Zacks Investment Research lowered shares of Papa John’s Int’l (NASDAQ:PZZA) from a hold rating to a sell rating in a research report report published on Wednesday morning.
According to Zacks, “Shares of Papa John’s have underperformed the industry in the past year. During third-quarter 2018, both earnings and revenues lagged the Zacks Consensus Estimate and also declined year over year. This downside can be attributed to dismal domestic company-owned restaurant sales and a decline in North America commissary sales on weak volumes. This was partially mitigated by higher international sales, other revenues and a positive impact of the forex rates. Moreover, the company is likely to benefit from its consistent international expansion plans and strategic partnerships. Also, Papa John’s is investing heavily in technology-driven initiatives like digital ordering to boost sales. Additionally, in order to revive its brand image and reinvigorate growth, the company announced an assistance program for its U.S. and Canada franchisees.”
PZZA has been the topic of several other reports. Citigroup boosted their target price on Papa John’s Int’l from $51.00 to $64.00 and gave the stock a buy rating in a report on Monday, November 12th. ValuEngine raised Papa John’s Int’l from a sell rating to a hold rating in a report on Friday, September 28th. BidaskClub raised Papa John’s Int’l from a strong sell rating to a sell rating in a report on Saturday, September 29th. Bank of America raised Papa John’s Int’l from a neutral rating to a buy rating in a report on Monday, August 27th. Finally, Longbow Research raised Papa John’s Int’l from a neutral rating to a buy rating in a report on Monday, August 13th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and six have issued a buy rating to the company. Papa John’s Int’l currently has a consensus rating of Hold and an average price target of $59.50.
Papa John’s Int’l (NASDAQ:PZZA) last released its earnings results on Tuesday, November 6th. The company reported $0.20 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.23 by ($0.03). Papa John’s Int’l had a negative return on equity of 27.98% and a net margin of 2.64%. The company had revenue of $364.01 million during the quarter, compared to the consensus estimate of $390.62 million. During the same period last year, the firm posted $0.60 earnings per share. The company’s revenue was down 15.7% compared to the same quarter last year. On average, sell-side analysts anticipate that Papa John’s Int’l will post 1.5 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Friday, November 23rd. Shareholders of record on Monday, November 12th were issued a $0.225 dividend. This represents a $0.90 annualized dividend and a yield of 1.97%. The ex-dividend date was Thursday, November 8th. Papa John’s Int’l’s dividend payout ratio (DPR) is 34.35%.
Several large investors have recently made changes to their positions in PZZA. Credit Suisse AG lifted its holdings in shares of Papa John’s Int’l by 1,565.4% during the third quarter. Credit Suisse AG now owns 563,736 shares of the company’s stock valued at $28,909,000 after purchasing an additional 529,887 shares in the last quarter. FIL Ltd bought a new position in shares of Papa John’s Int’l during the third quarter valued at $24,598,000. Litespeed Management L.L.C. bought a new position in shares of Papa John’s Int’l during the third quarter valued at $10,317,000. Point72 Asset Management L.P. lifted its holdings in shares of Papa John’s Int’l by 121.5% during the second quarter. Point72 Asset Management L.P. now owns 294,043 shares of the company’s stock valued at $14,914,000 after purchasing an additional 161,302 shares in the last quarter. Finally, Canada Pension Plan Investment Board lifted its holdings in shares of Papa John’s Int’l by 231.7% during the third quarter. Canada Pension Plan Investment Board now owns 222,900 shares of the company’s stock valued at $11,430,000 after purchasing an additional 155,700 shares in the last quarter. 80.47% of the stock is currently owned by hedge funds and other institutional investors.
About Papa John’s Int’l
Papa John's International, Inc operates and franchises pizza delivery and carryout restaurants under the Papa John's trademark in the United States and internationally. It operates through five segments: Domestic Company-Owned Restaurants, North America Commissaries, North America Franchising, International Operations, and All Others.
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