Papa John’s (PZZA) posted better-than-expected sales but missed earnings estimates for its second quarter.
Here were the numbers for Papa John’s second quarter, compared to Bloomberg-compiled estimates:
Revenue: $399.6 million vs. $394.5 million expected
Adj. earnings per share: 28 cents vs. 30 cents expected
U.S. same-store sales: -6.8% vs. -6.8% expected
The pizza chain reaffirmed its full-year adjusted earnings per share outlook and expects to earn between $1.00 to $1.20 per share. Estimates among analysts were for adjusted earnings of $1.14 per share for the full year.
“Papa John’s made strong progress in the key pillars of its strategy in the second quarter, recording another sequential improvement in comparable sales,” CEO Steve Ritchie said in a statement. “The table is now set as we begin rolling out our new marketing campaigns and menu items in the second half of the year.”
Papa John’s second-quarter results follow stronger-than-expected first quarter results in early May. Papa John’s has been in the midst of a serious turnaround plan after founder and former CEO John Schnatter drove the pizza brand’s image into the ground after spewing multiple controversial comments. Schnatter resigned as CEO in December 2017, then resigned as chairman July 2018 and officially exited the board in March 2019.
Since then, Papa John’s has been furiously trying to boost sales and regain lost customers in a fiercely competitive fast-food environment. Beloved NBA star Shaquille O’Neal was appointed to Papa John’s board at the end of March, and since then, management has expressed its devotion to rebuilding a damaged image and brand.
Furthermore, investors will be focused on additional commentary from management about third-party delivery services and their increased industry disruption. Domino’s Pizza’s (DPZ) management said that third-party aggregators had a negative impact on second-quarter sales and doesn’t see the threat easing in the future. Companies such as DoorDash, Uber Eats (UBER), Postmates and Grubhub (GRUB) have been aggressively expanding operations, and as a result, have been threatening companies with their own delivery services such as Papa John’s and Domino’s Pizza.
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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