PZZA - Papa John's International, Inc.
| Previous Close | 62.61 |
| Open | 62.61 |
| Bid | 0.00 x 1800 |
| Ask | 0.00 x 1200 |
| Day's Range | 62.21 - 63.07 |
| 52 Week Range | 38.29 - 63.29 |
| Volume | 470,316 |
| Avg. Volume | 1,046,413 |
| Market Cap | 2B |
| Beta (3Y Monthly) | 0.41 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -0.49 |
| Earnings Date | Nov 6, 2019 |
| Forward Dividend & Yield | 0.90 (1.44%) |
| Ex-Dividend Date | 2019-11-07 |
| 1y Target Est | 65.82 |
- Thomson Reuters StreetEvents
Edited Transcript of PZZA earnings conference call or presentation 6-Nov-19 3:00pm GMT
Q3 2019 Papa John's International Inc Earnings Call
- Bloomberg
DoorDash Won Food Delivery by Seizing the Suburbs and $2 Billion
(Bloomberg) -- There aren’t many jobs in Davidson, North Carolina, that offer the flexibility and decent pay that Alfonso Auz was looking for. He tried a bunch of gigs, including driving for Uber, before eventually settling on DoorDash Inc. Auz, 47, usually makes at least $150 a day delivering food from restaurants in his hometown, without having to commute to the nearest job center, Charlotte, 40 minutes away. “I usually turn on the app while I’m still at home,” Auz said.Towns like Davidson are at the center of a strategy that secured DoorDash a firm position atop the U.S. food delivery market, said Tony Xu, DoorDash’s chief executive officer. The suburbs, he said, were underestimated by competitors, giving DoorDash the opportunity to forge nationwide exclusivity deals with the likes of the Cheesecake Factory and Chili’s. “While our competitors focus on the cities, we focused on the suburbs,” said Xu. “That’s how we were able to become the market leader.”The other part of the strategy, according to analysts, rival businesses and venture capitalists, involves a war chest of about $2 billion. That’s how much DoorDash has received from investors in the six years since the business was established, and almost two-thirds of it came in the last 18 months. SoftBank Group Corp., the Japanese conglomerate whose investments have reshaped Silicon Valley, took an interest in DoorDash last year and helped lift the valuation of the unprofitable company to $12.6 billion this past May. Other backers include Sequoia Capital and Singaporean government investment funds.Today, DoorDash is the prime example of SoftBank’s investing philosophy seeming to work as intended. Behind SoftBank’s $100 billion tech fund is the idea that an ample supply of money can propel a company to the top of a market. DoorDash accounts for 35% of online food delivery sales in the U.S., according to Edison Trends, a market research firm. DoorDash’s rise has come at the expense of the other major delivery apps from Uber Technologies Inc., Grubhub Inc. and Postmates Inc., which have all lost share in the last year. DoorDash is in 4,000 towns, compared with 500 cities for UberEats. “DoorDash came out of nowhere,” said Hetal Pandya, an analyst at Edison Trends.Critics say DoorDash followed the SoftBank model down a destructive path of growth at all costs and a backward business model that doesn’t account for profit. DoorDash may find itself unpalatable to public market investors, who have largely turned against big unprofitable stocks. The company has been eyeing an initial public offering next year. “We believe we have the right unit economics to enable us to build a sustainable and profitable business,” said a spokeswoman for DoorDash.DoorDash’s spending has impacted competitors. Grubhub shares fell 42% last week in their biggest one-day drop ever, after the company gave a dismal forecast and published an unusual, 10-page manifesto signed by the CEO and financial chief. In it, they throw shade at competitors, saying Grubhub is the only profitable food delivery business. A week later, Uber reported fewer-than-expected food delivery orders in an otherwise favorable quarter. The stock fell to an all-time low the next day.Fast food restaurants aren’t faring much better. Delivery apps charge restaurants fees, sometimes as much as 30% of sales, which cut into profit margins. That has pushed larger chains to negotiate lower fees in exchange for exclusive agreements, as Shake Shack Inc. did with Grubhub. However, going with the third-place app contributed to an underwhelming quarter and reduced sales targets for the burger chain, whose stock dipped 21% Tuesday. The old-fashioned way of hiring drivers isn’t a reliable option, either. The CEO of Papa John’s International Inc. said Wednesday that a shortage of drivers is forcing the pizza company to work with the app providers.Just a few years ago, DoorDash was struggling to find investors and agreed to cut its share price to raise capital. By late last