Papa John's International, Inc. (NASDAQ:PZZA) reported a first-quarter fiscal 2024 decline of 2.5% year-over-year to $513.92 million, missing the consensus of $544.45 million.
The company reported first-quarter adjusted earnings per share of 67 cents, beating the street view of 57 cents.
North America comparable sales were down 2%, and International comparable sales were down 3% YoY. In the quarter under review, the firm witnessed 8 net unit openings.
The global system-wide restaurant sales were $1.23 billion, down 0.9% YoY, due to the prior year's first quarter having a ~$9.9 million benefit from the high-volume week between Christmas and New Year, which occurs in the fiscal fourth quarter in 2024.
Adjusted operating income of $43 million increased 10% on improved restaurant-level margins and continued focus on cost discipline.
PZZA's net cash provided by operating activities was $11.987 million, down from $40.788 million a year ago. Free cash outflow stood at $(1.07) million.
"Our teams are taking a disciplined approach to running the business, improving restaurant-level margins and increasing operating profits despite a challenging environment in the first quarter," said Ravi Thanawala, Papa Johns Interim Chief Executive Officer and Chief Financial Officer.
As of March-end, 5,914 Papa John's restaurants were operating in 49 countries and territories.
Price Action: PZZA shares are trading lower by 4.73% at $54.43 at the last check Thursday.