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Papa John’s Stock Price Fell Due to Weak 1Q18 Earnings


May. 9 2018, Published 1:24 p.m. ET

1Q18 performance

Papa John’s (PZZA) posted its 1Q18 earnings after the market closed on May 8. The company posted an adjusted EPS (earnings per share) of $0.50 on revenues of $427.4 million. Papa John’s revenue declined 4.9% YoY (year-over-year), while its adjusted EPS fell 35.1%.

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Stock performance

Analysts expected Papa John’s to post an EPS of $0.62 on revenues of $438.1 million. The company’s same-store sales growth declined 5.3% in North America. The lower-than-expected 1Q18 revenue and EPS appear to have made investors skeptical about Papa John’s future earnings, which caused its stock price to fall. Papa John’s stock was trading ~3.5% lower in the pre-market hours today.

YTD performance

Overall, 2017 was a tough year for Papa John’s. The company’s stock price fell 34.4%. However, the stock has seen a revival since the beginning of 2018. Papa John’s has returned 4.7% YTD (year-to-date). Domino’s Pizza (DPZ) and Yum! Brands (YUM) have returned 32.5% and 2.3%, respectively. The S&P 500 Index (SPY) and the Consumer Discretionary Select Sector SPDR ETF (XLY) have returned -0.1% and 5.3%, respectively.

In this series

In this series, we’ll discuss Papa John’s performance in 1Q18. We’ll compare the company’s performance with analysts’ expectations. We’ll also discuss management’s guidance for 2018.

Next, we’ll discuss Papa John’s 1Q18 revenue.


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