Skip to Content
Morningstar

Papa John's International Inc PZZA

Morningstar Rating
Unlock
Stock XNAS Rating as of
$45.24 −0.73 (1.59%)
View Full Chart
As of Delayed Price Pre-Open: $45.20 0.00
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

Papa John's North American Emphasis Intact, but Premium Position Makes for Tough Near-Term Prospects

Sean Dunlop

Papa John's International sits in an interesting niche in the $93 billion global pizza quick-service restaurant market (Euromonitor), with its "better ingredients, better pizza" mantra reflecting a commitment to simpler products that are purportedly higher quality than those of its largest category peers, Domino's and Pizza Hut. The firm's premium positioning limits its ability to lean on discounting during periods of intense competitive pressure but also permits it to compete for more affluent clientele, somewhat blunting its cyclicality. Pizza's categorical position as the cheapest option to feed a family also benefits the subindustry during periods of pressure.

Read Full Report

Price vs Fair Value

View History
PZZA is trading at a 645% premium.
Price
$45.24
Fair Value
$71.00
Uncertainty
High
1-Star Price
$882.48
5-Star Price
$56.10
Economic Moat
Xgyyr
Capital Allocation
Gwnrkybmt

Bulls Say, Bears Say

Bulls

Papa John's stronger cash-on-cash returns underpin a durable international growth narrative and could see the firm better compete in important pizza markets in continental Europe, Brazil, and Australia.

Bears

Rampant inflation in food costs and hourly labor could lead to structurally lower margins across the restaurant industry.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if PZZA is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
$45.97
Day Range
$44.56–46.33
52-Week Range
$44.56–86.38
Bid/Ask
$44.96 / $45.49
Market Cap
$1.49 Bil
Volume/Avg
970 / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
16.76
Price/Sales
0.70
Dividend Yield (Trailing)
4.07%
Dividend Yield (Forward)
4.07%
Total Yield
4.11%

Company Profile

Papa John's is one of the largest players in the global QSR, or quick-service restaurant, pizza market, boasting more than 5,900 restaurants across nearly 50 countries at the end of 2023. The firm operates a predominantly franchised system, owning 11% of its restaurants and generating revenue from franchise royalties, sales of pizza and related products at its company-owned stores, and sales from its commissary supply chain. The firm is the fourth-largest limited-service pizza chain both in the US and globally, with a sizable presence in the UK, China, South Korea, and Chile.
Sector
Consumer Cyclical
Industry
Restaurants
Stock Style Box
Small Core
Total Number of Employees
13,200
Website
https://www.papajohns.com

Competitors

Valuation

View More
Metric
PZZA
YUM
MCD
Price/Earnings (Normalized)
 16.7624.7320.63
Price/Book Value
 ———
Price/Sales
 0.705.287.02
Price/Cash Flow
 9.1621.4318.43
Price/Earnings
PZZA
YUM
MCD

Financial Strength

Metric
PZZA
YUM
MCD
Quick Ratio
 0.461.130.63
Current Ratio
 0.801.490.83
Interest Coverage
 3.144.668.46
Quick Ratio
PZZA
YUM
MCD

Profitability

Metric
PZZA
YUM
MCD
Return on Assets (Normalized)
 10.18%24.93%16.58%
Return on Equity (Normalized)
 ———
Return on Invested Capital (Normalized)
 23.15%56.97%21.45%
Return on Assets
PZZA
YUM
MCD
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Restaurants Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
McDonald's Corp
MCD
TryhztyZnxr$178.6 Bil
 Starbucks Corp
SBUX
VwwcgnrcxJkwcc$87.0 Bil
 Chipotle Mexican Grill Inc
CMG
ZkbpvnchbtHnmc$84.3 Bil
 Compass Group PLC ADR
CMPGY
HsfqtbpdlTfpmht$46.1 Bil
 Yum Brands Inc
YUM
NdwhqsvwWgngj$36.6 Bil
 Restaurant Brands International Inc
QSR
YwwnzxtHxzwdd$21.6 Bil
 Darden Restaurants Inc
DRI
BfzjdrmzKpzgnb$17.5 Bil
 Domino's Pizza Inc
DPZ
YnyhvsmjfgDclt$17.2 Bil
 Wingstop Inc
WING
VjywwxjywVrxlgr$12.4 Bil
 Yum China Holdings Inc
YUMC
TlywjxnPglg$11.8 Bil

Sponsor Center