Papa John's International Inc
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
We found at least one documented issue that threatens the company itself — regardless of how the stock is currently valued.
Why this colour
We rate business quality red, and it is the balance sheet that drives it, not the share price. At June 28, 2026 the books carry a stockholders' deficit of $442.3 million against $727.5 million of borrowings and only $28.5 million of cash. Fairness requires naming how that deficit arose: not through losses — retained earnings are a positive $195.3 million — but through share repurchases carried at $1,098.8 million of cost. That distinction is real and it speaks for the company. It does not change the situation. A business with no equity cushion needs a dependable earnings stream, and that stream is eroding: net income fell from $120.0 million in 2021 to $30.5 million in 2025, North America comparable sales fell 8.3 percent in the quarter ended June 28, 2026, and on August 6, 2026 the company cut its own earnings guidance by $20 million and suspended the dividend. Credit agreement covenants were met at the balance sheet date and maturities do not fall due until 2029 and 2030, so there is no acute distress. There is, however, a company without reserves at exactly the moment it must pay for a multi-year transformation. This rating says nothing about the price of the stock: it trades near a multi-year low and can rise from there. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Papa John's is a profitable licensing and logistics business with a household brand whose North America core has been losing ground at a double-digit rate for a year. The dividend was no longer covered by free cash flow in 2025 and was suspended on August 6, 2026, the same day earnings guidance fell by $20 million. The balance sheet carries a $442.3 million stockholders' deficit from old buybacks, set against $727.5 million of borrowings and $28.5 million of cash. The transformation is under way; its effect would first be measurable in 2027. Not investment advice.
North America core business
Comparable sales down 8.3 percent in the quarter ended June 28, 2026, after a 0.9 percent gain a year earlier. Full-year guidance was cut on August 6, 2026 from down 2 to 4 percent to down 6 to 8 percent. North America accounts for roughly 71 percent of global system-wide sales.
International business
Seventh consecutive quarter of positive comparable sales (up 1.5 percent in the quarter ended June 28, 2026), system-wide sales up 5 percent to $347.2 million, net 67 additional units over four quarters. Too small to offset North America, but the only growing part.
Capital returns
The dividend exceeded free cash flow in 2022 and 2024 and consumed nearly all of it in 2025 at $61.141 million against $61.305 million. It was suspended on August 6, 2026 from the third quarter of 2026 — the right call, but a late one.
Balance sheet and leverage
A $442.274 million stockholders' deficit and $727.5 million of borrowings against $28.5 million of cash at June 28, 2026. The deficit stems from buybacks (treasury stock at $1,098.835 million of cost), not from losses, and credit agreement covenants were met (leverage ratio 3.3 against a 5.25 maximum).
Cost discipline and transformation
Adjusted EBITDA held at $52.7 million in the quarter ended June 28, 2026 despite an 8.8 percent revenue decline, with general and administrative expense down from $70.1 million to $59.0 million. Against that sit $24 million to $31 million of restructuring costs for 2026 and 2027, and a chief executive who called the transformation "taking longer than anticipated" on August 6, 2026.
Leadership and reporting quality
The chief financial officer resigned on June 26, 2026, five weeks before the dividend suspension and guidance cut; the interim successor is serving that role for the second time. The August 6, 2026 release also corrects $1.0 million of restaurant sales that had been overstated in the first quarter of 2026.
Worth Noting
The trigger was the SEC current report on Form 8-K filed August 6, 2026 (Item 2.02) with the dividend suspension and reduced outlook, not a hit in our in-house stock scanner.
Data basis: Form 10-Q for the quarter ended June 28, 2026 (filed August 6, 2026) fully reviewed, all SEC submissions through August 14, 2026 checked; fundamental data and prices as of August 20, 2026.
Important when comparing data sources: some services still show a dividend yield of roughly 7 to 8 percent for PZZA. It reflects the dividend paid through the second quarter of 2026 and is void from the third quarter of 2026 onward.
A price-to-book ratio is not meaningful for Papa John's: book value per share is negative because of the stockholders' deficit (roughly minus $13.76 as of August 20, 2026).
