Papa John's Q1 profit falls as consumers trade down
Updated
Updated · The Wall Street Journal · May 7
Papa John's Q1 profit falls as consumers trade down
11 articles · Updated · The Wall Street Journal · May 7
Revenue dropped 7.7% to $478.6 million, adjusted earnings missed forecasts at 32 cents a share, and shares fell 4.7% early Thursday.
North America comparable sales fell 6.4%, while international comparable sales rose 3.6%; customers bought smaller pizzas and skipped sides and desserts, hurting margins and sales.
Chief executive Todd Penegor said the chain will push value, innovation and cost savings while maintaining its outlook for flat to low-single-digit declines in systemwide sales this year.
As Domino's expands, can Papa John's strategy of closing hundreds of stores actually reverse its deep sales decline?
Caught between budget diners and premium tastes, is the classic Papa John's pizza night becoming a relic?