We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Papa John's (PZZA) Q2 Earnings Beat Estimates, Stock Rises
Read MoreHide Full Article
Papa John’s International, Inc. (PZZA - Free Report) recorded mixed second-quarter 2024 results, wherein its earnings beat the Zacks Consensus Estimate but revenues missed the same. The top declined but the bottom line increased on a year-over-year basis. Following the results, the company’s shares rose 1.7% during trading hours on Aug 8.
Earnings & Revenue Discussion
In the fiscal second quarter, the company reported adjusted earnings per share (EPS) of 61 cents, which beat the Zacks Consensus Estimate of 51 cents. It reported an adjusted EPS of 59 cents in the prior-year quarter.
Quarterly revenues of $507.9 million missed the consensus mark of $519 million. The top line declined 1.3% on a year-over-year basis. The downside was due to lower contributions from the North American commissary segment owing to lower transaction volumes and commodity price declines.
Papa John's International, Inc. Price, Consensus and EPS Surprise
In the fiscal second quarter, total comparable sales declined 2.7% year over year compared with a 1.3% decline in the prior-year quarter. We projected the metric to decline 1%.
Domestic company-owned restaurant comps declined 4.2% year over year against 2.2% growth reported in the year-ago quarter. We projected the metric to decline 1%.
At North America’s franchised restaurants, comps fell 3.4% year over year compared with a 2.3% decline in the year-ago quarter. Comps growth at North America’s restaurants declined 3.6% year over year.
Comps at international restaurants were down 0.1% year over year compared with a 0.7% decline in the prior-year quarter. In the fiscal second quarter, total global system-wide restaurant sales declined 0.7% year over year against a 2% rise reported in the prior-year quarter.
Operating Highlights
Adjusted operating income totaled $38.4 million compared with $36.9 million reported in the prior-year quarter. The rise in adjusted operating income was driven by better profit margins at company-owned restaurants in the United States as well as savings from local marketing efforts. However, these gains were somewhat offset by a roughly $3 million operating loss connected to the acquisition of the UK franchisee and increased depreciation expenses tied to company-owned restaurants and investments in technology platforms.
In the quarter under review, total costs and expenses amounted to $479.7 million compared with $479.6 million in the prior-year quarter. Our estimate for the metric was $489 million.
Balance Sheet
As of Jun 30, 2024, cash and cash equivalents totaled $24.3 million compared with $40.6 million as of Dec 31, 2023. At the end of the fiscal second quarter, the long-term debt net totaled $758.9 million compared with $757.4 million as of Dec 31, 2023.
As of Jun 30, 2024, inventories amounted to $37.7 million compared with $40.6 million on Dec 31, 2023. Free cash flow (as of Jun 30, 2024) totaled $12.8 million compared with $59 million reported in the prior-year period.
Unit Developments
Papa John’s opened 10 new restaurants in North America in the second quarter. As of Jun 30, the company had a global restaurant count of 5,883, with operations in 49 countries and territories worldwide.
The Wendy’s Company (WEN - Free Report) reported dismal second-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. On a year-over-year basis, the top line rose while the bottom line declined. Solid same-restaurant sales and strength in the U.S. breakfast sales and digital sales momentum aided the company’s performance.
The company continues to focus on industry-leading quality, innovation and value. WEN aims to maintain a customer-first approach while driving its restaurant economic model throughout the year and beyond.
Shake Shack Inc. (SHAK - Free Report) posted decent second-quarter 2024 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. The top and bottom lines increased on a year-over-year basis. In the quarter, the company benefited from product innovations, strategic menu pricing, technology implementations and promotions.
Looking ahead, SHAK is committed to achieving efficiency across regions and formats by utilizing drive-throughs and third-party delivery. The company plans to reduce build costs by 10% in 2024 and further lower costs in 2025, enabling the exploration of new real estate options while maintaining returns. It intends to achieve strong unit-level economics and boost ROI, fostering long-term value creation for its shareholders.
The Cheesecake Factory Incorporated (CAKE - Free Report) reported second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased from the prior-year quarter’s figure.
