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Papa John's (PZZA) Q4 Earnings Beat Estimates, Revenues Lag
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Papa John’s International, Inc. (PZZA - Free Report) reported mixed fourth-quarter fiscal 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis. Following the results, the company’s shares gained 2.5% during trading hours on Feb 29.
During the fiscal fourth quarter, the company registered benefits from the expansion of the global footprint and enhancements in digital solutions and marketing platforms. Also, it stated improvements in domestic company-owned restaurant-level margins and sequential improvement in U.K. sales with franchisees. The company intends to focus on the Back to Better 2.0 growth initiative and accelerate North America development to drive growth.
Earnings & Revenue Discussion
During the fiscal fourth quarter, the company reported adjusted earnings per share (EPS) of 91 cents, beating the Zacks Consensus Estimate of 73 cents. The company reported an adjusted EPS of 71 cents in the prior-year quarter.
Papa John's International, Inc. Price, Consensus and EPS Surprise
Quarterly revenues of $571.3 million missed the consensus mark of $579 million. However, the top line increased by 8.6% on a year-over-year basis.
Global Restaurant Sales & Comps
In the fiscal fourth quarter, total comparable sales inched up 0.1% year over year.
Domestic company-owned restaurant comps in the quarter under review increased 2.2% year over year compared with 0.8% reported in the year-ago quarter. Our estimate for the metric was 4.5%.
At North America franchised restaurants, comps rose 1.7% year over compared with a 1.1% rise reported in the year-ago quarter. Comps growth at North America restaurants rose 1.8% year over year compared with a 1.1% rise reported in the year-ago quarter.
Comps at international restaurants were down 5.5% year over year compared with a 3.4% fall reported in the prior-year quarter. During the fiscal fourth quarter, total global system-wide restaurant sales growth came in at 11% year over year compared with a 2.8% rise reported in the prior-year quarter.
Operating Highlights
Adjusted operating income in the fiscal fourth quarter totaled $47.4 million compared with $38.2 million reported in the prior-year quarter.
During the quarter under review, total costs and expenses amounted to $528.8 million compared with $490 million reported in the prior-year quarter. Our estimate for the metric was $527.6 million.
Balance Sheet
As of Dec 31, 2023, cash and cash equivalents totaled $40.6 million compared with $47.4 million as of Dec 25, 2022. At the end of the fiscal fourth quarter, the long-term debt net totaled $757.4 million compared with $597.1 million at the end of the fourth quarter of fiscal 2022.
As of Dec 31, 2023, inventories were $36.1 million compared with $41.4 million on Dec 25, 2022. Free cash flow (as of Dec 31, 2023) totaled $116.4 million compared with $39.4 million reported in the prior year.
2023 Highlights
Total revenues in fiscal 2023 amounted to $ 2.13 billion compared with $ 2.1 billion in fiscal 2022.
Adjusted operating income in fiscal 2023 came in at $157 million compared with $157.5 million in fiscal 2022.
In the fiscal 2023, diluted EPS came in at $2.71 per share compared with $2.94 reported in the previous year.
Unit Developments
Papa John’s opened 36 net new restaurants in North America during the fiscal fourth quarter. In the international markets, the company opened 53 net new restaurants. As of Dec 31, the company had a global restaurant count of 5,906, with operations in 50 countries and territories worldwide.
McDonald's Corporation (MCD - Free Report) reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, MCD reported adjusted EPS of $2.95, outpacing the Zacks Consensus Estimate of $2.81. Adjusted earnings increased 11% from the prior-year quarter’s figure. Quarterly net revenues of $6.4 billion missed the consensus mark of $6.5 billion. The top line rose 8% year over year. The upside was backed by menu price increases, effective marketing campaigns and continued digital and delivery growth.
Yum China Holdings, Inc. (YUMC - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
During the quarter, YUMC reported adjusted EPS of 25 cents, beating the Zacks Consensus Estimate of 13 cents. The bottom line surged 92.3% from 13 cents reported a year ago. Quarterly revenues of $2.5 billion outpaced the consensus mark of $2.4 billion. The top line rose 19.4% on a year-over-year basis. Excluding foreign currency translation, revenues increased 21% year over year. The upside can be attributed to net new unit contribution (12%) and same-store sales growth (4%).
Brinker International, Inc. (EAT - Free Report) reported mixed second-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis. Effective marketing and pricing strategies backed the upside. Sequential improvements in guest traffic bode well.
During the quarter, EAT reported adjusted EPS of 99 cents, surpassing the Zacks Consensus Estimate of a loss of $1.47. The company reported an adjusted EPS of 76 cents per share in the prior-year quarter. Quarterly revenues of $1.07 billion missed the Zacks Consensus Estimate of $1.08 billion. The top line increased 5.4% on a year-over-year basis. EAT gained from Chili's solid performance.
