Papa John's Q1 Earnings Miss Estimates Reflecting Flat North America Comps, Economic Pressure In UK

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• Papa John's International, Inc. PZZA reported a Q1 2023 revenue decline of 3% Y/Y to $527 million, missing the consensus of $533.7 million.
• Adjusted EPS of $0.68 misses the Street view of $0.69.
• Total comparable sales fell 1.3% versus 1.6% growth in the prior year. Comparable sales declined 5.8% in International restaurants and were flat in North America. 
• Total global system-wide restaurant sales growth was 2.0% (vs. 5.3% a year ago).
• Adjusted operating income for the quarter declined to $39.2 million from $45.2 million in the prior year.
• The company held $46.7 million in cash and equivalents as of March 31, 2023. It generated an operating cash flow of $40.8 million for the year with a free cash flow of $22.4 million.
• Papa John's opened 27 net units in the quarter.
• The company bought back shares worth $209.6 million in Q1.
• On April 25, 2023, the company declared Q2 dividend of $0.42 per share, paid on May 26, 2023, to stockholders of record on May 15, 2023.
• Outlook: The company continues to expect 270 to 310 net new units in 2023 and reiterated its long-term target of 1,400 to 1,800 net new units from 2022 to 2025.
• Price Action: PZZA shares are trading higher by 3.83% at $78.16 on the last check Thursday.