Will Papa John’s Share Price Continue to Rise after Its 2Q16 Results?


Jul. 26 2016, Published 10:00 p.m. ET

Stock performance

Papa John’s (PZZA), a Kentucky-based takeout and pizza delivery restaurant chain, is set to announce its 2Q16 results after the Market closes on August 2, 2016.

In 2015, Papa John’s share price was flat. However, 2016 has been good for Papa John’s and year-to-date, the company has returned 33%.

Since the announcement of its 1Q16 results on May 3, 2016, the share price of Papa John’s has appreciated by 33.6%. During the same period, its peers Domino’s Pizza (DPZ) and Yum! Brands (YUM) returned 24.6% and 13.3%, respectively.

Measures adopted by the company to serve high-quality pizzas, as well as the expansion of operating margins due to lower commodity prices, helped Papa John’s beat analysts’ EPS estimate in 1Q16.

This had led to a hike in its share price, as Papa John’s closed May 4, 2016, 8% higher than the previous day’s closing price. Continuing the momentum, the company is currently trading at a share price of $74.30, a growth of 33.6% over its May 3, 2016, value of $55.60.

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Series overview

This pre-earnings series will explore what we can expect from Papa John’s 2Q16 earnings release. The series will cover analysts’ estimates for revenue, EBIT (earnings before interest and tax) margins, and earnings per share. To wrap up this series, we’ll look at the company’s valuation multiple and the expected stock price over the next 12 months.

Let’s start with what analysts expect from Papa John’s 2Q16 revenue.


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