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Papa John's (PZZA) Q4 Earnings Beat Estimates, Revenues Lag
Papa John’s International, Inc. (PZZA - Free Report) reported mixed fourth-quarter fiscal 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis. Following the results, the company’s shares gained 2.5% during trading hours on Feb 29.
During the fiscal fourth quarter, the company registered benefits from the expansion of the global footprint and enhancements in digital solutions and marketing platforms. Also, it stated improvements in domestic company-owned restaurant-level margins and sequential improvement in U.K. sales with franchisees. The company intends to focus on the Back to Better 2.0 growth initiative and accelerate North America development to drive growth.
Earnings & Revenue Discussion
During the fiscal fourth quarter, the company reported adjusted earnings per share (EPS) of 91 cents, beating the Zacks Consensus Estimate of 73 cents. The company reported an adjusted EPS of 71 cents in the prior-year quarter.
Papa John's International, Inc. Price, Consensus and EPS Surprise
Papa John's International, Inc. price-consensus-eps-surprise-chart | Papa John's International, Inc. Quote
Quarterly revenues of $571.3 million missed the consensus mark of $579 million. However, the top line increased by 8.6% on a year-over-year basis.
Global Restaurant Sales & Comps
In the fiscal fourth quarter, total comparable sales inched up 0.1% year over year.
Domestic company-owned restaurant comps in the quarter under review increased 2.2% year over year compared with 0.8% reported in the year-ago quarter. Our estimate for the metric was 4.5%.
At North America franchised restaurants, comps rose 1.7% year over compared with a 1.1% rise reported in the year-ago quarter. Comps growth at North America restaurants rose 1.8% year over year compared with a 1.1% rise reported in the year-ago quarter.
Comps at international restaurants were down 5.5% year over year compared with a 3.4% fall reported in the prior-year quarter. During the fiscal fourth quarter, total global system-wide restaurant sales growth came in at 11% year over year compared with a 2.8% rise reported in the prior-year quarter.
Operating Highlights
Adjusted operating income in the fiscal fourth quarter totaled $47.4 million compared with $38.2 million reported in the prior-year quarter.
During the quarter under review, total costs and expenses amounted to $528.8 million compared with $490 million reported in the prior-year quarter. Our estimate for the metric was $527.6 million.
Balance Sheet
As of Dec 31, 2023, cash and cash equivalents totaled $40.6 million compared with $47.4 million as of Dec 25, 2022. At the end of the fiscal fourth quarter, the long-term debt net totaled $757.4 million compared with $597.1 million at the end of the fourth quarter of fiscal 2022.
As of Dec 31, 2023, inventories were $36.1 million compared with $41.4 million on Dec 25, 2022. Free cash flow (as of Dec 31, 2023) totaled $116.4 million compared with $39.4 million reported in the prior year.
2023 Highlights
Total revenues in fiscal 2023 amounted to $ 2.13 billion compared with $ 2.1 billion in fiscal 2022.
Adjusted operating income in fiscal 2023 came in at $157 million compared with $157.5 million in fiscal 2022.
In the fiscal 2023, diluted EPS came in at $2.71 per share compared with $2.94 reported in the previous year.
Unit Developments
Papa John’s opened 36 net new restaurants in North America during the fiscal fourth quarter. In the international markets, the company opened 53 net new restaurants. As of Dec 31, the company had a global restaurant count of 5,906, with operations in 50 countries and territories worldwide.
Zacks Rank
Papa John’s currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Recent Retail-Wholesale Releases
McDonald's Corporation (MCD - Free Report) reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, MCD reported adjusted EPS of $2.95, outpacing the Zacks Consensus Estimate of $2.81. Adjusted earnings increased 11% from the prior-year quarter’s figure. Quarterly net revenues of $6.4 billion missed the consensus mark of $6.5 billion. The top line rose 8% year over year. The upside was backed by menu price increases, effective marketing campaigns and continued digital and delivery growth.
Yum China Holdings, Inc. (YUMC - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
During the quarter, YUMC reported adjusted EPS of 25 cents, beating the Zacks Consensus Estimate of 13 cents. The bottom line surged 92.3% from 13 cents reported a year ago. Quarterly revenues of $2.5 billion outpaced the consensus mark of $2.4 billion. The top line rose 19.4% on a year-over-year basis. Excluding foreign currency translation, revenues increased 21% year over year. The upside can be attributed to net new unit contribution (12%) and same-store sales growth (4%).
Brinker International, Inc. (EAT - Free Report) reported mixed second-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis. Effective marketing and pricing strategies backed the upside. Sequential improvements in guest traffic bode well.
During the quarter, EAT reported adjusted EPS of 99 cents, surpassing the Zacks Consensus Estimate of a loss of $1.47. The company reported an adjusted EPS of 76 cents per share in the prior-year quarter. Quarterly revenues of $1.07 billion missed the Zacks Consensus Estimate of $1.08 billion. The top line increased 5.4% on a year-over-year basis. EAT gained from Chili's solid performance.