Fiscal 2023 comprised 53 weeks rather than 52; revenue comparisons with that year are therefore not directly comparable.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at PZZA since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 20.10 $ to 55.30 $ · Last price: 20.10 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Restaurants
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Papa John's International Inc PZZA | 0.7 | 25.5 | 9.0 | 20.4 | 5.6 | -0.3 | -54.7 |
| McDonald’s Corporation MCD | 176.6 | 21.4 | 15.4 | 57.4 | 44.3 | 3.7 | -16.4 |
| Starbucks Corporation SBUX | 110.2 | 75.7 | 24.8 | 22.3 | 8.4 | 2.8 | 19.1 |
| Chipotle Mexican Grill Inc CMG | 43.0 | 30.7 | 22.5 | 39.4 | 13.3 | 5.4 | -14.3 |
| Yum! Brands Inc YUM | 37.2 | 23.2 | 17.5 | 45.3 | 31.1 | 8.8 | -5.0 |
| Restaurant Brands International Inc. QSR | 33.2 | 23.9 | 14.5 | 34.1 | 25.9 | 12.2 | 19.0 |
| Darden Restaurants Inc DRI | 23.9 | 20.8 | 14.4 | 21.7 | 14.3 | 6.0 | 2.2 |
| Yum China Holdings Inc YUMC | 14.2 | 15.2 | 8.4 | 20.3 | 11.5 | 4.4 | -4.9 |
| Texas Roadhouse Inc TXRH | 11.0 | 28.0 | 18.1 | 16.3 | 9.0 | 9.4 | 3.2 |
| Median of companies shown | 33.2 | 23.9 | 15.4 | 22.3 | 13.3 | 5.4 | -4.9 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 1,714 | 165 | 103 | 2.75 | 144 | 10 | 513 |
| 2017 | 1,783 | 151 | 104 | 2.84 | 135 | -106 | 556 |
| 2018 | 1,573 | 30 | 2 | 0.05 | 73 | -302 | 571 |
| 2019 | 1,619 | 25 | 5 | 0.15 | 62 | -332 | 731 |
| 2020 | 1,813 | 90 | 58 | 1.77 | 186 | -282 | 873 |
| 2021 | 2,068 | 168 | 120 | 3.40 | 185 | -188 | 886 |
| 2022 | 2,102 | 109 | 68 | 1.90 | 118 | -286 | 864 |
| 2023 | 2,136 | 147 | 82 | 2.48 | 193 | -459 | 875 |
| 2024 | 2,059 | 157 | 83 | 2.54 | 107 | -430 | 889 |
| 2025 | 2,054 | 89 | 31 | 0.93 | 126 | -445 | 927 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q3 | 0.43 | -18.90 | 507 | -3.10 | 8.20 | 14 | -4 |
| 2024: Q4 | 0.63 | -30.80 | 531 | -7.10 | 2.80 | 51 | 25 |
| 2025: Q1 | 0.36 | -46.30 | 518 | 0.90 | 1.80 | 31 | 19 |
| 2025: Q2 | 0.41 | -32.80 | 529 | 4.20 | 1.80 | 36 | 17 |
| 2025: Q3 | 0.32 | -25.60 | 508 | 0.30 | 0.90 | 39 | 19 |
| 2025: Q4 | 0.34 | -46.00 | 498 | -6.10 | 1.40 | 20 | 6 |
| 2026: Q1 | 0.32 | -11.10 | 479 | -7.70 | 1.50 | 7 | -6 |
| 2026: Q2 | 0.46 | 12.20 | 482 | -8.80 | 1.80 | 29 | 16 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 8 of our scanner strategies — each hit links to the scanner.
Growth
Quality & Balance Sheet
Aktien.Guide
Breakout & Setup
Dividends
Momentum & Trend
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 1.18 | 0.90 – 1.45 | 1,883 | -17.4% | 14 |
| 12/31/2027 | 1.33 | 0.95 – 1.63 | 1,844 | 12.7% | 14 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 7.2% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $34.2M |
|---|---|
| Market cap | $661.0M |
| Free cash flow in year ten | $68.8M |
| Terminal value as a share of market value | 54.9% |
For comparison: over the past five years free cash flow shrank by 16.5% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Papa John's verkauft Pizza, keine Technologie — nutzt künstliche Intelligenz aber belegbar im eigenen Betrieb: Der Vorstand führt „KI-gestützte Verbesserungen“ der Bestellstrecke als Fortschrittsbeleg an, und der Geschäftsbericht nennt künstliche Intelligenz ausdrücklich als eine der Technologien, in die investiert wird.
View the full file — quotes, sources, reviewed filings
„While our transformation is taking longer than anticipated, we continue to execute our strategy with discipline and focus and are seeing encouraging progress, including a growing and highly engaged Papa Rewards membership, supply chain savings, and AI-driven improvements to the customer ordering experience."
Auch wenn unser Umbau länger dauert als erwartet, setzen wir unsere Strategie diszipliniert und konzentriert um und sehen ermutigende Fortschritte — darunter eine wachsende und stark engagierte Papa-Rewards-Mitgliedschaft, Einsparungen in der Lieferkette und KI-gestützte Verbesserungen der Bestellstrecke für unsere Kunden.
8-K · 2026-08-06 · View SEC filing
„There is also no guarantee that our investment in these technologies, including artificial intelligence and alternative methods of delivery, will deliver better business results, positive consumer experiences, or an adequate return on investment for the Company."
