Papa John (PZZA) Fourth Quarter 2020 Outcomes Are Beneath Expectations

Signage in entrance of a Papa John’s Worldwide pizzeria in Louisville, Kentucky on Monday, February 22, 2021.

Luke Sharrett | Bloomberg | Getty Photographs

Papa John’s on Thursday reported quarterly outcomes that missed estimates as larger meals prices, a brand new headquarters and worker bonuses weighed on income regardless of robust demand for his pizza through the pandemic.

The corporate’s shares have fallen greater than 7% in pre-market buying and selling.

Here is what the corporate reported versus what Wall Avenue anticipated, primarily based on an analyst survey by Refinitiv:

  • Earnings per share: 40 cents adjusted vs. 46 cents anticipated
  • Income: $ 469.8 million vs. $ 467.9 million anticipated

The pizza chain reported fourth-quarter internet revenue of $ 13.2 million, or 28 cents per share, in contrast with a internet lack of $ 2.1 million, or 18 cents per share, a 12 months earlier.

It spent $ 6 million, or 12 cents a share, within the fourth quarter on its strategic reorganization, together with opening an workplace in Georgia. The corporate additionally paid $ 2.7 million in year-end bonuses to its restaurant staff, which is a discount of 6 cents per share. Rising uncooked materials prices additionally affected income within the quarter.

Excluding restructuring charges, Papa John’s gained 40 cents per share, lacking the 46 cents per share anticipated by analysts polled by Refinitiv.

Internet gross sales rose 12.5% ​​to $ 469.8 million, beating expectations of $ 467.9 million. Globally, its same-store gross sales jumped 15.5% within the quarter.

Comparable retailer gross sales in North America elevated 13.5%. Papa John’s has additionally reaped larger royalties from its franchisees as a consequence of its operator help program, which started within the wake of the scandal involving founder John Schnatter. Worldwide comparable retailer gross sales elevated 21.4% within the quarter.

Papa John’s opened 40 internet new areas, primarily as a consequence of worldwide openings. As of December 27, roughly 65 of the corporate’s 5,400 websites have been briefly closed as a consequence of authorities restrictions, primarily in Latin America and Europe.

The corporate additionally shared an replace on its plans to open an workplace in Atlanta, saying it was set to open by the summer season. Papa John’s plans to spend $ 15-20 million by 2021 on the prices of including the workplace, together with severance, recruiting and relocating staff.

Papa John’s declined to supply an outlook for his 2021 monetary targets, citing uncertainty brought on by the pandemic.

Additionally Thursday, Domino’s Pizza launched quarterly outcomes that missed estimates.

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