Papa John's Shares Surged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of pizza peddler Papa John's (NAS: PZZA) were looking mighty tasty to investors today, as they rose as much as 11% in intraday trading on delish third-quarter results.
So what: Papa John's third-quarter revenue came in at a fresh $305.7 million, up 12% from last year and above the $293.9 million that Wall Street was expecting. The company baked that up with $0.44 in earnings per share, 47% above last year's result and easily ahead of analysts' $0.41 estimate. During the quarter, systemwide comparable-store sales were up 5.3% for North America and 4.7% internationally.
Now what: You want toppings with that? Of course you do. So how about this: The company also bumped up its outlook for the full year. Papa John's now expects 2011 earnings per share to come in between $2.08 and $2.15 versus its previous guidance range of $2.02 to $2.12. North American comparable-store sales are seen growing 3% to 4%, up from the previous expectation of 2% to 3% growth. All in all, it was a good day for Papa John's investors.
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