Papa John’s Int’l, Inc. (NASDAQ:PZZA) shares were soaring Wednesday as the company posted its quarterly earnings results.
For its second quarter, the pizza maker earned $23.5 million, or 65 cents per share, marking a 4.44% increase year-over-year. The figure came in ahead of analysts’ projections of 64 cents per share.
Papa John’s posted revenue of $434.8 million, which was 2.7% higher than the year-ago figure of $423 million. However, the figure missed the consensus estimate of $439 million.
Same-store sales were 1.4% higher year-over-year, below analysts’ expectations of a 1.8% surge, per StreetAccount. International same-store sales also disappointed, growing 3.9% versus Wall Street’s estimate of a 5% increase.
Papa John’s also announced a share buyback program of $500 million, or 19% of outstanding PZZA shares. The restaurant’s online business is becoming more prominent as well with 60% of its sales coming from orders made through its website.
“We have to step up and act like an e-commerce company and advertise like an e-commerce company,” Papa John’s chief marketing officer Brandon Rhoten told analysts.
Rhoten added that the company’s marketing spending will be more focused towards campaigns that actually pay dividends, including digital sales.
“The wonderful thing about 2017 is the media landscape is so broad and so diverse,” he added. It’s important for Papa John’s to know how much it’s getting back for every dollar they put in, Rhoten included.
Better ingredients may be on the horizon as well.
PZZA shares rose 9.6% Wednesday.