Papa John's Q3 revenue falls 10.5%, misses estimates

Overview

• U.S. pizza chain's Q3 revenue fell 10.5% yr/yr, missing analyst expectations

• Adjusted EPS for Q3 dropped by half and missed analyst expectations

• Company cites refranchising and lower North America sales as main reasons for revenue decline

Outlook

• Papa John's expects 2026 global system-wide restaurant sales to decline about 5% from 2%-4% previously

• Company forecasts 2026 North America comparable sales to decline around 8%

• Papa John's expects 2026 international comparable sales to be flat to up 1%

Result Drivers

• REFRANCHISING IMPACT - Co said revenue decline was mainly due to refranchising of 113 restaurants and lower comparable sales at Domestic Company-owned restaurants

• LOWER VOLUMES - Co attributed decrease in North America Commissary revenues to lower volumes

• FRANCHISE SALES DROP - Co said lower comparable sales at North America franchised restaurants reduced franchising revenues

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 10 "hold" and 1 "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 $26.00, about 30.1% above its November 4 closing price of $19.99

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• Nov 4 - Applebee's owner Dine Brands beats Q3 sales estimates on value, menu innovation

• Nov 3 - Yum Brands tops Q3 adjusted EPS estimates

• Nov 4 - McDonald's Q3 revenue misses estimates on weaker US comparable sales

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)