Investment firm Irth Capital is working with Papa John's International's largest U.S. franchisee, who controls around 10% of the pizza chain's domestic restaurants, to take the company private, three sources told Reuters.
Papa John's International NASDAQ: PZZA executives said the pizza chain is continuing a broad transformation plan as it navigates softer North American demand, a promotional quick-service restaurant environment and a more cautious consumer.
Papa John's International, Inc. (PZZA) Q1 2026 Earnings Call Transcript
Although the revenue and EPS for Papa John's (PZZA) give a sense of how its business performed in the quarter ended March 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Papa John's International said budget-conscious customers have traded down to smaller pizzas and passed on sides and desserts in the latest quarter, weighing on sales and profit.
Papa John's (PZZA) came out with quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.4 per share. This compares to earnings of $0.36 per share a year ago.
Papa John's (PZZA) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Two of America's most popular national pizza chains are edging closer to selling to new owners as stiff competition, rising commodity costs and waning consumer demand are undercutting performance, according to five people familiar with the discussions.
Papa John's International demonstrates resilience amid macroeconomic volatility, leveraging international expansion and a franchise-heavy model to offset domestic weakness. PZZA's fundamentals and prudent debt management support sustainability, with stable liquidity and a Net Debt/EBITDA of 3.4x ensuring dividend longevity. Valuation via Dividend Discount Model yields a $39.40 target price, implying a 10% upside and a 5.16% dividend yield, justifying a buy rating with caution.
Papa John's is rated Buy, driven by attractive valuation, turnaround potential, and takeover interest amid macro headwinds. PZZA targets $60M in supply chain cost savings, portfolio right-sizing, and international expansion to offset North American weakness. The ongoing $47/share takeover offer could spark a bidding war, highlighting latent value despite operational and macro challenges.
Pizza chain Papa John's International Inc (NASDAQ:PZZA) is up 0.6% trade at $35.44, eyeing a sixth-straight daily win.
Cadence Bank decreased its holdings in Papa John's International, Inc. (NASDAQ: PZZA) by 49.5% during the undefined quarter, according to the company in its most recent disclosure with the SEC. The fund owned 56,255 shares of the company's stock after selling 55,123 shares during the quarter. Cadence Bank owned 0.17% of Papa John's