provide better experience to its customers, Papa John's International, Inc. PZZA announced its plan to modify the company’s brand and store layout. Customers will experience new designs for its restaurants, a new logo and a fresh visual brand identity.

The company’s fresh design will provide seamless purchasing as well as pick-up experiences for customers. In a new atmosphere, the company’s customers will be surrounded by premium ingredients as well as delicious food.

The company’s new logo gives an indication that the brand is setting a new tone, which is bold, simple, fun and clean. Papa John’s started rolling out new experiences across its restaurants in a phased manner.

Max Wetzel, Papa Johns’ chief commercial officer, stated, “We are evolving how the Papa Johns experience comes to life across all touchpoints, while remaining true to what got us where we are today and bringing to life our continued aspirations to improve and grow. This new experience is both a celebration of our tremendous momentum and a vision to inspire future growth.”

Papa John’s is investing heavily in technology-driven initiatives like digital ordering to boost sales. The company’s online and digital marketing activities have increased significantly, in the past several years, in response to increasing use of online and mobile web technology. In fact, Papa John’s continues to reinforce its commitment toward providing a better customer experience with enhancements to its digital ordering process.

Zacks Investment Research
Zacks Investment Research

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Price Performance

So far this year, shares of this Zacks Rank #2 (Buy) company have gained 53.9% compared with the industry’s rally of 12%. The company is benefiting from strong comparable sales in North America on solid customer retention and innovation strategies. The company is continually striving to eliminate barriers to expand in the existing international markets and identify new market opportunities.

Papa John’s continues to impress investors with robust comparable sales growth. The company recorded positive comparable sales growth in third-quarter fiscal 2021, which marks the eighth straight quarter of comps growth. It benefitted from menu innovation, operational efficiencies and cost-saving efforts.

In the fiscal third quarter, total comparable sales rose 7.3% year over year compared with 23% growth reported in the prior-year quarter. Domestic company-owned restaurant comps for the reported quarter increased 7.4% compared with 18.2% growth in the year-ago period. In the North America and international segment, the company’s comp sales have increased for the 9th and 10th consecutive quarter, respectively. At North America franchised restaurants, comps rose 6.8% compared with 25.6% growth in the year-ago quarter.

Key Restaurant Picks

Dave & Buster's Entertainment, Inc. PLAY, benefiting from reopening initiatives, expanding vaccinations and excellent operational execution, sports a Zacks Rank #1 (Strong Buy). The company anticipates the momentum to sustain on the back of its strategic initiatives that include a new menu, optimized marketing and technology investments.

Dave & Buster's reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 201.8%. The company’s fiscal 2021 earnings is likely to witness growth of 147.7%. PLAY stock has gained 7.4% in the past three months. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kura Sushi USA, Inc. KRUS carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 15.6%, on average. Shares of the company have gained 288.1% in the past six months.

The Zacks Consensus Estimate for Kura Sushi’s current financial year sales and earnings per share (EPS) suggests growth of 108% and 85.7%, respectively, from the year-ago period’s levels.

Del Taco Restaurants, Inc. TACO has a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 25.7%, on average. Shares of the company have moved up 2.7% in the past six months.

The Zacks Consensus Estimate for Del Taco Restaurants’ current financial year sales and EPS suggests growth of 7.2% and 33.3%, respectively, from the year-ago period’s figures.


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Kura Sushi USA, Inc. (KRUS) : Free Stock Analysis Report

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