Papa John’s International once again fell short of analysts’ expectations for its fourth-quarter earnings and revenue — and the embattled pizza chain is forecasting more struggles ahead.
Same-store sales in North America decreased by 8.1 percent during the fourth quarter. Outside of North America, same-store sales saw smaller declines of 2.6 percent.
Papa John’s is predicting that North American sales will continue to decline in fiscal 2019, forecasting same-store sales declines in the region between 1 to 5 percent. On the other hand, it is expecting that international same-store sales will be flat or increase up to 3 percent.
Shares of the company rose 1 percent in extended trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: 15 cents, adjusted, vs. 17 cents expected
- Revenue: $374.0 million vs. $390.1 million expected
Papa John’s swung to fiscal fourth-quarter net loss of $13.8 million, or 44 cents per share, from net income of $28.5 million, or 81 cents per share, a year earlier.
Excluding the costs of financial assistance to North American franchisees and the company’s special committee, the pizza chain earned 15 cents per share, falling short of the 17 cents per share expected by analysts.
Net sales fell 20 percent to $374.0 million, missing expectations of $390.1 million.