Papa John’s International (NASDAQ:PZZA) Issues Quarterly Earnings Results

27 Feb 2026, 17:46 by Michael Walen · The Markets Daily

Papa John’s International (NASDAQ:PZZA – Get Free Report) released its earnings results on Thursday. The company reported $0.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.33 by $0.01, FiscalAI reports. The company had revenue of $498.18 million for the quarter, compared to the consensus estimate of $517.25 million. Papa John’s International had a net margin of 1.79% and a negative return on equity of 13.54%. The company’s revenue was down 6.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.63 EPS.

Here are the key takeaways from Papa John’s International’s conference call:

Management reported meaningful progress on brand health and value perception, with Papa Rewards nearing 41 million members and Papa Dough redemptions rising from 24% to 48%, driving higher loyalty order frequency and utilization.
Product innovation is gaining traction — the newly launched Pan Pizza is performing above expectations and tests of oven‑toasted sandwiches and a protein‑crust pizza are generating promising early results and incremental non‑pizza sales.
Technology upgrades are underway (new unified app with ~40% faster response and +70 bps conversion, planned PAR POS rollout, and deeper Google Cloud integration) to improve digital ordering, restaurant operations, and personalization.
Management expects at least $60 million of North American supply‑chain savings (with $20–25M realized by end of 2026) and $25 million of corporate cost reductions by 2027, targeting roughly 160 basis points of Four‑Wall EBITDA improvement by 2028.
Near‑term pressure: 2026 guidance assumes North America comps down 2%–4%, ~200 restaurant closures in 2026 (≈300 identified by end of 2027), one‑time restructuring charges of $16–23M, and consolidated adjusted EBITDA guidance of $200–210M.

Papa John’s International Trading Down 1.8%

NASDAQ:PZZA traded down $0.56 on Friday, hitting $30.35. The company’s stock had a trading volume of 1,088,073 shares, compared to its average volume of 1,153,399. Papa John’s International has a one year low of $30.16 and a one year high of $55.74. The firm has a market capitalization of $995.01 million, a P/E ratio of 27.07, a price-to-earnings-growth ratio of 2.77 and a beta of 1.20. The stock has a fifty day moving average of $36.19 and a two-hundred day moving average of $42.50.

Papa John’s International Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 20th. Shareholders of record on Monday, February 9th were paid a $0.46 dividend. The ex-dividend date was Monday, February 9th. This represents a $1.84 annualized dividend and a yield of 6.1%. Papa John’s International’s dividend payout ratio is currently 164.29%.

Key Headlines Impacting Papa John’s International

Here are the key news stories impacting Papa John’s International this week:

Positive Sentiment: Papa John’s is targeting $60M in supply‑chain savings and accelerating a transformation that management says will improve margins over time; this cost program supports longer‑term profitability. Papa John’s targets $60M in supply chain savings and 200 North America closures as transformation accelerates
Positive Sentiment: International growth and cash‑flow trends look constructive: management added 101 international stores in Q4 and reported nearly doubled free cash flow in 2025, which supports EPS recovery in 2026 under management guidance. Papa John’s: Setting Up For A Swing Trade
Positive Sentiment: Stephens left an Overweight rating on PZZA despite cutting its target to $40, implying meaningful upside from current levels and signaling some analyst conviction in the turnaround story. Stephens lowers price target to $40 but keeps overweight
Positive Sentiment: Value investors may view PZZA as attractive per Zacks’ style scores, which highlights the stock’s valuation traits for long‑term buyers. Why Papa John’s (PZZA) is a Top Value Stock for the Long-Term
Neutral Sentiment: Q4 results were mixed: EPS beat by a penny ($0.34 vs. $0.33) but revenue missed estimates and fell year‑over‑year, leaving investors to weigh the small beat against weakening top‑line trends. Papa John’s (PZZA) Q4 Earnings Top Estimates
Negative Sentiment: Management announced large‑scale closures (reports cite ~200–300 North American and hundreds of underperforming U.S. shops), which should reduce costs long‑term but will depress near‑term revenue and investor sentiment. Papa John’s to close 300 underperforming locations. What to know
Negative Sentiment: Analysts have trimmed targets amid the challenging consumer backdrop (Mizuho and others reduced targets/ratings), increasing short‑term downside risk if comps don’t stabilize. Mizuho Cuts Papa John’s (PZZA) Target
Negative Sentiment: Coverage and headlines emphasize soft North American demand and promotional pressure, which drove the share selloff after the print. Papa John’s slides after soft results in North America amid a tough consumer backdrop

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. Zacks Research raised shares of Papa John’s International from a “strong sell” rating to a “hold” rating in a research note on Monday, January 26th. Stephens cut their target price on shares of Papa John’s International from $49.00 to $40.00 and set an “overweight” rating on the stock in a report on Friday. Weiss Ratings reissued a “hold (c-)” rating on shares of Papa John’s International in a report on Monday, December 29th. Mizuho lowered their price objective on shares of Papa John’s International from $40.00 to $34.00 and set a “neutral” rating for the company in a research report on Friday, February 20th. Finally, UBS Group reaffirmed a “neutral” rating and set a $42.00 price objective on shares of Papa John’s International in a research note on Monday, November 10th. Four investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, Papa John’s International presently has an average rating of “Hold” and a consensus target price of $47.78.

Check Out Our Latest Research Report on PZZA

Institutional Trading of Papa John’s International

Hedge funds and other institutional investors have recently modified their holdings of the stock. Earnest Partners LLC grew its holdings in Papa John’s International by 19.6% in the 4th quarter. Earnest Partners LLC now owns 1,947,248 shares of the company’s stock valued at $74,950,000 after buying an additional 318,816 shares in the last quarter. Bank of America Corp DE boosted its position in shares of Papa John’s International by 10.5% in the second quarter. Bank of America Corp DE now owns 1,700,062 shares of the company’s stock valued at $83,201,000 after acquiring an additional 161,906 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in shares of Papa John’s International by 2.0% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,108,612 shares of the company’s stock valued at $53,380,000 after acquiring an additional 21,742 shares in the last quarter. Sei Investments Co. grew its stake in shares of Papa John’s International by 3.1% in the third quarter. Sei Investments Co. now owns 874,431 shares of the company’s stock valued at $42,104,000 after acquiring an additional 26,190 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its position in Papa John’s International by 6.7% during the third quarter. Dimensional Fund Advisors LP now owns 588,554 shares of the company’s stock worth $28,338,000 after acquiring an additional 37,089 shares during the period.

About Papa John’s International

(Get Free Report)

Papa John’s International, Inc is a leading American pizza restaurant chain known for its focus on high-quality ingredients and consistent product offerings. Founded in 1984 by John Schnatter in Jeffersonville, Indiana, the company has grown to operate thousands of restaurants across the United States and in more than 40 international markets. Papa John’s restaurants are primarily franchised, supported by a network of corporate-owned outlets that together drive brand standards, operational guidance and marketing efforts.

The core menu at Papa John’s centers on a variety of hand-tossed and pan pizzas made with a signature stone-baked crust and topped with real cheese, vine-ripened tomato sauce and premium meats and vegetables.