Pzza

Papa John’s pays you a 5.6% dividend while earnings are projected to shrink 2% a year.

If you own PZZA, your income is real, but the business is barely growing.

pzza

consumer · restaurants small cap updated feb 13, 2026
$33.89
market cap ~$1B · 52-week range $30–$41
xvary composite: 45 / 100 · below average
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
Papa John’s sells pizza through franchised stores, company-owned restaurants, and ingredient shipments to its own system.
how it gets paid
Last year Pzza made $2.1B in revenue.
why growth slowed
Revenue fell 0.3% last year. Annual revenue was $2.1B, down 0.3% vs. prior year, so the top line is flat while profits are under pressure.
what just happened
Latest quarterly EPS was $0.34 versus a $0.40 estimate, a 15.0% miss.
At a glance
B balance sheet — gets the job done, barely
55/100 earnings predictability — expect surprises
20.5x trailing p/e — priced about right
5.6% dividend yield — cash in your pocket every quarter
17.5% return on capital — nothing to write home about
xvary composite: 45/100 — below average
What they do
Papa John’s sells pizza through franchised stores, company-owned restaurants, and ingredient shipments to its own system.
This business wins because 89% of its 6,030 restaurants are franchised, which means other people fund most store-level headaches. You get a supply chain business on top: commissary sales were 44% of 2024 revenue, so every pizza shipped through its system feeds the mothership.
restaurants small-cap franchise dividend consumer
How they make money
$2.1B annual revenue · revenue declined -0.3% last year
total revenue
$2.1B
0.3%
The products that matter
U.S. franchise royalties and fees
Domestic Franchising
$1.5B · 71% of revenue
it's the center of gravity at roughly $1.5B, and the latest quarter dropped to $498.2M from $530.8M a year ago. if this line keeps slipping, the rest of the story has to work harder.
core segment
global franchise expansion
International Franchising
$0.5B · +4.2% growth
this is the part still moving in the right direction. management plans 180–220 new international openings in 2026, which tells you where the growth burden now sits.
growth outlet
direct restaurant operations
Company-Owned Restaurants
data thin · still matters
specific revenue is not broken out here. what you do know is company-wide Q4 revenue was $498.2M and net income was only $6.83M, so store-level execution still leaks into the result.
execution risk
Key numbers
5.6%
dividend yield
You are getting paid real cash while you wait, which matters because the business is only projected to grow sales 2.0% a year.
20.5x
trailing p/e
That multiple means you are paying 20.5 times past earnings for a company with projected earnings decline of 2.0% a year.
17.5%
return on capital
Return on capital → profit generated from money invested in the business → so what: the core model still produces solid returns despite weak growth.
$727M
long-term debt
Debt equals 40% of capital, which is workable, but it leaves less room if margins stay thin at 3.1%.
Financial health
B
strength
  • balance sheet grade B — adequate — nothing special
  • risk rank 3 — safer than 50% of stocks
  • price stability 35 / 100
  • long-term debt $727M (40% of capital)
  • net profit margin 3.1% — keeps 3 cents of every dollar in revenue
B — functional but not a standout on the balance sheet.
Total return vs. market

You invested $10,000 in PZZA 3 years ago → it's now worth $3,920.

The index would have given you $13,880.

source: institutional data · total return
What just happened
missed estimates
Latest quarterly EPS was $0.34 versus a $0.40 estimate, a 15.0% miss.
Annual revenue was $2.1B, down 0.3% vs. prior year, so the top line is flat while profits are under pressure. Quarterly EPS history also shows slippage, with 2025 full-year EPS at $1.65 versus $2.34 in 2024.
$525M
revenue
$0.34
eps
15.0%
eps surprise
the number that mattered
The number that mattered was the $0.34 EPS print, because missing a $0.40 estimate by 15.0% tells you profit pressure is arriving faster than the market expected.
source: company earnings report, 2026

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What could go wrong

the #1 risk is continued shrinkage in the U.S. franchise base that still drives most of the revenue.

!
high
domestic weakness keeps spreading
Domestic Franchising is roughly 71% of revenue, and that segment fell 6.1% in the latest quarter.
If the core U.S. base keeps shrinking, the smaller international business will not be big enough to cover it.
!
high
margin pressure turns small misses into big earnings damage
Latest net profit margin was 1.49%, and quarterly net income fell to $6.83M from $14.63M a year ago.
At that margin, modest cost pressure or a weak sales week matters more than it should for a franchise name.
med
debt gets louder when the earnings base gets smaller
Long-term debt is $727M, or 40% of total capital.
That debt looks manageable while EBITDA holds near $200M–$210M. It looks less comfortable if profitability slips again.
med
the dividend becomes the debate
The stock yields 5.6%, but 2026 adjusted EBITDA guidance is only $200M–$210M and implies no visible earnings acceleration.
The yield brings people in. It also becomes the first thing investors question if flat results turn into another down quarter.
With 71% of revenue tied to domestic franchising, a latest-quarter net margin of 1.49%, and $727M of long-term debt, this business does not have much shock absorption.
source: institutional data · regulatory filings · risk analysis
Pay attention to
core metric
domestic revenue trend
Domestic is roughly 71% of revenue. If that line keeps falling after the latest 6.1% drop, the turnaround pitch gets much harder to defend.
calendar
Q1 2026 earnings report
Expected late April 2026. You want to see whether revenue stabilizes and whether the $200M–$210M EBITDA guide still looks credible.
growth
international openings actually landing
The target is 180–220 new international stores in 2026. That matters because international is the only segment here still showing clear growth.
capital return
dividend staying power
The quarterly dividend is $0.46 per share. A 5.6% yield looks attractive until flat earnings force harder capital allocation choices.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think this stock is more likely to lag than lead from here.
risk profile
average
stability score 3 — not especially safe, not a disaster either. average means you are still underwriting the business model, not hiding behind a label.
chart momentum
average
technical score 3 — the chart is not rescuing the fundamental story right now.
earnings predictability
55 / 100
a 55/100 predictability score means quarterly results move around more than you want in a thin-margin restaurant name.
source: institutional data
Institutional activity

133 buyers vs. 138 sellers in 3q2025. total institutional holdings: 36.8M shares.

source: institutional data
Price targets
3-5 year target range
$12 $46
$34 current price
$29 target midpoint · 14% from current · 3-5yr high: $55 (+60% · 16% ann'l return)
source: institutional data · analyst targets

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