Categories Earnings, Retail

Papa John’s Q2 profit drops 25%, misses estimates

Papa John’s International (NASDAQ: PZZA) reported a 25% plunge in earnings for the second quarter due to negative comps for North America restaurants, royalty reductions, and unfavorable foreign exchange rates. The bottom line missed analysts’ expectations while the top line exceeded consensus estimates.

Net income fell by 25% to $8.35 million while earnings per share plunged by 57% to $0.15 due to higher weighted average shares outstanding. Adjusted earnings dropped by 42% to $0.28 per share.

Total revenue decreased by 7.1% to $399.62 million. Excluding the impact of refranchising 62 company-owned restaurants in North America and the China operations in 2018 and a quality control center in Mexico in 2019, revenue declined by 4%.

Papa John's Q2 profit drops 25%, misses estimates
Photo Courtesy: Papa John’s / Facebook post

Looking ahead into the full year 2019, the company now expects a net loss in the range of $0.40 to $0.10 per share compared to the previous EPS forecast of $0.00 to $0.50. Adjusted earnings are still anticipated to be $1.00 to $1.20 per share. Capital expenditures are still predicted to be in the range of $45 million to $50 million.

For the full year, North America comparable sales are now expected to be down 1% to down 4% compared to the previous estimate range of down 1% to down 5%. International comparable sales growth is still predicted to be 0% to 3%. Net global new unit growth is now projected to be 100 to 150 compared to the prior range of 75 to 150.

For the second quarter, system-wide North America comparable sales declined by 5.7% while international same-store sales rose by 0.3%.

Also read: Domino’s Pizza Q2 earnings review

At June 30, 2019, there were 5,345 Papa John’s restaurants operating in all 50 states and in 47 international countries and territories. The company has added 98 net worldwide units over the trailing four quarters ended June 30, 2019. Papa John’s development pipeline as of June 30, 2019, included about 1,080 restaurants (90 units in North America and 990 units internationally).

Shares of Papa John’s International ended Tuesday’s regular session up 1.19% at $43.25 on the Nasdaq. The stock has risen over 2% in the past year while it has fallen over 19% in the past three months.

We’re on Flipboard! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

Thermo Fisher Scientific (TMO) Q4 earnings drop despite higher revenues

Thermo Fisher Scientific Inc. (NYSE: TMO) announced fourth-quarter 2022 financial results, reporting a double-digit fall in adjusted earnings and an increase in revenues. Fourth-quarter revenues increased 7% annually to $11.5

Altria Group (MO) Q4 2022 Earnings: Key financials and quarterly highlights

Altria Group Inc. (NYSE: MO) reported fourth quarter 2022 earnings results today. Net revenues decreased 2.3% year-over-year to $6.1 billion. Net earnings attributable to Altria increased 65.6% to $2.6 billion

AMD Earnings: Advanced Micro Devices Q4 revenue up 16%, profit drops

Semiconductor company Advanced Micro Devices, Inc. (NASDAQ: AMD) reported a decline in fourth-quarter earnings, despite an increase in revenues. Earnings, excluding special items, dropped to $0.69 per share in the

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top