Papa John’s earnings smash expectations as pizza demand remains strong post-pandemic

Papa John’s earnings smash expectations as pizza demand remains strong post-pandemic

Papa John's first-quarter earnings topped expectations as the pizza chain held on to the momentum it saw during the coronavirus pandemic, even as the country reopens for business.

The stock was down 2.7% in Thursday's premarket after the earnings announcement.

Pizza was a tried-and-true bet for many consumers who were seeking familiar and convenient foods for delivery in the early days of the health crisis. But thanks in part to menu innovations like Epic Stuffed Crust pizza, the company's sales are still growing. Papa John's also been working to improve its operations and has hired more than 30,000 workers over the last year.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

For the quarter ended March 28, net income rose to $33.9 million, or 82 cents per share, from $8.4 million, or 15 cents per share, a year earlier.

Excluding items, Papa John's earned 90 cents per share, far exceeding earnings of 56 cents per share expected by analysts.

Revenue rose nearly 25% to $511.7 million from $409.9 million a year earlier, outpacing estimates of $471 million.

In North America, same-store sales rose 26.2%, beating the gain of 14.6% estimated by analysts. Its international business