Stock Track | Papa John's Plunges 5.35% in Pre-market on Q4 Revenue Decline and Near-Term Pressures

Stock Track
01 Mar

Papa John's International Inc (NASDAQ:PZZA) shares plummeted 5.35% in pre-market trading on Friday, following the release of its disappointing fourth-quarter 2024 financial results.

The pizza chain reported a 7% year-over-year decline in total revenues to $531 million, while adjusted operating income fell by $10 million to $37 million. The company cited lower domestic sales and higher food costs, particularly for proteins and cheese, as the primary factors behind the weaker performance.

Key factors contributing to the stock's pre-market plunge:

  • Global system-wide restaurant sales declined by approximately 8% in constant currency during Q4 2024, primarily due to an additional week of operations in the prior year.
  • North America comparable sales dropped 4% in Q4, indicating continued challenges in the domestic market.
  • Adjusted operating income margin fell to 7% from 8.3% in 2023, impacted by higher food basket costs.
  • The company anticipates pressure on sales and margins to remain in Q1 2025 due to loyalty program enhancements and a value-focused consumer environment.

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