For 2019, analysts expect Papa John’s (PZZA) to post revenues of $1.52 billion—a fall of 3.6% from $1.57 billion in 2018. In 2019, the company’s management expects to open 75–150 new restaurants across the globe. The company’s same-store sales in North America are expected to fall 1%–5% during the same period. The same-store sales in international markets are expected to increase 0%–3%.
Papa John’s is focusing on menu innovations, enhancing customers’ experience through implementing digital advancements, employee training, and various marketing and promotional initiatives to drive its sales.
Papa John’s reintroduced the Philly Cheesesteak Pizza in February. The company plans to introduce the Ultimate Pepperoni, Philly Cheesesteak, Meatball Pepperoni, Fiery Buffalo Chicken, Zesty Italian Trio, and the Super Hawaiian Pizza in March.
In the fourth quarter, the company relaunched its Papa Rewards loyalty program. The company will be utilizing the data collected from the program to engage in one-on-one marketing with its customers. The company also plans to launch TV and digital campaigns this month to showcase its superior ingredients and attract young customers.
Papa John’s has integrated Apple Pay and Google Pay on its mobile application. The company has expanded its ordering process to take orders from Apple TV and Amazon Alexa. Papa John’s also takes orders through DoorDash, which has a delivery service option for 1,300 restaurants. All of these initiatives are expected to drive Papa John’s same-store sales.
Next, we’ll discuss analysts’ EPS expectations for 2019.
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