NASDAQ$PZZA

Papa John's International Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Papa John's Q1 2024 financial results were announced, reflecting a challenging environment with decreased North America and International comparable sales, but showing improved restaurant-level margins and operating profits.

Papa John's Q1 2024 results showed a decrease in North America and International comparable sales. Total revenues decreased by 2% to $514 million, while operating income decreased by 11% to $34 million. Despite these challenges, the company improved restaurant-level margins and increased adjusted operating income by 10% through cost discipline.

  • North America comparable sales decreased by 2% due to declines in both company-owned and franchised restaurants.
  • International comparable sales decreased by 3%.
  • Global system-wide restaurant sales decreased by 1% to $1.23 billion, impacted by the shift of a high-volume week between Christmas and New Years into Q4.
  • Total revenues decreased by 2% to $514 million, primarily due to lower North America commissary revenues from commodity price declines.

Headline financials

Total Revenue

$514M

Previous: $527M-2.5%
EPS

$0.44

Previous: $0.68-35.3%
Domestic Comp Sales Growth

-3.0%

Previous: 3.4%-188.2%
NA Franchised Comp Growth

-1.5%

Previous: -0.8%-87.5%
NA Comp Sales Growth

-1.8%

No prior period
International Comp Growth

-2.6%

Previous: -5.8%+55.2%
Global System-wide Growth

-0.9%

Previous: 2.0%-145.0%
Capital Expenditures

-$13.1M

Previous: -$18.4M+29.1%
Free Cash Flow

$1.58M

Previous: $3.97M-60.2%
Net Income

$14.6M

Previous: $22.4M-34.6%
Operating Income

$33.7M

Previous: $37.8M-10.8%
Gross Profit

$2.3M

Previous: $2.9M-20.7%
Cash & Equivalents

$27.8M

Previous: $46.7M-40.5%
Total Assets

$847M

Previous: $865M-2.0%
Stock-Based Comp

-$370K

Previous: $3.9M-109.5%

Revenue & EPS history

Papa John's · Revenue · Quarterly

$514M

Q1 2024-2.5%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Papa John's · $460M total across 4 segments · Q3 2023

  • North America Commissaries
    $205M-5.2%
  • Domestic Company-owned
    $177M+6.7%
  • International
    $42.9M+39.7%
  • North America Franchising
    $35M+3.9%

Forward guidance

The company is focused on improving restaurant operations, digital solutions, and marketing platforms to drive sustainable, profitable growth. They aim to increase franchisee profitability and are confident in their consumer-centric approach.

Tailwinds

  • Improving restaurant-level margins.
  • Increasing operating profits.
  • Making meaningful progress on Back to Better 2.0 initiatives.
  • Making meaningful progress on International Transformation initiatives.
  • Consumer-centric focus.

Headwinds

  • Challenging environment in the first quarter.
  • Decreased North America comparable sales.
  • Decreased International comparable sales.
  • Global system-wide restaurant sales decreased.
  • Lower North America commissary revenues due to commodity price declines.

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 2024

Historical avgQ1 2024

+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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