Please ensure Javascript is enabled for purposes of website accessibility

Papa John's Demand Spike Extends Into August

By Demitri Kalogeropoulos - Updated Aug 25, 2020 at 10:18AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Consumers aren't moving away from its pizza offerings even as economies reopen around the world.

Papa John's International's (PZZA 3.12%) business is still enjoying a strong sales lift from pandemic-related consumer shopping changes. The pizza delivery specialist said on Tuesday that comparable-stores sales were up 24% from late July through Aug. 23. That result marked only a slight deceleration in its U.S. market compared to the prior month while the international segment sped up.

Management described the global surge as an outgrowth of the chain's popular new menu introductions, along with its latest improvements to the ordering and delivery services.

As opposed to simply a pandemic-fueled jump, that factor implies persistent gains even as the COVID-19 threat lessens over the coming quarters. "As we have added customers throughout 2020," CEO Rob Lynch said in a press release, "our customer satisfaction and brand affinity scores also continue rising."

A delivered pizza.

Image source: Getty Images.

Papa John's will need to rely on that improving shopper affinity as it faces intensifying competition from fast-food and casual-dining restaurants and from delivery focused peers like Domino's Pizza. All these rivals are fighting to establish and maintain market share in the context of quickly shifting consumer trends. At least through late August, Papa John's seems to be holding its own in that challenging selling environment.

Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool recommends Domino's Pizza. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Papa John's International, Inc. Stock Quote
Papa John's International, Inc.
$92.89 (3.12%) $2.81

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/14/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.