Positive Outlook for Papa John’s: Strategic Initiatives and Market Gains Support Buy Rating

Analyst Todd Brooks of Benchmark Co. maintained a Buy rating on Papa John’s International (PZZA – Research Report), retaining the price target of $50.00.

Todd Brooks has given his Buy rating due to a combination of factors that indicate positive future prospects for Papa John’s International. The company’s strategic initiatives and increased reinvestment in the business are starting to show results, as evidenced by sequential improvements in sales and transactions in the first quarter of 2025. The brand has also gained market share, demonstrating the effectiveness of its pricing strategy and promotional efforts.
Furthermore, management’s commitment to continued investment in advertising and operational improvements, such as oven recalibration, is expected to drive product innovation and enhance customer satisfaction. These efforts are anticipated to create a tailwind for same-store sales growth in the latter half of 2025. Despite some short-term earnings headwinds due to increased spending, the long-term outlook appears promising, supporting the Buy rating and a $50 price target.

According to TipRanks, Brooks is an analyst with an average return of -5.9% and a 35.33% success rate. Brooks covers the Consumer Cyclical sector, focusing on stocks such as Cracker Barrel, Texas Roadhouse, and El Pollo LoCo.

In another report released on May 9, Loop Capital Markets also maintained a Buy rating on the stock with a $56.00 price target.