Papa John’s International (PZZA) announced its 2Q16 results on August 2, 2016, after the Market closed. The company posted revenue of $423 million and adjusted EPS (earnings per share) of $0.61. Compared to 2Q15, its revenue grew by 6%, and its adjusted EPS rose by 29.8%.
Papa John’s 2Q16 results beat analysts’ revenue estimate of $414.8 million and EPS (earnings per share) estimate of $0.54. The strong 2Q16 results could have prompted management to raise the company’s same-store sales growth and EPS guidance for 2016. This has increased investor confidence, which drove Papa John’s share price up by 4.6%.
In 2015, Papa John’s was flat. However, it delivered strong 1Q16 and 2Q16 results, which led to a rise in the company’s share price. Year-to-date, the company has returned 38.9%. This year appears to be good for pizza companies. Papa John’s peers Domino’s Pizza (DPZ) and Yum! Brands (YUM) have returned 31.4% and 21%, respectively, during the same period.
In this series, we’ll look at Papa John’s (PZZA) 2Q16 earnings call and notes, along with its performance on key metrics during the quarter. We’ll also cover management’s guidance and analysts’ estimates for the rest of 2016 and beyond.
Let’s start by looking at revenue growth for Papa John’s in 2Q16.