Market Overview

Brian Sozzi On Papa John's Pizza: 2015 Will Be A Competitive Year


In an article on The Street, Brian Sozzi of Belus Capital Advisors interviewed Papa John's (NASDAQ: PZZA) CEO John Schnatter on the future of the pizza business.

Schnatter told Sozzi that the company has seen success in new pizza concepts including a Greek pizza and a spicy pulled pork pizza. The success has encouraged the company “to try more.” However, new products and innovation do pose a risk to investors, Sozzi notes as profit margins in fast food are thin and volatile during times of food inflation.

For those hoping to be able to grab a slice of pizza for breakfast, don't count on it. Schnatter told Sozzi: “We've gone that route and it wasn't a good fit for us. About five years ago we offered up a breakfast pizza in some test markets. There wasn't much of a demand for it so we decided to shelve the idea.”

Papa John's expects it will be the first pizza chain to reach 50 percent of total online sales this year in both delivery and carryout as mobile ordering continues to grow in popularity. The company hopes that by embracing technology technology along with menu innovations it can beat the Street's estimates after falling short the previous four quarters.

Posted-In: Brian Sozzi John Schnatter Papa John's PizzaAnalyst Color Restaurants


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