Papa John’s International, Inc. (NASDAQ:PZZA) shares traded higher on Thursday in the premarket session.
The company reported first-quarter adjusted earnings per share of 36 cents, beating the analyst consensus estimate of 35 cents. Quarterly sales of $518.31 million (up 1% year over year) outpaced the Street view of $513.55 million.
The higher revenues were largely attributable to an $11.4 million increase in Commissary revenues, reflecting higher commodity prices during the quarter.
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North American comparable sales fell 3% year over year, with company-owned stores down 5% and franchised ones down 2%.
In contrast, international comparable sales rose 3% from last year’s quarter.
Global system-wide restaurant sales were $1.22 billion, a 1% increase from the prior year’s first quarter.
The quarterly adjusted EBITDA was $50 million compared with $61 million in the prior year quarter.
Adjusted EBITDA was $49.6 million, a $10.9 million decrease from the prior year’s first quarter.
Papa John’s said the proposed U.S. tariffs are unlikely to significantly hurt its domestic business, as most ingredients are sourced locally. However, the broader impact on consumer spending and franchisee profitability is uncertain and could affect the company’s performance.
The company exited the quarter with cash and equivalents worth $44.012 million and inventories worth $37.195 million.
Outlook: Papa John's reaffirmed its FY25 outlook, expecting system-wide sales growth of 2% to 5% and adjusted EBITDA between $200 million and $220 million.
The company also projects 85 to 115 new restaurant openings in North America and 180 to 200 internationally.
Price Action: PZZA shares are trading higher by 5.11% to $35.00 premarket at last check Thursday.
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