Papa John's (NASDAQ: PZZA) reported Q3 EPS of $0.35, $0.03 better than the analyst estimate of $0.32. Revenue for the quarter came in at $472.94 million versus the consensus estimate of $466.15 million.

Highlights

• Company revenues increased 17.1% compared to third quarter of 2019
• Comparable sales increased 23.8% in North America and 20.7% Internationally in the third quarter
• Earnings per diluted share increased to $0.35 compared to third quarter 2019 loss per diluted share of ($0.10)
• Cash flow from operations of $168.5 million and free cash flow of $134.0 million for the first nine months of 2020
• Previously announced temporary franchise support program ended in the third quarter, concluding a $55 million investment in the system over the past four quarters
• New $75 million share repurchase program authorized

“Thanks to our focus on our strategic priorities, our commitment to an innovation mindset, and our dedication to supporting our team members and franchisees, Papa John’s delivered another quarter of outstanding results,” said President & CEO Rob Lynch. “Double-digit comparable sales growth, dramatically higher earnings and robust free cash flow all reflect a winning strategy and execution that have helped us outperform our competition and deliver five straight quarters of same store sales growth.”

Mr. Lynch continued, “The new share repurchase program demonstrates our commitment to value creation in the near and long term, as well as our confidence in Papa John’s future. The tremendous progress we have made this year – a fast-growing customer base, a truly differentiated brand, a robust innovation pipeline and a vast global development opportunity – positions us to continue expanding our slice of the pizza and food delivery market, which itself has a promising future. Looking ahead, we are excited to continue taking care of our team members and customers, delivering great pizza, and realizing our tremendous potential.”

New $75 million Share Repurchase Authorization

On November 4, 2020, our Board of Directors approved a new share repurchase program for up to $75 million of the company’s common stock, effective through December 31, 2021. This represents approximately 3.0% of the company’s currently outstanding common stock based on the closing price of the stock as of November 4, 2020. The timing and volume of share repurchases may be executed at the discretion of management on an opportunistic basis, subject to market and business conditions, regulatory requirements and other factors, or pursuant to trading plans or other arrangements. Repurchases under the new program may be made through open market, block, and privately negotiated transactions, including Rule 10b5-1 plans, at times and in such amounts as management deems appropriate. Repurchases under the company’s share repurchase program may be commenced or suspended from time to time at the company’s discretion without prior notice.

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