year, annual sales had tripled. But questions remain about how sustainable the business is. Over the summer, a DoorDash investor prepared an informal presentation arguing the merits of a sale of the company to Uber, according to a copy of the document obtained by Bloomberg.Uber, which also counts SoftBank as its largest shareholder, is sitting on $12.7 billion in cash, and its CEO, Dara Khosrowshahi, told analysts on a conference call this week that the company is open to acquisitions in food delivery. However, Khosrowshahi has also committed to cut spending in service of turning a profit by 2021. Representatives for the companies declined to comment on the prospect of a merger. Mike Walsh, an early Uber investor, said DoorDash is probably too big for Uber to swallow.Instead, DoorDash made a purchase of its own. The company spent $410 million in August for Caviar, a food delivery app owned by Square Inc. “We have a lot of money in the bank,” said Xu, the DoorDash CEO. “We are in no rush to spend it all.”Geographic comprehensiveness comes at no small expense to DoorDash, but it’s what draws many restaurant operators to the app. About 80% of Chili’s locations are in the suburbs, and DoorDash is helping bring in customers who may not otherwise eat there, said Steve Provost, the chief concept officer for Chili’s parent company Brinker International Inc. “The idea of non-pizza delivery in the suburbs is a relatively new phenomenon,” he said.DoorDash’s sprawl throughout American suburbia hasn’t hurt its position in major cities, though. Holly Richards, a 29-year-old executive assistant in San Francisco, said she prefers DoorDash because of its competitive prices, wide selection and, most importantly, its generous refund policy. UberEats would only give her a 20% off coupon when she complained that her Indian dumplings arrived cold, Richards said: “DoorDash is the only company that has offered me a full refund for food that did not arrive in a timely matter.”\--With assistance from Leslie Patton and Lizette Chapman.To contact the author of this story: Candy Cheng in San Francisco at ccheng86@bloomberg.netTo contact the editor responsible for this story: Mark Milian at mmilian@bloomberg.net, Anne VanderMeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Barrons.com
Why Papa John’s Shares Are Undervalued: Investment Analyst
This article first appeared on SumZero, the world’s largest research community of buyside investment professionals. Papa John’s (PZZA) is North America’s third largest pizza delivery chain, behind Domino’s and Pizza Hut (Pizza Hut has a substantial eat-in business as well). Units were growing at 2% a year prior to the NFL controversy (see below), and have recently been shrinking at 2%/year.
- Benzinga
MKM Downgrades Papa John's, Stifel Turns Stays Bullish
MKM analyst Brett Levy downgraded Papa John's from Buy to Neutral with a price target lowered from $60 to $55. Papa John's earnings is highlighted by the company's first positive domestic same-store sales performance in two years which signals a potential turnaround could be seen, Levy said.
- Zacks
Papa John's (PZZA) Q3 Earnings Miss, Stock Up on Solid Comps
Papa John's International's (PZZA) top line in third-quarter 2019 gains from positive comparable sales in North America for the first time in two years.
- Barrons.com
Under Armour Stock Needs a Celebrity Rescue. Shaq Is Already Taken.
CEO Kevin Plank might be exiled like Papa John’s founder John Schnatter. The company should follow the lead of Papa John’s, whose shares are surging.
- American City Business Journals
Papa John's new CEO says the company has turned a corner
Papa John’s has hit a milestone in its brand turnaround: For the first time in two years, the company had positive comparable sales growth. “We are beginning to turn the corner on last year’s challenges.” Lynch, who came to Papa John's from Arby's about two months ago, said his top priority has been meeting with and learning from shareholders and franchisees. “Our franchisees are more positive than I would have expected them to be given the challenges that they have faced over the last few years,” Lynch said.
- Yahoo Finance
Papa John's CEO: We want to conquer lunch
All options are on the table for Papa John's to boost sales and profits, says Papa John's CEO Rob Lynch.
- Yahoo Finance
McDonald's is in a leadership crisis, but investors are sticking with the stock
Quite the week for McDonald's, headlined by a new CEO taking the helm. Here's why one investor is sticking with the stock.
- Zacks
Q3 Productivity Slips to -0.3%, Labor Costs Rise 3.6%
To see a negative headline read on U.S. Productivity is thankfully quite rare. The last time we saw this was nearly 4 full years ago.
