Papa John's International, Inc. (PZZA) Company Bio
Papa John's operates and franchises pizza delivery and carryout restaurants under the trademark Papa Johns in the United States and internationally. The company was founded in 1985 and is based in Louisville, Kentucky.
PZZA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Papa Johns International Inc. To summarize, we found that Papa Johns International Inc ranked in the 13th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for PZZA, they are:
The company's compound free cash flow growth rate over the past 5.76 years comes in at -0.03%; that's greater than just 23.93% of US stocks we're applying DCF forecasting to.
83% of the company's capital comes from equity, which is greater than 68.45% of stocks in our cash flow based forecasting set.
Relative to other stocks in its sector (Consumer Cyclical), Papa Johns International Inc has a reliance on debt greater than only 15.89% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
RSSV, VFC, CHDN, NWSA, and TXRH can be thought of as valuation peers to PZZA, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Pizza chain Papa John's Int'l, Inc. (NASDAQ: PZZA) deserves credit for rolling out a turnaround plan that started to show signs of success prior to the COVID-19 pandemic, according to Wedbush.The Papa John's Analyst: Nick Setyan initiated coverage of Papa John's' stock with an Outperform rating and $95 price target.The Papa John's Thesis: First-quarter comps prior to the third week of March were tracking at around 7%, one-third to one-half of which was due to recent menu innovation, Setyan said in the Tuesday initiation note. (See his track record here.) Menu innovation was not top-of-mind under ex-CEO John Schnatter's leadership, but is now a focus under Rob Lynch, the analyst said. In a normalized, post-coronavirus universe, Lynch could introduce new produc...
Papa John's International (NASDAQ: PZZA) said business is booming during the coronavirus pandemic. The pizza shop has been able to capitalize on its takeout and delivery business model, with three consecutive months of double-digit comparable sales growth. Almost since the COVID-19 pandemic began, Papa John's has recorded phenomenal growth in its North America market, with comps jumping at least 24% each month compared to the year-ago period.
Papa John's International Inc. said Tuesday that same-store sales for the five weeks ended June 28 at its North America restaurants rose 24.4% from a year ago, and rose 6.0% internationally, as demand continued to be strong amid the COVID-19 pandemic. For the second quarter, same-store sales at North America restaurants increased 28.0% and rose 5.3% at its international restaurants. The FactSet consensus for overall second-quarter same-store sales is for a 24.7% rise. The company said currently only 225 of its 2,100 restaurants are closed, principally in Europe and Latin America, while "almost all" of its North America restaurants are open. The stock, which gained 0.4% in premarket trading, has rallied 24.1% year to date through Monday, while the S&P 500 has lost 5.5%.