Latest news with #Penegor
Yahoo
5 days ago
- Business
- Yahoo
The 5 Most Interesting Analyst Questions From Papa John's's Q1 Earnings Call
Papa John's first quarter was met with a positive market response, reflecting management's efforts to improve value perception and customer experience. CEO Todd Penegor attributed the flat year-over-year sales to a disciplined focus on core pizza products and the brand's barbell pricing strategy, which balanced premium offerings with value-oriented options. Management pointed to sequential improvements in transaction counts and highlighted national promotions, like the Epic Stuffed Crust Pizza, as effective in driving higher pizza orders. Penegor noted, 'Our improved value proposition, optimized creative, and enhanced customer experience are driving improvements in sales and transactions as well as transaction share gains.' Is now the time to buy PZZA? Find out in our full research report (it's free). Revenue: $518.3 million vs analyst estimates of $515.1 million (flat year on year, 0.6% beat) Adjusted EPS: $0.36 vs analyst estimates of $0.35 (4.1% beat) Adjusted EBITDA: $45.88 million vs analyst estimates of $50.17 million (8.9% margin, 8.6% miss) EBITDA guidance for the full year is $210 million at the midpoint, above analyst estimates of $207.2 million Operating Margin: 4.6%, down from 6.6% in the same quarter last year Locations: 6,019 at quarter end, up from 5,914 in the same quarter last year Same-Store Sales fell 1.3% year on year, in line with the same quarter last year Market Capitalization: $1.59 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Brian Bittner (Oppenheimer) asked about sequential improvements in traffic and the outlook for consumer demand, to which CEO Todd Penegor explained that enhanced value perception and ongoing product innovation were driving transaction gains despite economic uncertainty. Andrew Strelzik (BMO Capital Markets) inquired about progress on key initiatives, with Penegor emphasizing advances in technology transformation, data-driven loyalty engagement, and a renewed focus on product quality and operational coaching. Eric Gonzalez (KeyBanc) questioned supply chain cost savings for franchisees. Penegor and CFO Ravi Thanawala responded that optimization efforts are underway, with anticipated margin improvements to be shared systemwide, though most benefits are expected from 2026 onward. Peter Saleh (BTIG) asked about the impact of quality messaging and the timing of oven calibration efforts. Penegor explained that highlighting unique dough ingredients would be a core marketing theme, and oven adjustments would support both product innovation and consistency later this year. Brian Mullan (Piper Sandler) sought details on store remodeling plans. Penegor shared that reimaging efforts are in early stages, with pilot programs underway and broader implementation expected to begin in 2026 to support carryout growth and brand revitalization. In upcoming quarters, the StockStory team will be monitoring (1) the impact of new product launches and menu innovation on transaction growth, (2) the effectiveness of increased marketing investment in driving brand perception and customer traffic, and (3) progress on operational efficiency initiatives, including supply chain optimization and oven recalibration. The pace of international market expansion and franchisee engagement will also remain important indicators of momentum. Papa John's currently trades at $48.52, up from $33.34 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
CNBC
10-06-2025
- Business
- CNBC
Cramer's Lightning Round: Papa John's is a 'wait and see situation'
Joby Aviation: "...Joby is good, and I'm going with it." Arm: "You're in good shape. That's Rene is a partner of Nvidia." Papa John's: "I think it's a wait and see situation with Papa John's. So, I'm not going there yet. I'm not saying yes." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest The CNBC Investing Club holds shares of Nvidia.
Miami Herald
07-06-2025
- Business
- Miami Herald
Papa Johns makes major menu change to win back customers
Over the past few months, consumers across the country have scaled back their spending on fast food, which has significantly impacted Papa Johns' sales. In Papa Johns' (PZZA) first-quarter earnings report for 2025, it revealed that its U.S. comparable sales declined by 3% year-over-year. Don't miss the move: Subscribe to TheStreet's free daily newsletter During an earnings call on May 8, Papa Johns CEO Todd Penegor said that the wallet of the consumer remains "challenged" and highlighted that increased competition is also impacting sales. Related: Papa Johns struggles to recover from concerning customer behavior "As we look at consumer confidence, it does remain challenged amid the economic and market volatility," said Penegor. "We're all talking about it. We all see it. We've seen intensification on competitive pressures in the promotional cycles. We've also seen some challenges on the lower-income cohorts." Consumers are specifically pulling away from having their food delivered and are instead opting to pick up their orders in stores to save money. In response to this trend, Papa Johns partnered with Google Cloud in April to "enhance" the ordering and delivery experience for its customers. "We know we can do delivery better," said Penegor. "And leveraging our new partnership with Google, we will improve driver dispatch and routing, increase the accuracy of our delivery time estimates, and provide better driver tracking." Image source: Bloomberg/Getty Images As Papa Johns fights to reverse alarming customer behavior, it has decided to shake up its menu in order to win back customers. The pizza chain decided that Shaq-a-Roni pizza, launched in 2020 for a limited time, will now become a permanent menu item, selling for $15.99 nationwide. The pizza is inspired by basketball player Shaquille O'Neal and became a fan-favorite five years ago due to its extra-large size. "At Papa Johns, we're elevating the classics that have set us apart to deliver even more value to our customers," said Chief Marketing Officer Jenna Bromberg in a press release. Related: Pizza Hut struggles to reverse troubling consumer trend In addition to making Shaq-a-Roni pizza a permanent menu item, Papa Johns recently introduced Cheddar Crust pizza to its menu, which starts at $11.99 and contains a baked blend of cheddar cheese and garlic seasoning on its crust. To pair with the pizza, the company also launched Cheddar Cheesticks, made from dough that is covered in garlic sauce and topped with seasoned cheddar cheese. They sell for $10.50 and are served with Papa Johns' original pizza dipping sauce. Both new menu items are available for a limited time. The menu changes from Papa Johns come after its competitors have also added new menu items to boost low sales. In March, Domino's Pizza added a Parmesan Stuffed Crust pizza to its menu after it reported weak sales during the fourth quarter of 2024. More Food + Dining: Domino's Pizza unveils generous deal amid alarming consumer trendSteak 'n Shake's beef tallow fries aren't as healthy as they appearThe Cheesecake Factory makes bittersweet changes to its menu In April, Pizza Hut also brought back Cheesy Bites Pizza, a fan-favorite menu item, for a limited time and introduced three new exclusive dipping sauces: Chipotle Ranch, Ultimate Ranch, and Pepperoni Ranch. The menu change occurred during a period when Pizza Hut's system sales in the U.S. decreased by 7% year-over-year. Many consumers have recently been avoiding fast-food restaurants due to their inflated prices, which have spiked by roughly 47% over the past decade. Data from Ipsos Consumer Tracker last year revealed that 34% of U.S. consumers have cut back on having dinner at fast-food restaurants. A total of 30% also said they have been avoiding getting dinner from takeout or delivery, while 45% said they are cooking dinner at home more. Related: Domino's Pizza suffers a startling loss as customers switch gears The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
