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%.
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).