Optimistic Long-Term Outlook for Papa John’s Amidst Near-Term Challenges

In a report released today, Andrew Strelzik from BMO Capital maintained a Buy rating on Papa John’s International (PZZA – Research Report), with a price target of $60.00.

Andrew Strelzik has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Papa John’s International. Despite the company’s 2025 guidance falling short of consensus expectations, particularly in unit growth and EBITDA, Strelzik remains optimistic about the long-term potential of the brand. He acknowledges the current competitive and consumer challenges but emphasizes the company’s focus on the right areas, which supports his confidence in the brand’s future prospects.
Strelzik points out that while domestic sales trends are under pressure, there are early signs of progress, with improvements in transaction declines and encouraging trends in international markets. He also notes that the company’s shares are trading at a discounted valuation, which presents a favorable risk/reward scenario. The potential for strategic actions, such as refranchising U.S. stores, could further support the company’s turnaround efforts, making the stock an attractive buy despite near-term challenges.

In another report released today, Wedbush also maintained a Buy rating on the stock with a $60.00 price target.