Zinger Key Points
- Papa John's Q4 sales of $530.77 million and adjusted EPS of $0.63 beat estimates.
- Papa John's sees FY25 system-wide sales growth of 2% - 5%
- Every week, our Whisper Index uncovers five overlooked stocks with big breakout potential. Get the latest picks today before they gain traction.
Papa John’s International Inc PZZA shares are trading higher in premarket on Thursday after the fourth-quarter FY24 earnings.
The company reported fourth-quarter FY24 sales growth of 7% year-on-year to $530.77 million, beating the analyst consensus estimate of $515.994 million.
The lower revenues were largely attributable to approximately $41 million in 2023 from the additional week of operations and a $17.8 million decrease in company-owned restaurant revenues.
Adjusted EPS of $0.63 topped the Street view of $0.50.
Total comparable sales dropped 2.8% versus a growth of 0.1% last year. Comparable sales declined 4% in North America and improved 2% Internationally.
Total global system-wide restaurant sales decreased 7.9%.
The operating margin was 5.6%, and operating income for the quarter plunged 30.6% to $29.5 million.
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The company held $37.9 million in cash and equivalents as of December 29, 2024. It generated an operating cash flow of $106.6 million for the twelve months with a free cash flow of $34.1 million.
Papa John’s recorded 122 net unit growth in the quarter. As of December 29, 2024, there were 6,030 Papa Johns restaurants operating in 51 countries and territories.
The company has $369.1 million remaining available under its share repurchase program as of April 29, 2022.
The company’s first quarter dividend of $0.46 per common share will be paid on February 21, to stockholders of record on February 10.
“I am pleased with the early progress we are seeing in our transformation as we work to improve our value perception, simplify our operations, and enhance our digital and loyalty experiences. These efforts helped to deliver results consistent with our fourth quarter expectations,” said President and CEO Todd Penegor.
Outlook 2025: Papa John’s sees system-wide sales growth of 2% – 5%. The company expects adjusted EBITDA of $200 million – $220 million.
Papa John’s expects North America gross restaurant openings of 85 – 115 and International 180 – 200.
Price Action: PZZA shares are trading higher by 5.97% at $49.00 in premarket on Thursday.
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