Papa John's Q1 Sales Slump But Beats On Bottom Line With Strategic Cost Management

Zinger Key Points
  • Papa John's reports a slight decline in Q1 revenue, missing market expectations.
  • Adjusted operating income rose by 10% due to improved restaurant margins and cost discipline

Papa John’s International, Inc. PZZA reported a first-quarter fiscal 2024 decline of 2.5% year-over-year to $513.92 million, missing the consensus of $544.45 million.

The company reported first-quarter adjusted earnings per share of 67 cents, beating the street view of 57 cents.

North America comparable sales were down 2%, and International comparable sales were down 3% YoY. In the quarter under review, the firm witnessed 8 net unit openings.

The global system-wide restaurant sales were $1.23 billion, down 0.9% YoY, due to the prior year’s first quarter having a ~$9.9 million benefit from the high-volume week between Christmas and New Year, which occurs in the fiscal fourth quarter in 2024.

Adjusted operating income of $43 million increased 10% on improved restaurant-level margins and continued focus on cost discipline.

PZZA’s net cash provided by operating activities was $11.987 million, down from $40.788 million a year ago. Free cash outflow stood at $(1.07) million.

“Our teams are taking a disciplined approach to running the business, improving restaurant-level margins and increasing operating profits despite a challenging environment in the first quarter,” said Ravi Thanawala, Papa Johns Interim Chief Executive Officer and Chief Financial Officer. 

As of March-end, 5,914 Papa John’s restaurants were operating in 49 countries and territories.

Price Action: PZZA shares are trading lower by 4.73% at $54.43 at the last check Thursday.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...