NASDAQ$PZZA

Papa John's International Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Papa John's reported a solid Q4 2023, achieving record system-wide sales for the year and marking the fourth consecutive year of positive North America comparable restaurant sales.

Papa John's International, Inc. announced financial results for the fourth quarter and year ended December 31, 2023. The company reported a rise in total revenues from $526.23 million to $571.32 million. Diluted earnings per common share increased to $0.79, up from $0.66 in the fourth quarter of 2022, and adjusted diluted earnings per common share was $0.91, up from $0.71 a year ago.

  • North America comparable sales were up 2% compared with the fourth quarter of 2022, driven by transaction and ticket growth at both Domestic Company-owned and North America franchised restaurants.
  • International comparable sales were down 6%.
  • 89 net unit openings driven by 36 North America and 53 International net unit openings.
  • Global system-wide restaurant sales were $1.34 billion, an 11% increase from the prior year fourth quarter.

Headline financials

Total Revenue

$571M

Previous: $526M+8.6%
EPS (adj)

$0.91

Previous: $0.71+28.2%
Domestic Comp Sales Growth

2.2%

Previous: 0.8%+175.0%
NA Franchised Comp Growth

1.7%

Previous: 1.1%+54.5%
NA Comp Sales Growth

1.8%

Previous: 1.1%+63.6%
International Comp Growth

-5.5%

Previous: -3.4%-61.8%
Total Comp Sales Growth

0.1%

Previous: 0.0%
Global System-wide Growth

11.0%

Previous: 2.8%+292.9%
NA System-wide Growth

11.2%

Previous: 2.6%+330.8%
Capital Expenditures

-$25.7M

Previous: $30M-185.8%
Net Income

$26.1M

Previous: $23.5M+11.0%
Operating Income

$42.6M

Previous: $36.2M+17.5%
Gross Profit

$98.5M

Previous: $99.1M-0.7%
Stock-Based Comp

$4.7M

Previous: $4.14M+13.5%

Revenue & EPS history

Papa John's · Revenue · Quarterly

$571M

Q4 2023+8.6%vs Q4 2022
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

Looking ahead, the company is focused on accelerating North America development and maintaining flexibility in a dynamic global environment to advance strategic initiatives.

Tailwinds

  • Focus on Back to Better 2.0 growth initiatives.
  • Accelerating North America development.
  • Building on progress in the UK market.
  • Strategic actions to drive improved profitability.
  • Strengthening the franchisee base.

Headwinds

  • Dynamic global environment may present challenges in the near term.
  • Potential risks related to deteriorating economic conditions.
  • Labor shortages at Company and/or franchised stores and quality control centers.
  • Increases in labor costs, commodity costs, or sustained higher other operating costs.
  • Increased risk of phishing, ransomware, and other cyber-attacks.

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 Q4 2023

Historical avgQ4 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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