Papa John's Stock Declines 38% YTD: Buy at the Dip or Stay Away?

Zacks09-09

Papa John's International, Inc. PZZA stock has disappointed investors this year, underperforming the industry and the S&P 500. The company’s dismal performance was due to the challenging macroeconomic...

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The company’s dismal performance was due to the challenging macroeconomic...</p>\n\n<a href=\"https://finance.yahoo.com/news/papa-johns-stock-declines-38-140600434.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Papa John's Stock Declines 38% YTD: Buy at the Dip or Stay Away?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPapa John's Stock Declines 38% YTD: Buy at the Dip or Stay Away?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-09 22:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/papa-johns-stock-declines-38-140600434.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Papa John's International, Inc. PZZA stock has disappointed investors this year, underperforming the industry and the S&P 500. The company’s dismal performance was due to the challenging macroeconomic...</p>\n\n<a href=\"https://finance.yahoo.com/news/papa-johns-stock-declines-38-140600434.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CAKE","symbol_name":"芝乐坊餐馆","start_time":0,"source_url":"https://finance.yahoo.com/news/papa-johns-stock-declines-38-140600434.html","article_id":"2466197449","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/_kVRiTM9CuiHeIOOc6h1EA--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/0b8c96800166369416a71a4e0d1f58e5"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2466197449","pubTimestamp":1725890760,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Papa John's International, Inc. PZZA stock has disappointed investors this year, underperforming the industry and the S&P 500. The company’s dismal performance was due to the challenging macroeconomic environment and decline in organic delivery.So far this year, PZZA stock has declined 38.4% compared with the industry’s decrease of 2% and against the S&P 500 composite’s growth of 13.3%. As of Friday, the stock closed at $46.93, significantly below its 52-week high of $78.74 but above the low of $39.90. The company also underperformed compared with other industry players like The Cheesecake Factory Incorporated CAKE, up 7%, Texas Roadhouse, Inc. TXRH, up 32.4%, and Darden Restaurants, Inc. DRI, down 4.2%, so far this year.Shares of PZZA have seen slight gains in the past month, rising 2%. The company is likely to benefit from Back to BETTER 2.0, aiming to drive best-in-class pizza QSR unit economics through increased sales, higher restaurant-level margins and improved return on inve","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"CAKE":"芝乐坊餐馆","TXRH":"德州公路酒吧","BK4585":"ETF&股票定投概念","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","LU2065731478.USD":"ALLSPRING (LUX) WORLDWIDE FUND - SMALL CAP INNOVA \"I\" (USD) ACC","DRI":"达登饭店","BK4588":"碎股","BK4504":"桥水持仓","LU0053671581.USD":"摩根大通美国小盘成长股 A(dist)","PZZA":"棒约翰","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","BK4209":"餐馆","LU2087625088.SGD":"ALLSPRING  US ALL CAP GROWTH \"A\" (SGDHDG) ACC"},"translate_title":"棒约翰股价年初至今下跌38%：逢低买入还是远离？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CAKE":1,"DRI":1,"PZZA":1,"TXRH":1},"content_text":"Papa John's International, Inc. PZZA stock has disappointed investors this year, underperforming the industry and the S&P 500. The company’s dismal performance was due to the challenging macroeconomic environment and decline in organic delivery.So far this year, PZZA stock has declined 38.4% compared with the industry’s decrease of 2% and against the S&P 500 composite’s growth of 13.3%. As of Friday, the stock closed at $46.93, significantly below its 52-week high of $78.74 but above the low of $39.90. The company also underperformed compared with other industry players like The Cheesecake Factory Incorporated CAKE, up 7%, Texas Roadhouse, Inc. TXRH, up 32.4%, and Darden Restaurants, Inc. DRI, down 4.2%, so far this year.\nImage Source: Zacks Investment Research\nWhat’s Hurting PZZA?\nThe company's performance has been impacted by disappointing comparable sales. Sales trends in certain regions, like the Middle East and China, remain challenging. In the second quarter, total comparable sales dropped 2.7% year over year, which was worse than a 1.3% decline in the prior-year quarter. Sales at domestic company-owned restaurants fell 4.2% against a 2.2% increase in the prior year. Similarly, comparable sales at locations in North America decreased 3.6% year over year. The decline was due to fewer transactions caused by a reduction in organic delivery orders and a less favorable shift in channel mix compared to the previous year.The company's outlook for the rest of the year indicates a cautious approach, with North America's comparable sales experiencing a slight decline in the first four weeks of the third quarter. This trend may continue due to ongoing economic challenges and weakening consumer confidence. Consequently, the company has adjusted its full-year guidance to reflect this cautious outlook, anticipating North America's comparable sales to range from flat to a slight decrease for the entirety of 2024.In the second quarter of 2024, comps at international restaurants were down 0.1% year over year compared with 0.7% in the prior-year quarter. The comps were negatively impacted by the ongoing conflict in the Middle East and other ongoing macroeconomic uncertainties. The company is vigilant about international comparable sales due to the unpredictable international environment.Increased Additional investments in marketing and promotions are expected to place pressure on company-owned restaurant margins in the near term. The company has seen a significant number of store closures, particularly internationally, which affects net unit growth. The challenging macroeconomic environment continues to impact consumer spending, particularly in value-oriented purchases.\nCan PZZA Stock Bounce Back?\nShares of PZZA have seen slight gains in the past month, rising 2%. The company is likely to benefit from Back to BETTER 2.0, aiming to drive best-in-class pizza QSR unit economics through increased sales, higher restaurant-level margins and improved return on investment on new domestic restaurant openings in its largest and most profitable market.Under the Back to BETTER 2.0 strategy, the company is making thorough progress in product innovation and marketing strategy. In the second quarter of 2024, the company announced the implementation of the approved contribution rate increase to its Papa John’s Marketing Fund while keeping the local marketing spending optional. This strategic move was intended to increase the productivity of franchisees’ marketing contributions by leveraging the scale that national investments deliver. Also, in the early months of 2024, the company launched an all-new brand platform, “Better Get You Some,” which is part of PZZA’s deepened commitment and investment in its new marketing strategy.Papa John’s is dedicated to building and sustaining a robust franchise network. The company is actively working to remove obstacles to growth in existing international markets while also seeking new expansion opportunities. In the second quarter of 2024, Papa John’s opened 56 new restaurants internationally. Looking ahead, the company aims to significantly increase its international locations, with a substantial focus on franchised units.The company is investing in consumer-facing technology, digital infrastructure and enhanced financial and operational reporting to support its international teams and franchisees. The goal is to improve conversion rates, boost customer retention and provide franchisees with faster consumer insights by expanding ordering capabilities through its website and app and utilizing advanced analytics.The company’s loyalty program is driving an increase in digital transactions, with features such as early access to new products, targeted offers and promotions, and higher transaction frequency and ticket sizes contributing to its success. Moving forward, the company plans to increase investments in this channel to enhance customer frequency and personalization and attract new members.\nBuy, Sell, or Hold - PZZA\nAlthough the stock has declined sharply in the year-to-date period, it has shown some resilience in the past month. This Zacks Rank #3 (Hold) company is likely to benefit from the Back to BETTER 2.0 strategy, expansion efforts and loyalty program. For new investors, it may be wise to wait for more stability in certain regions, like the Middle East and China.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nDarden Restaurants, Inc. (DRI) : Free Stock Analysis Report\nThe Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report\nTexas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report\nPapa John's International, Inc. (PZZA) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.26.4","shortVersion":"4.26.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2466197449"}