Papa John's Shares Surged: What You Need to Know

Updated

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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At the time thisarticle was published The Motley Fool owns shares of Papa John's International. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.Fool contributorMatt Koppenhefferhas nofinancial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting hisCAPS portfolio, or you can follow Matt on Twitter,@KoppTheFool, or onFacebook. The Fool'sdisclosure policyprefers dividends over a sharp stick in the eye.

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