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Papa John's (PZZA) Q1 Revenues Beat Estimates, Increase Y/Y

Papa John’s International, Inc. PZZA reported robust first-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Moreover. the metrics improved on a year-over-year basis. Following the results, shares of the company moved up 7.3% during trading hours on May 6.

Earnings & Revenues Discussion

During fiscal first quarter, the company reported adjusted earnings of 90 cents per share that surpassed the Zacks Consensus Estimate of 56 cents by 60.7%. Moreover, the bottom line surged 500% from 15 cents reported in the prior-year quarter.

Quarterly revenues of $511.7 million beat the consensus mark of $476 million by 7.6%. Moreover, the top line increased 24.9% on a year-over-year basis. The upside can be attributed to strong comparable sales in North America as well as sales from system-wide international restaurants, higher franchise royalties and commissary revenues.

Papa Johns International, Inc. Price, Consensus and EPS Surprise

 

Papa Johns International, Inc. price-consensus-eps-surprise-chart | Papa Johns International, Inc. Quote

 

Global Restaurant Sales & Comps

In the fiscal first quarter, global restaurant sales (excluding foreign currency impact) rose 26.6% compared with 5.4% growth reported in the prior-year quarter.

Domestic company-owned restaurant comps in the reported quarter increased 23.3% year over year compared with 6.1% growth in the year-ago quarter.

At North America franchised restaurants, comps rose 27.1% year over year compared with 5.1% growth in the year-ago quarter. Also, comps at system-wide North America restaurants increased 26.2% year over year compared with 5.3% growth in the year-ago quarter.

Comps at system-wide international restaurants were up 23.2% year over year compared with 2.3% growth in the prior-year quarter.

Operating Highlights

Adjusted operating income in the fiscal first quarter came in at $50.7 million compared with $15.5 million in the year-ago quarter. Total costs and expenses amounted to $464.9 million, up 17.9% from the prior-year quarter’s level.

Balance Sheet

As of Mar 28, 2021, cash and cash equivalents totaled $171.3 million compared with $130.2 million as on Dec 27, 2020. At the end of fiscal first quarter, long-term debt (less current portion) stood at $328.5 million compared with $328.3 million at the end of fourth-quarter fiscal 2020.

Inventories as of Mar 28, 2021, came in at $27.6 million compared with $30.3 million on Dec 27, 2020. Free cash flow during the fiscal first quarter totaled $52.7 million compared with $24.4 million in the year-ago quarter.

The company paid out common and preferred stock dividends worth $10.8 million in the first-quarter fiscal 2021 and announced second-quarter fiscal 2021 dividends of approximately $10.9 million. The fiscal second-quarter dividends were paid out to the common shareholders on May 21, 2021, while the preferred dividends will be paid on Jul 1, 2021.

Unit Developments

During the fiscal first quarter, Papa John’s opened 12 new restaurants in North America and exited 3. In international markets, the company opened 68 new restaurants and exited 9. As of Mar 28, the company had a global restaurant count of 5,468, thereby operating in 50 countries and territories worldwide.

Meanwhile, the company had approximately 1,650 restaurants (250 units in North America and 1,400 units internationally) in the development pipeline. Majority of the restaurants are scheduled to open over the next six years.

Zacks Rank & Peer Releases

Papa John’s currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Yum! Brands, Inc. YUM reported strong first-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both the metrics increased year over year. The company’s adjusted earnings of $1.07 beat the Zacks Consensus Estimate of 85 cents. In the prior-year quarter, the company had reported adjusted earnings of 64 cents. Quarterly revenues of $1,486 million surpassed the consensus estimate of $1,461 million. The top line also rose 17.7% year over year. The upside can be attributed to increase in sales along with rise in franchise and property revenues.

McDonald's Corporation MCD reported first-quarter 2021 results, with earnings and revenues outpacing the Zacks Consensus Estimate. The company reported adjusted earnings of $1.92 per share, which surpassed the Zacks Consensus Estimate of $1.81. Moreover, the bottom line rose 31% year over year. Quarterly revenues of $5,124.6 million beat the Zacks Consensus Estimate of $5,047 million. Moreover, the figure rose 9% year over year. The top line benefited from increase in global comparable sales.

Starbucks Corporation SBUX reported second-quarter fiscal 2021 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The company reported adjusted EPS of 62 cents, which beat the Zacks Consensus Estimate of 52 cents. In the prior-year quarter, the company had reported adjusted EPS of 32 cents. Meanwhile, quarterly revenues of $6,668 million missed the Zacks Consensus Estimate of $6,803 million. However, the top line increased 11.2% from the year-ago quarter’s levels. The uptick was driven by growth in comparable store sales, partially offset by the unfavorable impact of Global Coffee Alliance transition-related activities.

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Starbucks Corporation (SBUX): Free Stock Analysis Report
 
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