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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$454.84 mln

$459.48 mln (13 Analysts)

Q3 Adjusted EPS

Miss

$0.16

$0.17 (13 Analysts)

Q3 EPS

$0.09

Q3 Net Income

$3.28 mln


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.)

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