Papa John's (PZZA) PT Lowered to $115 at BTIG on Slowign Summer Sales

BTIG analyst Peter Saleh lowered the price target on Papa John's (NASDAQ: PZZA) to $115.00 (from $130.00) while maintaining a Buy rating as checks showed slowing sales over the summer.

The analyst commented, "We spoke with a handful of Papa John's franchisees over the past week to gauge sales trends, unit economics and franchisee sentiment. Our conversations indicated that sales trends slowed through the summer, turning negative in August/early-September, with mixed results through September. Major takeaways from our checks include lackluster appeal of the recently launched Papa Bowls, a quick pivot to the $6.99 Pairings promotion in September and gradual improvements in labor availability. We came away from the calls more cautious on the third and fourth quarter and are reducing our same-store sales and EPS estimates to reflect this. The reduced estimates and sales outlook also brings our price target down to $115 from $130.

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