Papa John's Q4 Earnings Exceed Expectations

Papa John's International outperformed analyst expectations in the fourth quarter, reporting adjusted earnings of $0.63 per share, surpassing the consensus estimates of $0.48 to $0.50. Despite a revenue decline of 7.1% to $530.8 million compared to the previous year, it exceeded projections of $516.6 million. The company's stock rose by 6% in pre-market trading, reflecting investor optimism about its ongoing transformation efforts under CEO Todd Penegor. Although U.S. sales declined, international sales increased, and the company plans to open up to 315 new locations globally in fiscal 2025. Challenges remain, including a drop in operating margin to 5.6% and an EBITDA forecast below analyst expectations. Papa John's aims to improve its market position by enhancing its digital and loyalty programs, and simplifying operations.