PZZA - Papa John's slips after North America comparable sales miss the consensus mark

Papa John's International ( NASDAQ: PZZA ) reported global system-wide restaurant sales were up 2.8% year-over-year to $1.20B in Q4 . The increase was noted to reflect higher equivalent units from net restaurant openings primarily in international markets as well as the increase in comparable sales in North America.

North America comparable sales were up 1% from a year ago to miss the consensus estimate of +2.1%. The North American comp was up 26% on a three-year stack, while international comparable sales were down 3% from a year ago and up 20% on a three-year stack.

Adjusted operating income was down 8.8% year-over-year to $38.2M for the quarter. The decreases in both operating income and adjusted operating income were attributable to higher commodity costs, wage inflation and increased depreciation and amortization costs linked to investments in digital innovation.

The pizza chain operator saw 117 net unit openings in the quarter, largely within international markets.

Looking ahead, Papa John's ( PZZA ) expects investments in product and digital innovation combined with strong operational excellence to continue to enhance the customer experience and contribute to healthy North America comparable sales and unit economics.

Shares of Papa John's ( PZZA ) fell 1.99% in premarket trading on Thursday to $90.50.

For further details see: