- Papa John’s shares rose in after-hours trading on Tuesday after the company reported quarterly and full-year earnings results.
- The pizza chain’s quarterly profits and revenue both fell short of analysts’ expectations.
- The report comes less than one month after the company received an investment from Starboard Value, the New York-based activist hedge fund.
- Shares have fallen 27% over the past year, but are up 5% so far in 2019.
- Watch Papa John’s trade live.
Papa John’s shares jumped in after-hours trading on Tuesday after the company reported quarterly and full-year earnings results.
The pizza chain reported fourth-quarter profits and revenue that missed analysts’ expectations.
Here’s what Papa John’s reported, compared with what Wall Street was expecting, per analysts surveyed by Bloomberg:
- Adjusted earnings per share (EPS): $0.15 vs. $0.18 expected.
- Revenue: $374 million vs. $393.2 million expected.
International comparable sales fell 2.6% in the fourth-quarter, and 1.6% for the full-year.
The report comes less than one month after activist hedge fund Starboard Value made a $200 million investment in the pizza chain, and installed its chief executive as chairman.
Steve Ritchie, the company's president and CEO, said in a release on Tuesday that the pizza chain planned to make "targeted investments in the highest return initiatives" with the $200 million investment.
Papa John's shares have been under pressure over the last year after its disgraced founder, John Schnatter, resigned as chairman in mid-2018. The company was also reportedly looking to sell itself last fall.
Shares of the pizza chain have fallen 27% over the past year, but are up 5% year-to-date.
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