Come and Get It: Papa John’s Stock Performance and Returns



Comparative stock performance

Now that we’ve covered the fundamentals of Papa John’s International (PZZA), let’s move on to the most important company aspect that investors tend to evaluate: returns.

Between January 4, 2010, and December 31, 2014, PZZA’s price grew from $11.8 to $55.8, with an overall return of ~373% over five years. This translates into a CAGR (compounded annual growth rate) of ~36%.

In comparison, over the same period, Domino’s Pizza (DPZ) has delivered an overall return of ~984% at a CAGR of ~61%. Yum! Brands (YUM), which owns Pizza Hut, delivered an overall return of ~107.6% at a CAGR of ~18%, whereas McDonald’s Corporation (MCD) has delivered an overall return of ~49% at a CAGR of ~8%.

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Papa John’s EPS over the past five years

Papa John’s EPS (earning per share) for 2010, 2011, 2012, 2013, and 2014 have been $1, $1.09, $1.31, $1.58, and $1.78, respectively. This EPS growth—from $1 in 2010 to $1.78 in 2014—represents an increase of 78% over five years.

By comparison, the EPS of Domino’s increased by 97% over the same five years, and McDonald’s EPS increased by 4.5%, whereas the EPS of Yum! Brands (YUM) decreased by 2% during same period.

The Consumer Discretionary Select Sector SPDR Fund (XLY) has about 10% of its total holdings invested in restaurant stocks, including 1.5% in YUM! Brands and 4% in McDonald’s (MCD). The PowerShares Dynamic Leisure and Entertainment ETF (PEJ) has approximately 2.2% of its total portfolio invested in Papa John’s International (PZZA), and Papa John’s makes up approximately 2.3% of the PowerShares Dynamic Food & Beverage ETF (PBJ).


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