Papa Johns Serves Up Guidance

According to, “Shares of Papa John’s International (PZZA) are surging more than 9% following Monday afternoon’s announcement that next year’s earnings per share will range from $1.70 to $1.90. Current analysts’ estimates had the company pegged to deliver $1.74 per share, so this news is seen as a positive to investors. Management said that they have considered potentially volatile cheese prices in the coming year, which will certainly have an effect on profitability. Furthermore, the projections assume domestic same store sales growth of between 1% and negative 1% for next fiscal year. Valuation is pretty attractive, as the stock closed at $21.65 on Monday and if Papa John’s is able to hit the midpoint of this guidance the forward looking P/E would be a very reasonable 12x.”