Analysts Set Target Price for Papa John’s Shares at $49.78

Papa John’s International, Inc. (NASDAQ:PZZA) has received a consensus rating of “Hold” from twelve analysts currently covering the company, according to MarketBeat Ratings. The average target price set by brokerages for the upcoming year stands at approximately $49.78, reflecting a cautious optimism from investors regarding the pizza chain’s performance.

Eight analysts have assigned a hold rating to the stock, while four have given it a buy rating. Recent reports indicate that the company has been the focus of multiple analyst evaluations. For instance, on October 8, 2023, Weiss Ratings reaffirmed a “hold (c)” rating on Papa John’s shares. Additionally, Deutsche Bank Aktiengesellschaft increased its price target from $40.00 to $46.00, maintaining a “hold” rating on August 11, 2023.

Further adjustments came from Bank of America, which issued a neutral rating with a revised price target of $50.00, down from a previous $62.00, in a report dated October 6, 2023. Stifel Nicolaus also raised its target from $38.00 to $42.00, while UBS Group increased its price objective from $38.00 to $42.00 on August 4, 2023.

Recent Financial Performance

Papa John’s reported its quarterly earnings on August 7, 2023, showing an earnings per share (EPS) of $0.41, surpassing analysts’ expectations of $0.34 by $0.07. The company generated revenue of $529.17 million for the quarter, exceeding anticipated figures of $515.48 million. This performance reflects a year-over-year revenue increase of 4.2%, although it also noted a decline in EPS from $0.61 in the same quarter of the previous year.

Analysts forecast that Papa John’s will achieve an EPS of 2.19 for the current fiscal year, indicating a cautious outlook for the company’s profitability.

Dividend Announcement and Investor Activity

In addition to its earnings report, Papa John’s recently declared a quarterly dividend of $0.46 per share, which was paid out on August 29, 2023. This dividend translates to an annualized payout of $1.84 and represents a yield of 3.5%. The company’s dividend payout ratio stands at 81.42%, reflecting its commitment to returning value to shareholders.

Institutional investors have been actively adjusting their positions in Papa John’s. Charles Schwab Investment Management Inc. raised its stake by 4.1% during the first quarter, now holding 399,784 shares valued at approximately $16.42 million. Allspring Global Investments Holdings LLC increased its holdings by 117.4%, now owning 49,084 shares worth around $2.04 million.

Other notable changes include Templeton & Phillips Capital Management LLC, which raised its stake by 119.6%, now owning 92,276 shares valued at approximately $3.79 million. These movements highlight a growing interest from institutional investors in Papa John’s stock.

Papa John’s International, Inc. continues to operate and franchise pizza delivery and carryout restaurants across multiple segments, including Domestic Company-owned Restaurants, North America Franchising, and International Operations. As the company navigates the competitive landscape, analysts remain watchful of its financial metrics and market strategies in the coming months.