Joe Raedle
Papa John’s International (NASDAQ:PZZA) provided updates on long-term strategic initiatives ahead of a company presentation at the ICR Conference in Orlando, Florida. The initiatives were said to be designed to drive North America development, accelerate comparable sales growth and restaurant-level profitability in North America, as well as International profitability and long-term development.
“It is our ambition to continue our positive momentum and to become the QSR pizza brand of choice for customers and franchisees around the world,” stated Papa John’s (PZZA) CEO Rob Lynch.
The strategic growth initiatives from Papa John’s (PZZA) include enhancing national marketing investment and effectiveness. As part of the effort to drive system-wide sales growth and brand affinity, Papa Johns will be activating a new marketing strategy in 2024. The company also plans to accelerate development in North America and initiate international transformation initiatives
CEO update: “Over the past 10 years, we have more than doubled our international footprint and now operate in 50 countries and territories. As we pursue the next phase of international growth, we are taking the necessary steps to evolve our business structure to deliver an enhanced value proposition to our customers and franchisees, ensure targeted investments and efficient resource management, and better position our largest markets, including the UK, for long-term, profitable growth and brand strength.”
On the guidance front, Papa John’s (PZZA) said global system-wide sales were up 12% to approximately $1.3B for Q4. Excluding the 53rd week in 2023, global system-wide sales for the fourth quarter were up approximately 3%. North America comparable sales, on a 13-week basis, were up 2% compared with the fourth quarter of 2022 as transaction and ticket growth delivered 2% comparable sales at both domestic company-owned restaurants and North America franchised restaurants. The 2% mark beat the consensus estimate of +1.7%. International comparable sales, on a 13-week basis, were down approximately 6% for the fourth quarter.
Shares of Papa John’s (PZZA) edged 0.15% higher in premarket trading.