Papa John's Q2 Results: Strategic Closures And EPS Beat Drive Stock Higher
Portfolio Pulse from Akanksha Bakshi
Papa John's International, Inc. (NASDAQ:PZZA) reported a mixed Q2 fiscal 2024 with a revenue decline of 1.3% year-over-year to $507.894 million, missing the consensus of $520.519 million. However, the company beat EPS expectations with 61 cents against the expected 53 cents. North America comparable sales were down 4%, and international sales were flat. The company saw 31 net unit closures due to strategic international closures. Despite these challenges, adjusted operating income increased by 4% due to improved margins and cost discipline. The stock rose by 4.50% following the report.
August 08, 2024 | 3:21 pm
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Papa John's reported a mixed Q2 fiscal 2024 with a revenue decline but an EPS beat. North America sales were down, and international sales were flat. Despite strategic closures, adjusted operating income increased due to improved margins and cost discipline. The stock rose by 4.50%.
The EPS beat and improved operating income despite revenue decline and strategic closures indicate strong cost management and operational efficiency, leading to a positive short-term impact on the stock price.
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IMPORTANCE 80
RELEVANCE 100