LOUISVILLE - Papa John's International, Inc. (NASDAQ:PZZA), currently trading at $36.81 and near its 52-week low, disclosed preliminary sales and unit growth figures for the fourth quarter and the entire fiscal year that ended on December 29, 2024. The company, with a market capitalization of $1.2 billion, has seen its stock decline nearly 47% over the past year, suggesting potential value opportunity according to InvestingPro analysis. The pizza chain, which opened its 6,000th store during the fiscal year, reported a global system-wide sales dip of approximately 8% for the quarter, attributed to an extra week of operations in the previous fiscal year. When adjusted for this factor, sales were roughly unchanged from the year-ago period. Despite recent challenges, InvestingPro data shows the company maintains strong fundamentals with a healthy gross profit margin of 31% and has consistently paid dividends for 12 consecutive years.
In North America, the company saw a 4% decline in comparable sales for the quarter, with a 2% decrease in both transaction and ticket sizes. North America's franchised restaurants experienced a similar 4% dip, while sales at company-owned outlets fell by 6%. Conversely, international markets showed a 2% increase in comparable sales.
For the full fiscal year, Papa John's global sales reached about $4.9 billion, representing a 3% year-over-year decrease, which narrows to 1% when excluding the impact of the additional week in the previous fiscal year. North American comparable sales fell 4% for the year, with transactions down 3% and ticket sizes reduced by 1%. International sales saw a less than 1% drop.
The company added a total of 122 new restaurants in the fourth quarter, with 60 in North America and 62 internationally. The full-year figures stood at 124 net new restaurants, with North America contributing 81 and international openings accounting for 43.
These preliminary results are subject to year-end accounting adjustments, and Papa John's plans to release its final financial and operating results for the fourth quarter and fiscal year before the market opens on February 27, 2025. Trading at a P/E ratio of 12.5 and showing positive earnings yield of 10%, the company appears positioned for potential recovery. For deeper insights into Papa John's valuation and growth prospects, investors can access comprehensive analysis through InvestingPro, which features over 30 additional financial metrics and exclusive ProTips.
The company's President and CEO, Todd Penegor, expressed satisfaction with the transaction trends and new restaurant openings, highlighting the franchisees' confidence in the brand and growth opportunities. Penegor emphasized the company's commitment to quality and customer engagement as key drivers of these trends.
Papa John's will participate in the 2025 ICR Conference on January 13 and 14, with a fireside chat scheduled for the morning of January 14, which will be webcast live on the company's investor relations website.
The results are based on a press release statement from Papa John's International, Inc. and reflect the company's performance and strategic outlook as it continues to expand its global footprint.
In other recent news, Papa John's has been the subject of various analyst assessments following its Q3 earnings report. Stephens maintained its Overweight rating on Papa John's, highlighting the new CEO's growth strategy for FY25, while Deutsche Bank (ETR:DBKGn) maintained a Hold rating, expressing a cautious growth outlook. BTIG also held a neutral stance due to concerns over franchisee health and long-standing structural challenges. KeyBanc downgraded Papa John's due to concerns about the company's path to recovery.
The pizza chain reported a 3% decrease in global system-wide sales, standing at $1.2 billion. North American comparable sales declined by 6%. Total (EPA:TTEF) revenues were reported at $507 million, a 3% decrease from the previous year, and adjusted operating income for Q3 stood at $29 million, down $4 million year-over-year.
These recent developments underscore Papa John's commitment to refining its operational strategies, improving its loyalty program, and balancing premium and value offerings. The company plans to open over 100 new restaurants in North America and expects international openings to exceed 170. Adjusted operating income for the full year is anticipated to be between $135 million to $150 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.