Papa John's Shares Rise Despite Q4 Earnings Miss

Papa John’s Int’l, Inc. PZZA shares are down 1 percent after reporting a fourth-quarter earnings miss.

Earnings came in at 15 cents per share, missing estimates by 4 cents. Sales came in at $373.981 million, missing estimates by $17.419 million.

The company also issued weak full-year 2019 earnings guidance and sees North American comps down 1-5 percent, with International comps from flat to up 3 percent year-over-year.

The company highlighted a with Starboard to make a $200 million investment in the company’s Series B convertible preferred shares, first reported in early February.

"I am confident in the long-term success of Papa John's," said Steve Ritchie, President and CEO of Papa John's. "With the additional $200 million of financial resources from Starboard, we will make targeted investments in the highest return initiatives that showcase our quality and improve the customer experience. We remain focused on people and pizza and continue to be enthusiastic about the opportunities ahead."

Other Highlights

• North America comp sales decreased 8.1 percent
• International comp sales decreased 2.6 percent
• 56 net unit openings

Papa John's shares were up 2.66 percent in after-hours trading at $42.90.