- American City Business Journals
Papa John's shakes up C-suite, three to leave company
Papa John’s International is streamlining its senior management team, resulting in some new appointments and three executives leaving the company. Max Wetzel, formerly vice president of consumer brands and chief transformation officer at PPG Industries, is joining the company as chief commercial and marketing officer, beginning Nov. 18. Jim Norberg, the company’s senior vice president and chief of restaurant operations, has been named chief operating officer, North America, and Jack Swaysland has been named chief operating officer, international.
- Yahoo Finance
Papa John's reports strong sales, announces management shakeup
Papa John's reported positive same-store sales growth in North America for the first time in two years during its third quarter.
- Bloomberg
Papa John’s New CEO Trims Management as Results Improve
(Bloomberg) -- Papa John’s International Inc. accompanied its better-than-expected sales report with a slew of management changes, including the impending departure of its chief financial officer.CFO Joe Smith will leave the company in 2020, Papa John’s said, and the search for a replacement has begun. Meanwhile, the chain reported that North American systemwide same-store sales -- a key metric for restaurants -- increased 1% last quarter, beating the average estimate from Consensus Metrix and breaking a string of seven straight declines. Read more here.Key InsightsThe upbeat report marks the first with new Chief Executive Officer Rob Lynch at the helm, and its clear he’s making his mark on management. Formerly with Arby’s, Lynch joined the pizza maker in August, more than halfway through the quarter that just ended. Lynch said the company is “realigning Papa John’s senior management, promoting leaders within the company and adding proven talent.”Papa John’s also announced the departure of its chief operating and growth officer and its chief marketing officer. Max Wetzel, a former executive at PPG Industries, will take over as chief commercial and marketing officer. The company also named new chief operating officers for its North America and International divisions.The results give investors fresh insight into a restaurant chain that former leader John Schnatter continues to argue is being badly run without him. Schnatter, still a major shareholder himself, wrote a scathing editorial last week questioning employee morale and accusing management of emphasizing cost-cutting over quality. The quarterly results suggest his rabble-rousing is just that.Revenue of $403.7 million also outpaced estimates. The company now sees North America same-store sales falling 1.5% to 3.5% this year, narrower than the previous range of a 1% to 4% decline.Market ReactionThe shares rose as much as 8.2% in New York trading on Wednesday, the most in more than two months and hitting the highest level since May 2018. They were up 44% year to date through Tuesday, about double the gain in the S&P 500 Index.(Updates share trading)\--With assistance from Cécile Daurat.To contact the reporter on this story: Anne Riley Moffat in New York at ariley17@bloomberg.netTo contact the editors responsible for this story: Crayton Harrison at tharrison5@bloomberg.net, Jonathan Roeder, Lisa WolfsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Zacks
Papa John's (PZZA) Lags Q3 Earnings Estimates
Papa John's (PZZA) delivered earnings and revenue surprises of -8.70% and 4.13%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
- Reuters
UPDATE 2-Papa John's new CEO shakes up top management; CFO to leave
Papa John's International Inc said on Wednesday its finance head would leave the company next year as new Chief Executive Officer Rob Lynch made a slew of top level changes to turn around the pizza chain's stuttering business. Lynch, who was previously president of Arby's Restaurant Group Inc, took over the top job in August and was tasked by activist investor Starboard Value to improve Papa John's sales, which have been dented by the negative publicity surrounding its founder John Schnatter. Schnatter resigned as CEO in 2017 after he came under fire for criticizing the National Football League's leadership over national anthem protests by players.
