Papa John’s price target raised to $45 from $41 at Jefferies on solid Q2 beat

Published 08/08/2025, 11:26
Papa John’s price target raised to $45 from $41 at Jefferies on solid Q2 beat

Investing.com - Jefferies has raised its price target on Papa John’s (NASDAQ:PZZA) to $45.00 from $41.00 while maintaining a Hold rating on the stock following the company’s second-quarter earnings results. According to InvestingPro data, the stock currently trades at $44.00, with a P/E ratio of 17.7x.

The pizza chain delivered a solid second-quarter beat, with domestic same-store sales turning positive and international sales outperforming consensus expectations at 3.7% versus 1.3%. The company maintains a healthy 4.18% dividend yield and has consistently paid dividends for 13 consecutive years.

Jefferies noted that while it’s still early in the company’s turnaround effort amid a challenging demand environment, with North American same-store sales slipping slightly in the third quarter to date, there are "clearly more green shoots emerging." InvestingPro analysis reveals 8 additional key insights about Papa John’s financial health and future prospects, available exclusively to subscribers.

These improvements stem from enhancements to Papa John’s loyalty program, an improved barbell menu strategy, increased guest engagement, and better focus on core brand differentiators.

The firm maintained its Hold rating, stating that the current risk/reward at 10x EV/EBITDA "seems fair," though it acknowledged the company’s turnaround appears to be one "to keep an eye on."

In other recent news, Papa John’s International Inc. reported strong financial results for the second quarter of 2025. The company exceeded analysts’ expectations with an earnings per share (EPS) of $0.41, surpassing the anticipated $0.35. This represents a 17.14% earnings surprise. Additionally, Papa John’s reported revenue of $529.2 million, which was higher than the expected $515.8 million. These results highlight a positive performance for the company during this period. The financial outcomes reflect recent developments and showcase the company’s ability to outperform market projections. Investors and analysts are closely monitoring these figures as they evaluate the company’s ongoing performance.

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