NASDAQ$PZZA

Papa John's International Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Papa John's reported record global system-wide restaurant sales, launched a new menu innovation, and reaffirmed its long-term development target.

Papa John's Q1 2023 saw record global system-wide restaurant sales, driven by menu innovation and operational efficiencies. North America comparable sales were flat, while international comparable sales declined. The company reaffirmed its long-term development target of 1,400 to 1,800 net new units between 2022 and 2025. Total revenues decreased slightly, but diluted earnings per share increased.

  • North America comparable sales were flat, with 3% growth in Domestic Company-owned Restaurants.
  • International comparable sales decreased by 6% due to economic pressure in the UK.
  • Global system-wide restaurant sales increased by 2% to $1.24 billion.
  • Diluted earnings per share increased to $0.65, while adjusted diluted earnings per share decreased to $0.68.

Headline financials

Total Revenue

$527M

Previous: $543M-2.9%
EPS (adj)

$0.68

Previous: $0.95-28.4%
Domestic Comp Sales Growth

3.4%

Previous: -1.2%+383.3%
NA Franchised Comp Growth

-0.8%

Previous: 2.8%-128.6%
International Comp Growth

-5.8%

Previous: 0.8%-825.0%
Total Comp Sales Growth

-1.3%

Previous: 1.6%-181.3%
Global System-wide Growth

2.0%

Previous: 5.3%-62.3%
Capital Expenditures

-$18.4M

Previous: -$10.2M-79.9%
Free Cash Flow

$3.97M

Previous: $261K+1419.5%
Net Income

$22.4M

Previous: $10.5M+113.2%
Operating Income

$37.8M

Previous: $14.4M+161.8%
Gross Profit

$2.9M

Previous: $543M-99.5%
Cash & Equivalents

$46.7M

Previous: $80.7M-42.1%
Total Assets

$865M

Previous: $886M-2.3%
Stock-Based Comp

$3.9M

Previous: $4.18M-6.7%

Revenue & EPS history

Papa John's · Revenue · Quarterly

$527M

Q1 2023-2.9%vs Q1 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Papa John's · $460M total across 4 segments · Q1 2023

  • North America Commissaries
    $213M+1.4%
  • Domestic Company-owned
    $180M-9.5%
  • North America Franchising
    $36.1M+5.3%
  • International
    $31.5M-9.1%

Forward guidance

Papa John's is on track to achieve 270 to 310 net new units in 2023 and reaffirmed its long-term development target of 1,400 to 1,800 net new units between 2022 and 2025.

Tailwinds

  • Menu innovation is performing strongly.
  • Company operations are showing continued strength.
  • Corporate-owned restaurants are delivering significant improvements in out-the-door times.
  • Customer satisfaction is increasing.
  • Operational efficiencies and profitability are improving.

Headwinds

  • Continued wage inflation is impacting profitability.
  • International comparable sales were down 6% primarily due to continued economic pressure in the UK.
  • Total revenues were down 3% from a record first quarter a year ago.
  • Adjusted diluted earnings per common share decreased from the prior year.
  • Higher costs in 2023 resulted from commodity and wage inflation and reduced International operating income primarily in the UK.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.9%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+0.6%

Avg return

30 days after

60%

44 / 73 earnings

Positive

+17.6%

Q1 2012

Best reaction

-17.2%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.7%+0.9%-5.6%
Q4 2025-8.6%-5.4%-6.1%
Q3 2025+3.7%+2.4%-0.2%
Q1 2025+15.9%+24.5%+49.9%
Q4 2024+1.4%+0.8%-13.8%
Q3 2024-5.4%-12.4%-16.3%
Q2 2024+5.6%+9.2%+10.4%
Q1 2024-6.7%-8.0%-17.7%
Q4 2023-0.3%+0.8%-5.1%
Q3 2023+4.2%+3.6%+3.7%
Q2 2023-0.6%+0.2%-5.5%
Q1 2023+3.1%+3.3%-4.6%
Q4 2022-7.3%-9.1%-17.4%
Q3 2022+2.7%+3.9%+13.1%
Q2 2022-5.0%-6.2%-18.1%
Q1 2022-5.8%-7.2%-5.3%
Q4 2021+0.6%+2.2%-5.8%
Q3 2021+7.3%+7.1%+0.8%
Q2 2021+4.1%+4.4%+13.3%
Q1 2021+5.7%+3.2%+0.8%
Q4 2020-12.1%-12.1%-13.9%
Q3 2020+9.7%+4.7%+6.2%
Q2 2020-1.0%-5.5%-8.8%
Q1 2020+6.1%+9.1%+3.8%
Q4 2019-13.6%+6.0%+45.0%
Q3 2019+9.4%+9.5%+5.7%
Q2 2019+3.6%+7.7%+15.7%
Q1 2019-2.3%-1.9%-5.4%
Q4 2018+2.1%+3.5%+24.1%
Q3 2018+3.4%+1.3%-16.0%
Q2 2018-8.0%-4.9%+9.1%
Q1 2018-4.3%-11.1%-12.2%
Q4 2017+0.8%+5.9%+0.1%
Q3 2017-7.1%-8.3%-12.8%
Q2 2017+9.3%+7.9%+4.9%
Q1 2017+0.7%+3.2%+4.2%
Q4 2016-7.5%-8.5%-13.6%
Q3 2016+4.0%+2.7%+15.7%
Q2 2016+4.3%+1.8%+1.3%
Q1 2016+4.4%
Q4 2015+12.3%
Q3 2015-17.2%
Q2 2015-6.4%
Q1 2015+2.4%
Q4 2014-1.8%
Q3 2014+7.1%
Q2 2014-4.9%
Q1 2014-2.9%
Q4 2013+7.2%
Q3 2013+0.5%
Q2 2013+3.8%
Q1 2013+1.9%
Q4 2012-8.1%
Q3 2012-5.4%
Q2 2012+1.7%
Q1 2012+17.6%
Q4 2011-7.0%
Q3 2011+6.6%
Q2 2011-1.5%
Q1 2011-0.8%
Q4 2010+0.5%
Q3 2010-2.6%
Q2 2010-5.5%
Q1 2010+2.1%
Q4 2007+7.3%
Q4 2009+7.3%
Q3 2008+0.7%
Q3 2009+0.7%
Q2 2009+7.0%
Q1 2008+6.8%
Q4 2008+6.8%
Q2 2008+6.8%
Q1 2009+6.8%

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