Papa John's International
The 10-second takeaway
For the quarter ended Sep. 23 (Q3), Papa John's International met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Margins grew across the board.
Papa John's International logged revenue of $325.5 million. The four analysts polled by S&P Capital IQ expected a top line of $324.0 million on the same basis. GAAP reported sales were 6.5% higher than the prior-year quarter's $305.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.55. The four earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS of $0.55 for Q3 were 25% higher than the prior-year quarter's $0.44 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.7%, 50 basis points better than the prior-year quarter. Operating margin was 6.5%, 100 basis points better than the prior-year quarter. Net margin was 4.0%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $349.0 million. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $1.32 billion. The average EPS estimate is $2.59.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 190 members out of 233 rating the stock outperform, and 43 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give Papa John's International a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Papa John's International is hold, with an average price target of $55.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Papa John's International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.