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Papa John's (PZZA) Stock Down 11% in a Year: Can It Revive?
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Shares of Papa John's International, Inc. (PZZA - Free Report) have declined 11.2% in the past year against the industry’s growth of 21.6%. The company’s performance has been negatively impacted by high costs and macroeconomic challenges. However, in the past month, the stock has gained 6.1% outperforming the industry’s growth of 1.3%.
The Zacks Rank #3 (Hold) company has an impressive long-term earnings growth rate of 19.6%. PZZA’s sales in 2023 are likely to witness growth of 3.5% year over year.
Let’s delve deeper.
Factors Likely to Drive Growth
Many of Papa John’s restaurants, located in international markets like the U.K. and Chile, continue to perform strongly. The upside can be attributed to PZZA’s optimized restaurant model, brand design enhancements and increased integration with third-party aggregators to boost its accessibility channels.
In recent years, Papa John’s has entered 15 new countries including Spain, Portugal, Germany, Cambodia, Pakistan, France and Poland. During fourth–quarter fiscal 2022, it reported solid penetration in the Middle East and East Asian markets. It also marked its entry in Jordan with four new restaurants.
During the first quarter of 2023, Papa John’s opened 16 net new restaurants in North America. In the international markets, the company opened 43 net new restaurants. As of Mar 26, 2023, PZZA had a global restaurant count of 5,733, with operations in 48 countries and territories worldwide.
In first-quarter 2023, the company announced a development agreement to enter India in partnership with PJP Investments Group. This partnership plans to open 650 new restaurants in India over the next 10 years.
Image Source: Zacks Investment Research
Papa John’s is on track to meet its 2023 global development outlook of opening net new restaurants in the range of 270-310 net new restaurants. It expects its worldwide net restaurants (from 2022 through 2025) to grow between 1,400 and 1,800 net new units.
Papa John’s is investing heavily in technology-driven initiatives like digital ordering to boost sales. Its online and digital marketing activities have increased significantly over the past several years in response to the rising use of online and mobile web technology. In fact, Papa John’s continues to reinforce its commitment to providing a better customer experience with enhancements to its digital ordering process.
Key Picks
Here we present some better-ranked stocks in the Retail-Wholesale sector.
The Zacks Consensus Estimate for Chuy’s Holdings’ 2023 sales and EPS suggests growth of 9.9% and 27%, respectively, from the year-ago period’s levels.
BJ's Restaurants, Inc. (BJRI - Free Report) flaunts a Zacks Rank #1. BJRI has a long-term earnings growth rate of 15%. The stock has improved 44% in the past year.
The Zacks Consensus Estimate for BJ's Restaurants’ 2023 sales and EPS suggests improvements of 5.5% and 311.8%, respectively, from the year-ago period’s levels.
Arcos Dorados Holdings Inc. (ARCO - Free Report) carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth rate of 9.5%. The stock has gained 48.3% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests rises of 13.4% and 4.4%, respectively, from the year-ago period’s levels.
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Papa John's (PZZA) Stock Down 11% in a Year: Can It Revive?
Shares of Papa John's International, Inc. (PZZA - Free Report) have declined 11.2% in the past year against the industry’s growth of 21.6%. The company’s performance has been negatively impacted by high costs and macroeconomic challenges. However, in the past month, the stock has gained 6.1% outperforming the industry’s growth of 1.3%.
The Zacks Rank #3 (Hold) company has an impressive long-term earnings growth rate of 19.6%. PZZA’s sales in 2023 are likely to witness growth of 3.5% year over year.
Let’s delve deeper.
Factors Likely to Drive Growth
Many of Papa John’s restaurants, located in international markets like the U.K. and Chile, continue to perform strongly. The upside can be attributed to PZZA’s optimized restaurant model, brand design enhancements and increased integration with third-party aggregators to boost its accessibility channels.
In recent years, Papa John’s has entered 15 new countries including Spain, Portugal, Germany, Cambodia, Pakistan, France and Poland. During fourth–quarter fiscal 2022, it reported solid penetration in the Middle East and East Asian markets. It also marked its entry in Jordan with four new restaurants.
During the first quarter of 2023, Papa John’s opened 16 net new restaurants in North America. In the international markets, the company opened 43 net new restaurants. As of Mar 26, 2023, PZZA had a global restaurant count of 5,733, with operations in 48 countries and territories worldwide.
In first-quarter 2023, the company announced a development agreement to enter India in partnership with PJP Investments Group. This partnership plans to open 650 new restaurants in India over the next 10 years.
Image Source: Zacks Investment Research
Papa John’s is on track to meet its 2023 global development outlook of opening net new restaurants in the range of 270-310 net new restaurants. It expects its worldwide net restaurants (from 2022 through 2025) to grow between 1,400 and 1,800 net new units.
Papa John’s is investing heavily in technology-driven initiatives like digital ordering to boost sales. Its online and digital marketing activities have increased significantly over the past several years in response to the rising use of online and mobile web technology. In fact, Papa John’s continues to reinforce its commitment to providing a better customer experience with enhancements to its digital ordering process.
Key Picks
Here we present some better-ranked stocks in the Retail-Wholesale sector.
Chuy's Holdings, Inc. (CHUY - Free Report) sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 23.4%, on average. Shares of CHUY have skyrocketed 97.1% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Chuy’s Holdings’ 2023 sales and EPS suggests growth of 9.9% and 27%, respectively, from the year-ago period’s levels.
BJ's Restaurants, Inc. (BJRI - Free Report) flaunts a Zacks Rank #1. BJRI has a long-term earnings growth rate of 15%. The stock has improved 44% in the past year.
The Zacks Consensus Estimate for BJ's Restaurants’ 2023 sales and EPS suggests improvements of 5.5% and 311.8%, respectively, from the year-ago period’s levels.
Arcos Dorados Holdings Inc. (ARCO - Free Report) carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth rate of 9.5%. The stock has gained 48.3% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests rises of 13.4% and 4.4%, respectively, from the year-ago period’s levels.