In order to continue the trend of returning wealth to its
shareholders, the board of directors of
Papa John's International Inc.
) increased the company's share repurchase authorization by
$100.0 million; to be bought back by Dec 31, 2014. With this
announcement, the company currently has $125.7 million available
In the last reported quarter (third quarter of 2013), the company
repurchased 0.15 million shares for a total cost of $10.3
million. The share repurchase enabled the company to record an
18.0% year-over-year increase in earnings per share in the third
In fact, during the period Sep 30, 2013 to Oct 28, 2013, Papa
John repurchased 0.074 million shares for $5.26 million. The
company had last increased its share repurchase authorization by
$25.0 million available through Mar 30, 2014 at its second
quarter 2013 earnings call.
The company also returns wealth to shareholders through
dividends. The company pays a regular quarterly cash dividend of
25 cents per share, which translates to an annualized dividend of
$1.00 per share.
During its third quarter earnings call, the company declared a
two-for-one split of the company's outstanding shares of common
stock in the form of a stock dividend. The stock dividend will be
distributed on Dec 27, 2013. Each shareholder as of Dec 12, 2013
is entitled to receive one additional share for every outstanding
share of common stock.
These strategies keep the stock attractive as they demonstrate
the company's growth potential and stable liquidity position.
Cash and cash equivalents as of Sep 30, 2013 was $13.7 million,
down from $28.2 million as of Jun 30, 2013 due to utilization of
cash for share buybacks. However, as of Sep 30, 2013, long-term
debt declined to $120.0 million from $133.2 million as of Jun 30,
Papa John's holds a Zacks Rank #2 (Buy). Other players in the
retail restaurant industry, which look attractive at current
Red Robin Gourmet Burgers Inc.
Cracker Barrel Old Country Store, Inc.
Bob Evans Farms, Inc.
). All these stocks carry the same Zacks Rank as Papa John.
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