Es gibt auch keine Garantie dafür, dass unsere Investitionen in diese Technologien — einschließlich künstlicher Intelligenz und alternativer Zustellwege — bessere Geschäftsergebnisse, positive Kundenerlebnisse oder eine angemessene Kapitalrendite für das Unternehmen erbringen.
10-K · 2026-02-26 · View SEC filing
„The implementation and use of artificial intelligence technologies also present various risks and uncertainties, and failure to incorporate artificial intelligence technologies into our business as successfully as our competitors could adversely impact us, as could any deficiencies, unreliability or other failures of artificial intelligence systems, which could subject us to competitive harm, regulatory action, legal and financial liability and brand or reputational harm."
Die Einführung und Nutzung von Technologien der künstlichen Intelligenz bringt außerdem verschiedene Risiken und Unwägbarkeiten mit sich; ein Versäumnis, künstliche Intelligenz so erfolgreich in unser Geschäft einzubinden wie unsere Wettbewerber, könnte uns ebenso schaden wie Mängel, Unzuverlässigkeit oder sonstiges Versagen von KI-Systemen — mit möglichen Folgen von Wettbewerbsnachteilen über Aufsichtsmaßnahmen und rechtliche wie finanzielle Haftung bis zu Marken- und Reputationsschäden.
10-K · 2026-02-26 · View SEC filing
Filings Reviewed: 10-Q 2026-08-06 · 8-K 2026-08-06 · 8-K 2026-06-30 · 10-Q 2026-05-07 · 10-K 2026-02-26 · 10-K 2025-02-27
Rated on August 21, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years -0.8%
- More than 10% revenue growth is expected for the coming year -77.7%
- Share count grows by less than 3% a year -2.7%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 2.7%
- Gross margin at 40% or higher and without meaningful erosion 28.9%
- Goodwill from acquisitions does not grow faster than revenue 7.3%
- Net debt below twice EBITDA 5.8 x EBITDA
- Operating cash flow covers the profits of the last three years 230 m
- Return on capital at 15% or higher, or up versus two years ago 14.0%
- Insiders hold at least 10% or are net buyers 1.7%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
3/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 2.0%
- Exp. sales growth 3Y > 5% -5.2%
- EBIT growth 10Y > 5% -6.6%
- Exp. EBIT growth 3Y > 5% 19.9%
- Net debt < 4x EBIT 11.8x
- EBIT positive, 10Y straight 10
- Max. EBIT decline < 50% 85.1%
- Return on equity > 15% –
- ROCE > 15% 14.0%
- Expected return > 10% 31.0%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Sep 9, 2026 | Vasconi John Kevin | Chief Digital & Tech Officer | Other | 1,884 | 21.63 | 40,751 |
| Jul 31, 2026 | Penegor Todd Allan | President & CEO | Other | 8,498 | 29.90 | 254,090 |
The company
About the Company
Papa John's International, Inc. operates and franchises pizza delivery and carryout restaurants under the Papa Johns trademark in the United States, Canada, and internationally. It operates through four segments: Domestic Company-Owned Restaurants, North America Franchising, North America Commissaries, and International. The company operates dine-in and delivery restaurants. It also offers pizza and other food and beverage products. In addition, the company supplies pizza sauce, dough, food products, paper products, smallware, and cleaning supplies to restaurants. Papa John's International, Inc. was founded in 1984 and is based in Louisville, Kentucky.
- Employees
- 9,400
- Headquarters
- Louisville, KY
- Address
- 2002 Papa John’s Boulevard, 40299-2367 Louisville, United States
- Phone
- 502 261 7272
- Website
- papajohns.com
- IPO Date
- 06/08/1993
- ISIN
- US6988131024
- Stock Split
- 2:1 on 12/30/2013
- Stock Split
- 2:1 on 01/17/2006
- Stock Split
- 3:2 on 11/25/1996
Management
| Name | Title | Birth Year |
|---|---|---|
| Todd Allan Penegor | President, CEO & Director | 1965 |
| John Kevin Vasconi | Chief Digital & Technology officer | 1961 |
| Caroline Miller Oyler | Chief Legal & Administrative Officer | 1966 |
| Christopher K. Collins | Interim CFO, Senior VP of Corporate Finance & Principal Accounting Officer | 1970 |
| Heather Hollander | Senior VP of Strategy, Investor Relations and FP&A | – |
| Chris Lyn-Sue | Global Chief Marketing Officer | – |
| James Furnell | Senior Vice President of Global People Experience | – |
| Patrick Coelho | Senior Vice President of Development | – |
| Kurt Milburn | Chief Supply Chain Officer | – |
| John Matter | Global Chief Development Officer & Assistant Corporate Secretary | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
Data as of: September 17, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.