In the quarter, CAKE stated benefits from strong demand and sales performance of new restaurant openings. Also, improvements in food efficiencies, labor productivity, overtime and wage management enhanced restaurant-level profitability. The company focuses on strengthening its operational service to drive long-term growth.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Papa John's (PZZA) Q2 Earnings Beat Estimates, Stock Rises
Papa John’s International, Inc. (PZZA - Free Report) recorded mixed second-quarter 2024 results, wherein its earnings beat the Zacks Consensus Estimate but revenues missed the same. The top declined but the bottom line increased on a year-over-year basis. Following the results, the company’s shares rose 1.7% during trading hours on Aug 8.
Earnings & Revenue Discussion
In the fiscal second quarter, the company reported adjusted earnings per share (EPS) of 61 cents, which beat the Zacks Consensus Estimate of 51 cents. It reported an adjusted EPS of 59 cents in the prior-year quarter.
Quarterly revenues of $507.9 million missed the consensus mark of $519 million. The top line declined 1.3% on a year-over-year basis. The downside was due to lower contributions from the North American commissary segment owing to lower transaction volumes and commodity price declines.
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
Global Restaurant Sales & Comps
In the fiscal second quarter, total comparable sales declined 2.7% year over year compared with a 1.3% decline in the prior-year quarter. We projected the metric to decline 1%.
Domestic company-owned restaurant comps declined 4.2% year over year against 2.2% growth reported in the year-ago quarter. We projected the metric to decline 1%.
At North America’s franchised restaurants, comps fell 3.4% year over year compared with a 2.3% decline in the year-ago quarter. Comps growth at North America’s restaurants declined 3.6% year over year.
Comps at international restaurants were down 0.1% year over year compared with a 0.7% decline in the prior-year quarter. In the fiscal second quarter, total global system-wide restaurant sales declined 0.7% year over year against a 2% rise reported in the prior-year quarter.
Operating Highlights
Adjusted operating income totaled $38.4 million compared with $36.9 million reported in the prior-year quarter. The rise in adjusted operating income was driven by better profit margins at company-owned restaurants in the United States as well as savings from local marketing efforts. However, these gains were somewhat offset by a roughly $3 million operating loss connected to the acquisition of the UK franchisee and increased depreciation expenses tied to company-owned restaurants and investments in technology platforms.
In the quarter under review, total costs and expenses amounted to $479.7 million compared with $479.6 million in the prior-year quarter. Our estimate for the metric was $489 million.
Balance Sheet
As of Jun 30, 2024, cash and cash equivalents totaled $24.3 million compared with $40.6 million as of Dec 31, 2023. At the end of the fiscal second quarter, the long-term debt net totaled $758.9 million compared with $757.4 million as of Dec 31, 2023.
As of Jun 30, 2024, inventories amounted to $37.7 million compared with $40.6 million on Dec 31, 2023. Free cash flow (as of Jun 30, 2024) totaled $12.8 million compared with $59 million reported in the prior-year period.
Unit Developments
Papa John’s opened 10 new restaurants in North America in the second quarter. As of Jun 30, the company had a global restaurant count of 5,883, with operations in 49 countries and territories worldwide.
Zacks Rank
Papa John’s currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Retail-Wholesale Releases
The Wendy’s Company (WEN - Free Report) reported dismal second-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. On a year-over-year basis, the top line rose while the bottom line declined. Solid same-restaurant sales and strength in the U.S. breakfast sales and digital sales momentum aided the company’s performance.
The company continues to focus on industry-leading quality, innovation and value. WEN aims to maintain a customer-first approach while driving its restaurant economic model throughout the year and beyond.
Shake Shack Inc. (SHAK - Free Report) posted decent second-quarter 2024 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. The top and bottom lines increased on a year-over-year basis. In the quarter, the company benefited from product innovations, strategic menu pricing, technology implementations and promotions.
Looking ahead, SHAK is committed to achieving efficiency across regions and formats by utilizing drive-throughs and third-party delivery. The company plans to reduce build costs by 10% in 2024 and further lower costs in 2025, enabling the exploration of new real estate options while maintaining returns. It intends to achieve strong unit-level economics and boost ROI, fostering long-term value creation for its shareholders.
The Cheesecake Factory Incorporated (CAKE - Free Report) reported second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased from the prior-year quarter’s figure.
In the quarter, CAKE stated benefits from strong demand and sales performance of new restaurant openings. Also, improvements in food efficiencies, labor productivity, overtime and wage management enhanced restaurant-level profitability. The company focuses on strengthening its operational service to drive long-term growth.