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Papa John’s also reported very impressive annual figures, with total revenue of $1.813 billion, a 12% increase over the 2019 record.
American pizza restaurant franchise Papa John’s Int’l Inc (NASDAQ: PZZA) has released its fourth-quarter and full-year 2020 financial results, with earnings slightly missing analysts’ expectations. According to a CNBC report, the Louisville-based company reported Earning Per Share of 40 cents as against the 46 cents expected by Refinitiv economic researchers.
The detailed report from Papa John’s showed that the fourth-quarter revenue came in at $469.8 million, up 12.5% over 2019. Analysts projected this earning to fall at $467.9 million for the quarter.
Comparable sales shot up by 13.5% in North America and 21.4% Internationally. The impressive global sales birthed as many as 40 new units. While the earnings per diluted share rose to $0.28 from a loss per diluted share of $0.18 in the year-ago period, the company paid out $2.7 million to its front-line workers as the end of the year bonuses. This accounts for about $0.06 per diluted share.
“Q4 2020 was the third consecutive quarter of double-digit comparable sales growth and the sixth straight quarter of positive comparable sales in North America. We ended the year with the launch of Epic Stuffed Crust, the biggest product innovation in the company’s history, and our future is extremely bright,” said President & Chief Executive Officer Rob Lynch.
Papa John’s shares were down 7.44% in the pre-market trading after closing Wednesday’s session at 0.73% to $102.64. The dip in the stock value may be due to the lower-than-expected, earnings but the firm’s overall sound result may give way to a swift turnaround on Thursday. As the market opened, PZZA stock is 11.59% down.
Papa John’s Full-Year Earnings Reveals Strength In the Company’s Business
Papa John’s also reported very impressive annual figures, with total revenue of $1.813 billion, a 12% increase over the 2019 record. Comparable sales went up by 17.6% in North America and 12.6% Internationally. The company also reported that its North America franchising increased $10.3 million to $26.9 million primarily due to higher comparable sales of 14.5%. Earnings per diluted share rose to $1.28 compared to a loss per diluted share of ($0.24). Cash flow from operations came in at $186.4 million and free cash flow for the year was $137.1 million.
“2020 was a transformational year for Papa John’s, as we turned our focus to the future. We were able to deliver industry-leading sales growth and significant profitability by coming together as a system to take care of our team members, customers, and communities in one of the most challenging years in history,” said President Rob.
In addition to improved revenues from sales growth, Papa John’s also recorded earnings from its mobile ordering business and it’s print and promotions subsidiary. The revenue accrued through these channels came in at $1.8 million.
While the company refused to give guidance for its 2021 fiscal year based on the uncertainties surrounding the global recovery from the COVID-19 pandemic, the firm is gearing up to move to its new headquarters, a venture that will cost about $20 million in costs related to setting up the office.