Piper Sandler has adjusted its financial outlook for Papa John's International, Inc. (NASDAQ:PZZA), lowering the price target to $65.00 from the previous $75.00 while maintaining an Overweight rating on the stock.
The revision which came on Friday followed the company's release of its second-quarter 2024 financial results and subsequent earnings call.
The quarter proved challenging for the pizza chain, particularly in terms of sales. However, Papa John's successfully managed to shield its operating income amidst these difficulties. During the earnings call, the new CEO,
Todd Penegor, and CFO, Ravi Thanawala, spent considerable time outlining their strategies aimed at stabilizing and eventually growing North American same-store sales (SSS), along with improving unit economics to rekindle development.
The company reported a 3.6% decrease in North American SSS for the quarter and a year-to-date decline of approximately 6.0%. Despite these figures indicating a significant need for improvement, the earnings call provided investors with fresh insights into the company's direction under the guidance of its new leadership.
Papa John's leadership is focusing on turning around the North American business segment, which is crucial for the company's overall growth.
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