Overview

* Papa John's Q2 revenue rises 4% yr/yr, beating analyst expectations

* Adjusted EPS for Q2 beats consensus, despite net income decline

* International comparable sales up 4%, driven by transaction gains

Outlook

* Papa John's raises 2025 international comparable sales outlook to 2%-4% (previously flat to up 2%)

* Company expects system-wide sales growth of 2%-5% in 2025

* Papa John's projects North America comparable sales flat to up 2%

* Company anticipates 2025 adjusted EBITDA between $200 mln and $220 mln

Result Drivers

* COMMISSARY REVENUES - Higher volumes and pricing drove a $20.3 mln increase in commissary revenues

* INTERNATIONAL SALES - Comparable sales rose 4% due to transaction gains and focus on core pizza business

* G&A EXPENSES - Increased marketing and loyalty program investments contributed to higher G&A expenses

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $529.17 $516.10

Revenue mln mln (12

Analysts

)

Q2 Beat $0.41 $0.33

Adjusted (14

EPS Analysts

)

Q2 EPS $0.28

Q2 Net $9.67

Income mln

Q2 $24.49

Operatin bln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy"

* Wall Street's median 12-month price target for Papa John's International Inc is $47.50, about 14.7% above its August 6 closing price of $40.52

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)