On the most recent disclosure with the Securities and Exchange Commission, Alerus Financial NA has acquired a new position in Papa John’s International, Inc. (NASDAQ:PZZA), effectively owing 0.10% of the company at the end of the most recent quarter. The American restaurant franchise operates under five segments namely Domestic Company-owned Restaurants, North America Franchising, North America Commissaries, International Operations and All Others. The Domestic Company-Owned Restaurants segment brings in significant revenues from the retail sales of pizza and side items such as breadsticks, cheese sticks, chicken poppers and wings, dessert items, canned or bottled beverages; which is followed closely by the North America Franchising segment.
As of Tuesday, shares of PZZA stock opened at $72.62. On a technical analysis perspective, Papa John’s International has had an average momentum over the past few months based on its 50-day moving average of $74.41 and a 200-day moving average of $80.85; indicating possible consolidation period waiting for further market catalysts to trigger growth again. It has also had movements ranging from a yearly low of $66.74 to a high mark of $97.78 with a current market cap amounting to $2.52 billion.
The industry that Papa John’s International operates on has been experiencing headwinds due to changing consumer behaviors since more people are opting to cook food instead of ordering out during this pandemic-ridden era where health safety is emphasized . The company reported that “North American restaurant transactions are currently down approximately mid single digits year-over-year with advertising rates up significantly as activities ramp back up across our network” in their fourth quarter earnings report last February.
Papa John’s aims to optimize business operations with strategic initiatives including enhancing digital ordering capabilities worldwide and investment in supply chain management domestically among others said CEO Rob Lynch. Also announced was an internal restructuring plan through eliminating “corporate bureaucracy” in order to achieve better efficiency in decision-making processes.
With Alerus Financial NA’s acquisition of PZZA, it is an indication that the brand shows growth potentials in a rather shaky climate for the industry. Analysts further speculate that Papa John’s International must continue to innovate and adapt to stay relevant and cope with changing needs of consumers such as the increase of plant-based alternatives and new ordering methods.
[bs_slider_forecast ticker=”PZZA”]
Papa John’s International, Inc. Sees Changes in Stock Positions by Institutional Investors and Hedge Funds amid Moderate Buy Rating and Strong Dividend Yield
Papa John’s International, Inc. has recently seen changes in their stock positions by several institutional investors and hedge funds. American Century Companies Inc. made a $491,000 investment in the company during Q1 while US Bancorp DE increased its stake by 209.4% to own 4,415 shares worth $466,000 after buying an additional 2,988 shares. Natixis Advisors L.P. bought a new position worth roughly $1,664,000, and Bank of Montreal Can grew its holdings by 5.5% to own shares worth $408,000 after purchasing an additional 201 shares in the same quarter. Additionally, Rhumbline Advisers raised its stake by 2.2% to own 93,544 shares valued at $9,848,000 after acquiring an extra 1,970 shares in the previous quarter. Institutional investors and hedge funds now make up 99.21% of the company’s stock ownership.
Researchers have weighed in on the stock with a “Moderate Buy” rating based on data from Bloomberg.com and have provided a consensus price target of $95.09 from nine buy ratings out of thirteen analysts that have rated it so far.
Papa John’s operates and franchises pizza delivery and carryout restaurants with segments in Domestic Company-owned Restaurants; North America Franchising; North America Commissaries; International Operations; and All Others. Among these segments is the Domestic Company-Owned Restaurants which generates revenues primarily from retail sales of pizza and side items including breadsticks, chicken poppers and wings as well as dessert items.
In May this year Papa John’s released first-quarter financial results reporting earnings per share (EPS) of $0.68 compared to the expected EPS of $0.66 – a difference of $0.02 per share lower than last year’s reported EPS at this time which stood at $0.95 for the same quarter. The company had a net margin of 3.82% and an unimpressive negative return on equity of 30.45%, while revenue for the first quarter was $527 million as opposed to a consensus estimate of $534 million – representing a 2.9% decrease in business compared to the same period last year.
In closing, Papa John’s also recently announced a dividend payment with shareholders of record on May 15th receiving $0.42 per share and an annualized yield of 2.31%, which is speculated to be well received by investors in the near future despite its recent broad challenges in addition to numerical fluctuations despite this sustained support from their investors.