One of the leading pizza delivery companies,
Papa John's International Inc.
) is set to report second-quarter 2014 results on Aug 5, 2014. In
the last quarter, the company posted in- line results. Let's see
how things are shaping up for the upcoming announcement.
Why a Likely Positive Surprise?
Our proven model shows that Papa John's is likely to beat
earnings because it has the right combination of two key
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, stands at +4.88%. This
is very meaningful and a leading indicator of a likely positive
earnings surprise for the company.
Papa John's has a Zacks Rank #2 (Buy). Note that stocks with Zacks
Ranks #1 (Strong Buy), #2 (Buy) and #3 (Hold) have a significantly
higher chance of beating earnings. The Sell-rated stocks (#4 and 5)
should never be considered going into an earnings announcement.
The combination of Papa John's Zacks Rank #2 and ESP of +4.88%
makes us confident of an earnings beat on Aug 5.
What is Driving the Better Than Expected
Papa John's' has been consistently delivering positive comps
domestically as well as in the international markets over the past
few quarters. The company's brand revitalization initiatives such
as unit expansion and international expansion have contributed
significantly to its comps growth.
The company is also investing in technology-driven initiatives
like digital ordering in order to capitalize on the digital wave
that has hit the U.S. fast casual restaurant sector. As a matter of
fact, total domestic digital sales were more than 45% in the first
Moreover, limited time offerings and menu innovation continue to
play an important part in generating revenues. We expect these
initiatives to continue to drive sales in the second quarter as
Other Stocks to Consider
Here are some other companies in the restaurant sector that
investors may consider, as our model shows that they have the right
combination of elements to post an earnings beat this quarter:
Zoe's Kitchen, Inc. (
), with an Earnings ESP of +50.0% and a Zacks Rank #2.
Jack in the Box Inc. (
), with an Earnings ESP of +3.51% and a Zacks Rank #3.
Texas Roadhouse, Inc. (
), with an Earnings ESP of +3.03% and a Zacks Rank #3.
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PAPA JOHNS INTL (PZZA): Free Stock Analysis
JACK IN THE BOX (JACK): Free Stock Analysis
TEXAS ROADHOUSE (TXRH): Free Stock Analysis
ZOES KITCHEN (ZOES): Free Stock Analysis Report
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