PZZA - Papa John's International: Priced For Perfection

• Papa John's reported strong revenue growth in Q2, with revenue up 12% to $515 million, after lapping 15% growth in the year-ago period.
• These solid results were driven by strong comps both domestically and internationally, helped by menu innovation with the launch of Epic Stuffed Crust and Papadias.
• However, with Papa John's recent rally above $125.00, the stock is now trading at more than 36x FY2022 earnings estimates, well above the stock's historical valuation range.
• Based on this overvaluation combined with the fact that the stock is now approaching a multi-decade upper channel line, I believe it's time to book profits above $125.00.

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