Papa John’s Int’l, Inc. (NASDAQ:PZZA) unveiled its fourth-quarter results Tuesday, posting earnings that missed expectations and sent PZZA shares sliding.
The company’s fourth-quarter net income came in at 81 cents per diluted share, while adjusted earnings were 65 cents per diluted share, falling 6% year-over-year. Analysts were calling for adjusted earnings of 68 cents per share, according to the Zacks Investment Research consensus estimate.
For its full-year results, Papa John’s earned $2.83 per share, or $2.62 per share on an adjusted basis, which was a 3% gain compared to the year-ago quarter. Revenue for the quarter came in at $467.6 million, topping the Zacks projection of $461.94 million.
The company’s system-wide comparable sales in North America declined 3.9% year-over-year during the fourth quarter, while international comps were 2.6% better year-over-year. Papa John’s added that it had 98 net unit openings during its fourth quarter, all of which were in international locations.
“We know our potential is so much greater than our results, and we are taking significant steps to reinvigorate our record of profitable growth and value creation,” said Steve Ritchie, CEO and President of Papa John’s. “These actions build on all the strengths of the Papa John’s brand and include a fresh perspective around marketing driven by new media and creative partnerships, hiring a new PR partner, and bringing online a new engine to drive our Papa Rewards loyalty system.”
For the rest of its fiscal 2018, Papa John’s predicts that its comparable sales in North America will likely fall as much as 3% with a flat year-over-year upside.
PZZA stock declined about 6.6% after the bell Tuesday.