Papa John’s International, Inc. (NASDAQ:PZZA) slid premarket on Thursday after missing profit expectations in the third quarter and coming in light on revenue, with North America comps turning negative.
Investors also reacted to a sharp drop in earnings and a lowered full-year outlook. The stock later recovered those losses and is now trading higher.
PZZA stock is volatile Thursday. Watch the momentum here.
The company reported third-quarter adjusted earnings per share of 32 cents, missing the analyst consensus estimate of 41 cents.
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Quarterly sales of $508.154 million (flat year over year) missed the Street view of $523.793 million. Revenue rose mainly on $1.9 million in higher other revenue from digital fees and a $1.2 million lift in franchise royalties, driven by International franchisees.
“Our third quarter results reflect strong performance and building momentum of our transformation work in International markets, offset by softer North American sales given current consumer sentiment and a promotional QSR marketplace,” said Todd Penegor, President and CEO.
Metrics
Global systemwide restaurant sales were $1.21 billion, up 2% year over year. Growth was driven by stronger International comparable sales and trailing-12-month net unit growth.
North America comparable sales fell 3%, with Domestic company-owned restaurants down 3%. North America franchised comps also declined 3%, while International comps rose 7%.
Net income was $4 million, down from $42 million a year ago. Adjusted EBITDA was $48 million, compared with $50 million in the prior year quarter.
The company opened 45 new restaurants systemwide in the quarter. North America accounted for 18 of the openings. International markets added 27 locations, including two new restaurants in India.
As of September 28, 2025, there were 5,994 Papa John’s restaurants operating in 51 countries and territories.
Outlook
For fiscal 2025, the company expects systemwide sales to rise 1% to 2% (previously 2% to 5%).
North American comparable sales are expected to be down 2% to 2.5% (previously flat to up 2%).
Adjusted EBITDA is forecast at $190 million to $200 million (previously $200 million to $220 million).
Short Interest
The company has a short float of 3.45 million shares, representing 14.44% of its publicly traded float, indicating a moderately elevated level of short interest among investors betting against the stock.
Price Action: PZZA shares were trading higher by 4.58% to $43.15 at last check Thursday.
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