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Papa John’s lowers same-store sales outlook

Papa John’s lowers same-store sales outlook

Pizza chain also reduces expectations for earnings growth

Papa John’s International Inc. lowered its forecast for same-store sales in 2017 on Tuesday, after the Louisville-based chain’s North American same-store sales growth slowed to 1 percent in the third quarter ended Sept. 24.

The company now expects same-store sales to increase 1.5 percent in North America this year, down from its previous range of 2 percent to 4 percent.

The company also reduced its expectations for earnings growth this year. Papa John’s said that its diluted earnings per share will grow 3 percent to 7 percent this year, lower than its previous range of 8 percent to 12 percent.

Same-store sales increased 5.3 percent in international markets, the company said. That was the 30th straight month of growth.

Revenue in the quarter increased 2.2 percent to $431.7 million, from $422.4 million. Net income in the quarter increased 1.6 percent to $21.8 million, or 60 cents per share, from $21.5 million, or 57 cents.

Papa John’s exceeded expectations for revenue, and met investors’ expectations for earnings, according to the website Earnings Whispers.

The company’s stock fell more than 2 percent in after-hours trading on Tuesday.

Papa John’s operates 5,101 locations worldwide, including 3,441 in North America.

Contact Jonathan Maze at [email protected]

Follow him on Twitter: @jonathanmaze

TAGS: Sales Trends
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