- MarketWatch
Papa John's shares jump after earnings beat, new management structure announced
Papa John's International Inc. shares jumped 3.2% in Wednesday premarket trading after the pizza chain announced third-quarter earnings and sales that beat expectations. Net loss was $3.1 million, or 10 cents per share, after a loss of $13.3 million, or 42 cents per share, last year. Adjusted EPS of 21 cents beat the FactSet consensus for 22 cents per share. Revenue of $403.7 million was up from $385.2 million last year and ahead of the $385.0 million FactSet guidance. North American franchise same-store sales rose 0.6%, domestic company-owned restaurants saw a 2.2% same-store sales increase, and systemwide North American same-store sales rose 1%. The FactSet consensus was for a 0.4% decline in domestic same-store sales. This is the first time the company had same-store sales growth in North America in two years, according to a statement from Chief Executive Rob Lynch. International same-store sales rose 1.6%, ahead of the FactSet guidance for 1.4%. For 2019, Papa John's expects loss per share of 10 cents to 40 cents, adjusted EPS of $1.00 to $1.20 and North American same-store sales to fall 1% to 4%. Previously, the company expected North American same-store sales to fall 1.5% to 3.5%. FactSet expects domestic same-store sales to fall 2.9%. International same-store sales are expected to be flat to up 3% versus previous guidance for flat to up 2%. FactSet is guiding for 1.9% growth. Papa John's also announced a new management structure. Jim Norberg has been named chief operating officer for North America. He was previously the chief of restaurant operations. Max Wetzel is joining the company as chief commercial and marketing officer, effective Nov. 18. He was previously the chief transformation officer at PPG Industries. and Jack Swaysland has been named chief operating officer for the international business. Papa John's Chief Operating and Growth Officer Mike Nettles and the company's chief marketing officer Karlin Linhardt will leave the company to pursue other opportunities. And Chief Financial Officer Joe Smith will leave in 2020, staying on while the search for a successor takes place. A number of other executives have also been named to the company executive team, including Shane Hutchins, chief supply chain officer, and Marvin Boakye, who has been named chief people and diversity officer. Papa John's stock has gained 43.7% for the year to date while the S&P 500 index is up 22.7% for the period.
- Reuters
Papa John's new CEO shakes up top management; CFO to leave
Lynch, who was previously president of Arby's Restaurant Group Inc, took over the top job in August and was tasked by activist investor Starboard Value to improve Papa John's sales, which have been dented by the negative publicity surrounding its founder John Schnatter. Schnatter resigned as CEO in 2017 after he came under fire for criticizing the National Football League's leadership over national anthem protests by players.
- Business Wire
Papa John’s Announces Third Quarter 2019 Results
Papa John’s International, Inc. today announced financial results for the three and nine months ended September 29, 2019.
- Business Wire
Papa John’s Strengthens and Streamlines Management Team
Papa John's International, Inc. (PZZA) today announced a new, more streamlined senior management team, with additions to the team as well as promotions and expanded roles for key leaders. The updated management structure aligns with the company’s new strategy and priorities. Today I’m announcing a new management structure that will be the foundation on which we build our future,” said Rob Lynch, President and Chief Executive Officer.
- TheStreet.com
[video]Merger Wednesday? Jim Cramer Talks Xerox's Reported HP Bid, Walgreens
Jim Cramer's tackling CVS , the reports that Walgreens is considering going private, and his thoughts on reports that Xerox XRX has made an offer to buy HP . Walgreens Boots Alliance , the giant drugstore and healthcare chain, is looking into the prospect of going private, a deal that would be the largest leveraged buyout in history, reports said Tuesday. People familiar with the matter told Reuters and Bloomberg that the Deerfield, Ill., chain has held informal talks with private-equity firms, wrote TheStreet's Rob Daniel.
- TheStreet.com
Papa John's Misses Earnings Estimates, Chief Financial Officer to Depart
Pizza maker Papa John's reported third-quarter earnings below analysts' expectations and also announced it was making changes to its management team, including the departure of its chief financial officer. "We are all focused on the right things - reinforcing the quality of our food, improving our unit economics, and promoting a company culture that sets us up to win for years to come," CEO Rob Lynch said. The company said Chief Financial Officer Joe Smith will leave the company in 2020.
- American City Business Journals
John Schnatter sells major portion of his remaining stake in Papa John's
John Schnatter has sold a huge portion of his stake in Papa John's. The founder and former CEO of the Louisville-based pizza chain sold 1.9 million shares of common stock on Nov. 1 — more than a third of his remaining stake in the company. Schnatter now has about 2.8 million shares left in Papa Johns, a major decrease from the 9 million shares he started with in May when he first started decreasing his stake. In May, an analyst that follows Papa John's told me that Schnatter was “testing the waters in anticipation of an orderly withdraw,” and he owed a duty to the shareholders to not collapse the price while doing so.
- Benzinga
Q3 Earnings Preview For Papa John's
Papa John's International (NASDAQ: PZZA ) unveils its next round of earnings this Wednesday, November 6. Here is Benzinga's everything-that-matters guide for the earnings announcement. Earnings and Revenue ...
- Yahoo Finance Video
Papa John's Q3 sales beat expectations
Papa John’s Q3 sales beat estimates, but the pizza company's adjusted EPS missed slightly. The company reported that for the first time In 2 years, the company had positive North America same-store sales growth. Yahoo Finance’s Dan Roberts, Kristin Myers and Heidi Chung discuss on YFi AM.
