Papa John's May See Increased Near-Term Uncertainty Due to Recent CFO Departure, BofA Securities Says
Papa John's International (PZZA) may see increased near-term uncertainty due to the recent departure of Ravi Thanawala as the company's chief financial officer, particularly at a time when Papa John's is trying to execute a turnaround, BofA Securities said in a Monday note. With competition intensifying in the pizza segment, BofA said it is lowering its Q2 same-store sales estimate to -6.7% from -6.4% for the North America segment and to 2.5% from 3.5% for the international segment. BofA also cut its adjusted EBIDA estimate to $199 million from $204 million previously, compared with full-year guidance of $200 million to $210 million. BofA lowered its rating on the company's stock to underperform from neutral and adjusted its price target to $34 from $42. Price: $32.52, Change: $-0.97, Percent Change: -2.91%
Papa John's International (PZZA) may see increased near-term uncertainty due to the recent departure of Ravi Thanawala as the company's chief financial officer, particularly at a time when Papa John's is trying to execute a turnaround, BofA Securities said in a Monday note.
With competition intensifying in the pizza segment, BofA said it is lowering its Q2 same-store sales estimate to -6.7% from -6.4% for the North America segment and to 2.5% from 3.5% for the international segment.
BofA also cut its adjusted EBIDA estimate to $199 million from $204 million previously, compared with full-year guidance of $200 million to $210 million.
BofA lowered its rating on the company's stock to underperform from neutral and adjusted its price target to $34 from $42.
Price: $32.52, Change: $-0.97, Percent Change: -2.91%