PZZA - Why You Shouldn't Buy Papa John's Stock Despite Massive Sales Increases
Papa John's International (NASDAQ: PZZA) has become one of the more notable success stories of the COVID-19 pandemic. With competition from sit-down restaurants temporarily sidelined, the pizza delivery giant prospered as diners turned to its well-established delivery service.
Despite a sell-off in February, Papa John's stock has surged more than 170% from the bottom it hit in mid-March. Yet, with restaurants across the country resuming partial operations, investors may need to rethink the value proposition of Papa John's.
In a strange twist, Papa John's is one of the few consumer-discretionary stocks that flourished amid the pandemic. As a take-out and delivery business, the pizzeria's operations were not majorly affected by widespread lockdowns.