Papa John's misses on the top and bottom lines

  • Papa John’s shares were little changed late Tuesday after the company reported quarterly and full-year earnings results.
  • The pizza chain’s quarterly profits and revenue both fell short of analysts’ expectations.
  • The report comes less than one month after the company received an investment from Starboard Value, the New York-based activist hedge fund.
  • Shares have fallen 27% over the past year, but were up 5% so far in 2019.
  • Watch Papa John’s trade live.

Papa John’s shares jumped in after-hours trading Tuesday after the company reported quarterly and full-year earnings results.

The pizza chain reported fourth-quarter profits and revenue that missed analysts’ expectations.

Here’s what Papa John’s reported, compared with what analysts surveyed by Bloomberg were expecting:

  • Adjusted earnings per share (EPS): $US0.15 vs. $US0.18 expected.
  • Revenue: $US374 million vs. $US393.2 million expected.

International comparable sales fell 2.6% in the fourth-quarter, and 1.6% for the full-year.

The report comes less than one month after the activist hedge fund Starboard Value made a $US200 million investment in the pizza chain, and installed its chief executive as chairman.

Steve Ritchie, the company’s president and CEO, said in a release Tuesday that the pizza chain planned to make “targeted investments in the highest return initiatives” with the $US200 million investment.

Papa John’s shares have been under pressure over the last year after its disgraced founder, John Schnatter, resigned as chairman in mid-2018. The company reportedly looking to sell itself last fall.

Shares of the pizza chain have fallen 27% over the past year, but were up 5% year-to-date through Tuesday.

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Papa John's shares.Markets InsiderPapa John’s shares.

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