Papa John's International Inc. Common Stock (PZZA)

FairStock Score: 29/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see Papa John's as a franchised pizza system with a commissary supply arm, which can be a decent business because royalties and food sales can generate cash without owning every store. But the recorded numbers do not yet show a durable moat: in fiscal 2025, the year ended 2025-12-28, revenue was $2.1B, net income $30.5M, and diluted EPS $0.90, down sharply from fiscal 2024 ended 2024-12-29, when net income was $83.5M and EPS $2.54. In the latest quarter, fiscal Q2 2026 ended 2026-06-28, revenue was $482.4M and net income $8.5M, a 1.77% margin; that compares with $529.2M revenue and $9.5M net income in fiscal Q2 2025 ended 2025-06-29. The first quarter of fiscal 2026 ended 2026-03-29 had $478.6M revenue and $7.3M net income, so there was modest sequential improvement, but the trend is still weak. On FairStock calculations from the close on 2026-10-26, the price of $18.23 gives a P/E of 22.79, EV/EBITDA of 8.51, FCF yield of 4.1% on $24.6M trailing free cash flow, ROCE of 9.09%, Piotroski 6/9, and Altman Z-score of 1.25. That is not a classic Graham bargain with a margin of safety; the multiple is high against depressed earnings and the balance-sheet score suggests caution. I would want to see sustained profit recovery and stronger cash generation before calling the business robust.

In plain English: Papa John's sells and franchises pizza restaurants and supplies food products to its restaurant system. The business looks weak right now: fiscal 2025 profit fell sharply from fiscal 2024, and the latest quarter had very little profit relative to sales. At the $18.23 close on 2026-10-26, the price looks fair to expensive relative to those earnings rather than clearly cheap.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-28) · fiscal Q1 2026 10-Q (period ended 2026-03-29) · fiscal Q3 2025 10-Q (period ended 2025-09-28) · fiscal Q2 2025 10-Q (period ended 2025-06-29) · FY2025 10-K (period ended 2025-12-28) · FY2024 10-K (period ended 2024-12-29) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer