Papa John's (NASDAQ: PZZA) reported Q4 EPS of $0.37, $0.05 better than the analyst estimate of $0.32. Revenue for the quarter came in at $417.51 million versus the consensus estimate of $405.31 million.

Highlights

• Fourth quarter 2019 loss per diluted share of ($0.18) and adjusted earnings per diluted share, excluding the impact of Special items, of $0.37 versus fourth quarter 2018 loss per diluted share of ($0.41) and adjusted earnings per diluted share of $0.18
• Full Year 2019 loss per diluted share of ($0.24) and adjusted earnings per diluted share, excluding the impact of Special items, of $1.17 versus full year 2018 earnings per diluted share of $0.08 and adjusted earnings per diluted share of $1.37
• System-wide North America comparable sales increase of 3.5% for the fourth quarter and decrease of 2.2% for the full year
• International comparable sales increases of 2.4% for the fourth quarter and 1.1% for the full year
• 52 net unit openings in the fourth quarter and 92 net unit openings for the full year, driven by International

Rob Lynch, President & CEO said, “Papa John’s accelerated its turn-around in the fourth quarter with a second consecutive quarter of positive comparable sales, positioning us for a strong start to 2020. The company’s new focused priorities and a more inclusive, winning culture are empowering our team members to innovate our products and marketing, drive sales growth, improve efficiencies and achieve better results for all of our stakeholders. Our 2020 plan accelerates this momentum, as we work to become the world’s best pizza company and deliver strong, long-term profit growth.”

GUIDANCE:

Papa John's sees FY2020 EPS of $1.35-$1.55, versus the consensus of $1.53.

In 2020, the company is targeting the following performance:

• GAAP EPS of $0.60 to $0.90 for the full-year, including anticipated Special charges of $25 million to $30 million (a)
• Adjusted EPS of $1.35 to $1.55, excluding Special charges that are anticipated for 2020 (a)

  • (a) Special charges include the costs associated with the previously announced program to provide assistance to the North America franchise system, including franchise royalty relief and National Marketing Fund investments, both of which are expected to end in the third quarter of 2020.

• North America comparable sales of 2.5% to 5.0%
• International comparable sales of 1.5% to 4.0%
• Net global new unit growth of 100 to 140 net units
• Income tax rate of 20% to 23%
• Block cheese prices are projected to be in the low to mid $1.80
• Capital expenditures of $40 million - $50 million

For earnings history and earnings-related data on Papa John's (PZZA) click here.