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After Mixed Q4, Some Still See Papa John's As Patriarch Of The Pizza Space

After Mixed Q4, Some Still See Papa John's As Patriarch Of The Pizza Space

Stephens still find value in Papa John's Int'l, Inc. (NASDAQ: PZZA) despite the pizza company’s mixed fourth-quarter results that saw an EPS beat, with revenue missing the mark.

Papa John's company-owned SSS of +4.8 percent came in below consensus estimate of +6.5 percent, and revenue of $439.6 million missed the Street view of $445.9 million. However, adj. EPS of $0.69 beat $0.66 Street view, as commodities and sales leverage offset higher labor costs.

Related Link: Too Many Slices In The Pizza Pie! What's Behind Recent Pizza Promotions?

Analyst Will Slabaugh, who has an Overweight rating on the stock, said though comps were weaker-than-expected, it outperformed the industry.

“Further, we believe that PZZA is a uniquely positioned story that investors will continue to favor over a multi-year period, given its leadership in technology and convenience,” Slabaugh wrote in a note.

For FY 2017, the company expects EPS growth of 8 to 12 percent and North America SSS growth of 2 to 4 percent (versus consensus of 3.5 percent).

At last check, shares of Papa John’s fell 5.99 percent to $80.50. Slabaugh has a price target of $100, implying a potential upside of 24 percent from the current levels.

Latest Ratings for PZZA

Nov 2019MaintainsBuy
Nov 2019MaintainsOutperform
Nov 2019DowngradesBuyNeutral

View More Analyst Ratings for PZZA
View the Latest Analyst Ratings

Posted-In: Analyst Color Earnings Long Ideas News Price Target Reiteration Restaurants Analyst Ratings Best of Benzinga


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