Papa John's Q3 revenue misses analyst estimates on weak US market, cuts FY foreast

Papa Johns International

06/11/2025 12:11

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/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$508.15 mln
$523.79 mln (15 Analysts)
Q3 Adjusted EPS
Miss
$0.32
$0.41 (16 Analysts)
Q3 EPS
$0.13
Q3 Net Income
$4.47 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: ID:nBw3bsw06a

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(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.)