What Analysts Expect from Papa John’s Sales in the Next 4 Quarters
For the next four quarters, analysts expect Papa John’s (PZZA) to post revenue of $1.85 billion, which represents growth of 5.7% from $1.75 billion in the corresponding four quarters of the previous year.
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Analysts expect revenue growth to be driven by the addition of new restaurants and positive same-store sales growth (or SSSG). Papa John’s management expects to increase the company’s restaurant unit count by 3%–4% in 2017. The estimate has factored in closing down 66 restaurants in India in 2Q16. Also, management has stated that, globally, it has 1,100 restaurants in the pipeline.
For 2017, the company’s management has set the SSSG guidance to 2%–4% for the domestic market and 4%–6% for international markets. To drive its SSSG, Papa John’s continues to focus on enhancing customers’ experience through digital advancements and improving the quality of menu items. In June 2017, the company introduced an instant ordering facility directly from the company’s Facebook page. On August 7, Papa John’s announced the availability of never-frozen gluten-free crust across its US restaurants.
For the next four quarters, analysts expect Domino’s Pizza’s (DPZ) revenue to rise 10.0% while Yum! Brands’ (YUM) revenue is expected to fall 35.5%. The decline in Yum! Brands’ revenue is largely due to a spinoff of its China operations in October 2016.
Next, we’ll look at analysts’ EPS estimates for the next four quarters.