Overview

* Papa John's Q3 revenue flat yr/yr, missing analyst expectations

* Adjusted EPS for Q3 misses analyst estimates

* North America comparable sales down 3%, international sales up 7%

Outlook

* Company revises 2025 system-wide sales growth to 1% to 2% vs 2% to 2.5% earlier

* North America comparable sales expected to decline 2% to 2.5% vs flat to up 2% earlier

* International comparable sales forecasted to rise 5% to 6%

* Adjusted EBITDA guidance lowered to $190 mln to $200 mln

* Depreciation and amortization expenses projected at $80 mln to $95 mln

Result Drivers

* INTERNATIONAL GROWTH - International comparable sales increased 7% driven by strong performance in international markets

* NORTH AMERICA DECLINE - North America comparable sales decreased 3% due to softer consumer sentiment and competitive promotional environment

* COST SAVINGS - Identified $25 mln in G&A savings and $50 mln in supply chain savings to improve profitability

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $508.15 $523.79

Revenue mln mln (15

Analysts

)

Q3 Miss $0.32 $0.41

Adjusted (16

EPS Analysts

)

Q3 EPS $0.13

Q3 Net $4.47

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 10 "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 $50.00, about 17.5% above its November 5 closing price of $41.26

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(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.)