Papa John’s (PZZA) stock rose yesterday after hours but is down now in the pre-market after the company announced Q1 2020 results. April is said to be the best month in the company’s history.
After closing yesterday with a profit of about 1%, Papa John’s International Inc (NASDAQ: PZZA) stock continued to rise in the after trading hours. The shares hit a 52-week high of $78.06 on Wednesday. The American Pizza restaurant franchise has seen its sales growth rise tremendously as most people change their normal lifestyle behavior. However, now in the pre-market, PZZA stock is at $76.55, having lost 0.46%.
All through the Covid-19 pandemic, Papa John’s shares have been rising steadily, having added 21.66% in the past 4 months. The figure is double what the S&P 500 Index has lost during the same period.
Its business was however hit hard at the beginning of the coronavirus outbreak, which saw the stock crash from trading around $69 to below $30 in less than a month. However, the comeback was incredible as the company has seen its stock rise above the previous high.
“We feel very confident that we have the infrastructure in place to deliver long-term, sustainable growth,” said Rob Lynch, the company’s CEO. As more people get to enjoy family time, the company’s product becomes more favored by most customers.
Papa John’s Q1 2020 Results that Boost Stock
Apart from the results, the company provided a business update in response to the coronavirus pandemic. According to the report, the Q1 earnings per diluted share of $0.15 compared to the first quarter of the prior year loss per diluted share of ($0.12).
Another thing that was highlighted in the report is the international comparable sales increased by 2.3%. In addition, the company recorded cash flow from operations of $33.7 million, and also a free cash flow of $24.4 million.
The most positive notable from the report is the fact that the company’s preliminary estimated April fiscal period comparable sales increased by 26.9% for North America and 1.4% for the international ones.
“I am proud to say that Papa John’s has kept its doors open and continued feeding our customers and neighbors in North America and most markets during the Covid-19 pandemic. Guided by the needs of our team members and the communities we serve, we have implemented rigorous additional health and safety measures, including No Contact Delivery, and expanded our health and paid-leave benefits.” Lynch said.
In his statement, Lynch said that the company’s team members and franchisees have served more than 2M free slices of Pizza to those in need and in the front line. He acknowledged that the rising number of orders by families depending on Papa John’s delivery has been a challenge.
“We are rising to this challenge, hiring thousands of new team members, safeguarding our supply chain and carefully managing our finances,” he concluded.