- Papa John's released its Q3 results last week, reporting 8% growth in revenue year-over-year, lapping tough comps of 17% growth in the year-ago period.
- The solid quarter was driven by impressive comp sales growth of 6.9% domestically, combined with steady unit growth, with 169 net new restaurants opened year-to-date.
- However, while Papa John's continues to be a solid growth story in the restaurant sector, the stock continues to look expensive relative to historical levels.
- So, with the stock trading at more than 36x FY2022 earnings estimates, I don't see any way to justify paying up for the stock here, and I continue to see much better value elsewhere in the market.
For further details see:
Papa John's: Growth At An Unreasonable Price