Papa John's International, Inc. (NASDAQ:PZZA) shares closed 17.8% lower on the 6th after the pizza chain reported second quarter earnings that missed expectations and announced a dividend suspension. The stock is now down 49% over the past year and 39% year-to-date. Revenue fell 8.8%, system-wide restaurant sales dropped 4.8%, and net income dipped by $1 million to $8.7 million. The company also cut its EBITDA guidance to a midpoint of $185 million from an earlier $200 million and said it would close between 200 and 250 North American stores in 2026. Adjusted earnings per share rose to 46 cents from 41 cents, and gross, operating, and net profit margins improved by 29, 18, and 4 basis points respectively. Jim Cramer said Domino's was better than Papa John's, noting Domino's revenue of $1.19 billion beat estimates and grew 4.3%, though its earnings and US same-store sales missed. Hedge fund ownership of Domino's stood at 45 versus 35 for Papa John's, and short interest was 24.51% for Papa John's versus 10.92% for Domino's.
Papa John's International IncWeak Q2 earnings, dividend suspension, lowered guidance, and store closures.
Domino's Pizza Inc Common Stock