04:19 PM EDT, 05/10/2024 (MT Newswires) -- Papa John's International's (PZZA) mixed fiscal Q1 results reflected increasing pressures from tighter consumer spending, prompting the company to issue a cautious commentary on its 2024 outlook, UBS said in a report sent Friday.

The company lowered its 2024 guidance to reflect ongoing macro headwinds, including for North American same-store sales,

according to the UBS report issued after an earnings call on Thursday.

Still, the company underscored plans to improve North America sales and strengthen unit growth, it said.

"Development focus is on a [North America] acceleration, with a 20% increase over the 57 net opens in [2023] still targeted. [North America] development is supported by solid franchisee incentive uptake and a focus on lowering new build costs and strengthening returns," UBS said.

UBS lowered its price target for Papa John's to $58 from $80, but maintained its neutral rating.

"We believe risk/reward is balanced as macro pressures and international headwinds remain a risk, with potential upside catalysts from: an positive inflection in US sales trends, accelerating global unit growth, permanent CEO announcement, and updated long-term guidance," UBS said.