NASDAQ$PZZA
Papa John's International Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Papa John's financial performance reflected solid system-wide restaurant sales growth, transaction-led North America comp growth, and improving North America restaurant-level margin.
Papa John's International, Inc. announced financial results for the third quarter ended September 24, 2023. Key highlights include a 3% increase in North America comparable sales, driven by transaction growth at Domestic Company-owned restaurants and North America franchised restaurants. Global system-wide restaurant sales reached $1.23 billion, a 5% increase from the prior year. Total revenues were $523 million, up 2% from the third quarter a year ago. Operating income increased 64% to $32 million, and diluted earnings per share was $0.48.
- North America comparable sales increased by 3% compared to the third quarter of 2022, driven by transaction growth.
- Global system-wide restaurant sales grew by 5% year-over-year, reaching $1.23 billion.
- Total revenues increased by 2% to $523 million, driven by higher Domestic Company-owned restaurant sales and International revenues.
- Operating income increased by 64% to $32 million, reflecting improved North America comparable sales and operational efficiency.
Headline financials
Revenue & EPS history
Papa John's · Revenue · Quarterly
$523M
Revenue by segment
Papa John's · $460M total across 4 segments · Q3 2023
- North America Commissaries$205M-5.2%44.5%
- Domestic Company-owned$177M+6.7%38.5%
- International$42.9M+39.7%9.3%
- North America Franchising$35M+3.9%7.6%
Forward guidance
Papa John's is increasing its fixed operating margin by 100 basis points in each of the next four years, from 4% in 2023 to 8% in 2027 and will be offering new opportunities for franchisees to earn annual incentive-based rebates as they increase volume and open new restaurants.
Tailwinds
- Menu innovation
- Revenue management enhancements
- Continued growth in our third-party aggregator channel contributed to our year-over-year sales growth this quarter.
- Strong execution by our teams and franchisees led to solid system-wide restaurant sales growth
- Ability to grow transactions in an ongoing challenging environment, while maintaining average ticket, confirms the strong consumer demand for our product offerings.
Headwinds
- Dilutive impact of recently acquired restaurants in the UK
- Higher variable compensation expense
- Employee benefit costs
- Depreciation expense compared with a year ago
- Lower North America commissary revenues, a result of decreased commodity prices in 2023 compared with 2022
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 Q3 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
| Quarter | Report date | Reaction (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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