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Here comes Papa John's … (PZZA)



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  • Papa John's shares changed little late on Tuesday after the company reported quarterly and full-year earnings. The quarterly profits and revenues of the pizza chain failed both analysts' expectations.
  • The company said it had incurred "special fees" of $ 25.9 million in the fourth quarter ̵
    1; and $ 50.7 million for the full year partly to "re-imaging costs" at almost all domestic restaurants.
  • The report comes less than a month after the company received an investment from Starboard Value, the New York-based activist hedge fund.
  • Shares have fallen 27% over the past year, but were up 5% so far in 2019.
  • See Papa John's trading life.

Papa John's shares jumped in after-trading on Tuesday after the company reported quarterly and full-year earnings. The pizza chain reported fourth-quarter earnings and earnings that missed analysts' expectations.

Here's what Papa Johns reported, compared to which analysts were investigated by Bloomberg, expected:

  • Adjusted earnings per share (EPS): $ 0.15
  • Revenue: $ 374 Millions against $ 393.2 million expected.

At the same time, international comparable sales fell 2.6% in the fourth quarter and 1.6% for the whole year.

The company said it incurred "special charges" of $ 25.9 million in the fourth quarter – and $ 50.7 million for the full year – partly due to "re-imaging costs" at almost all domestic restaurants.

Last August, it was reported that Papa Johns removed traces of his scandalous founder, John Schnatter, who stepped down as head of the company in mid-2018.

The report comes less than a month after the activation fund Starboard Value has invested $ 200 million in the pizza chain, and installed its CEO as leader.

Steve Ritchie, the company's president and CEO, said in a release Tuesday that the pizza chain had planned to make "targeted investments in the highest return initiatives" with the $ 200 million investment.

Papa John's shares have been under pressure over the past year.

Shares in the pizza chain have fallen 27% over the past year, but were up 5% on Tuesday.


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