Papa John's Q1 Sales Slump But Beats On Bottom Line With Strategic Cost Management
Portfolio Pulse from Akanksha Bakshi
Papa John's International, Inc. (NASDAQ:PZZA) reported a Q1 fiscal 2024 sales decline of 2.5% YoY to $513.92 million, missing consensus estimates. However, adjusted EPS of 67 cents beat expectations. North America and International comparable sales decreased by 2% and 3% respectively. The company saw 8 net unit openings, with global system-wide sales slightly down by 0.9% YoY. Adjusted operating income rose by 10% due to improved margins and cost discipline, despite a significant drop in net cash from operating activities and a small free cash outflow.
May 09, 2024 | 5:05 pm
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Papa John's Q1 fiscal 2024 report shows a sales decline but beats EPS estimates with strategic cost management. Shares fell 4.73%.
The sales miss could negatively impact investor sentiment in the short term, overshadowing the EPS beat and strategic cost management successes. The immediate stock price reaction (-4.73%) indicates a negative short-term impact.
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