Papa John's Q3 Profit Plunges On Stagnant Revenues And Higher Costs; Misses View

(RTTNews) - Papa John's International, Inc. (PZZA), a restaurant business on Thursday reported vastly lower earnings for the third quarter ended September 25, 2022, amidst stagnant revenues and higher costs. The results also missed consensus estimates.

Net income for the period was $8.3 million or $0.23 per share as compared to $29.3 million or $0.79 per share in the third quarter of the previous fiscal.

Adjusted income excluding items, especially the effect of legal settlements was $19.2 million or $0.54 per share, versus $30.6 million or $0.83 per share in the comparative prior period.

15 analysts polled by Thomson Reuters were expecting the company to report earnings of $0.61 per share. Analysts typically exclude one-time items.

Operating income dropped to $19.5 million, from $38.6 million recorded in the third quarter of the previous fiscal.

Revenue declined to $510.5 million, from $512.8 million in the third quarter of the previous period. Total comparable sales declined 3.4 percent in the current period versus a growth of 7.3 percent in the previous period.

14 analysts polled by Thomson Reuters were expecting the company to report revenues of $513.4 million.

Shares of Papa John's International are currently trading in pre-market at $71.25, down $2.26 or 3.07 percent from the previous close.