Papa John's International, Inc. (NASDAQ:PZZA) shares are trading lower on Thursday.
The company reported adjusted earnings per share of 43 cents, in line with the street view. Quarterly sales of $506.81 million (down 3.1%) beat the analyst consensus estimate of $497.27 million.
"During the third quarter, we delivered earnings in line with our expectations in what continues to be a very challenging consumer environment," said Papa John's CEO Todd Penegor.
The lower revenues were mainly due to a $9.9 million decrease in international revenues from UK restaurants, an $8.5 million drop in domestic restaurant sales from lower transaction volumes, and a $4.8 million decrease from the sale of Preferred Marketing, the former print and promotions company.
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North America comparable sales were down 6% from a year ago. Domestic Company-owned restaurants were down 7%, and North America franchised restaurants were down 5%. International comparable sales were down 3% compared to the previous year.
Adjusted operating income was $29.3 million, a $4.3 million, or 12.9%, decrease from the same period a year ago.
The decrease in adjusted operating income for was mainly due to lower margins at Domestic Company-owned restaurants. This was because the company strategically reinvested some of its first-half savings to improve consumer value perception.
As of Sept. 29, there were 5,908 Papa Johns restaurants operating in 49 countries and territories.
Dividend: On Oct. 29, the firm declared a fourth-quarter dividend of 46 cents per common share. The dividend will be paid on November 29 to stockholders of record as of the close of business on November 18.
In a separate press release, the company announced the appointment of Jenna Bromberg to chief marketing officer, effective Nov. 14.
Price Action: PZZA shares are trading lower by 2.44% to $56.85 at last check Thursday.
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