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Papa Johns International Inc. (PZZA) Fundamental Analysis & AI Grade 2026

PZZA Nasdaq Retail-Eating Places DE CIK: 0000901491
Updated This Month • Analysis: May 9, 2026 • SEC Data: 2026-03-29
Combined AI Grade
D
92% Confidence
N/A
D
92% Conf
Pending
Analysis scheduled

📊 PZZA Key Takeaways

Revenue: $478.6M
Net Margin: 1.5%
Free Cash Flow: $-6.2M
Current Ratio: 0.84x
Debt/Equity: N/A
EPS: $0.21
AI Grade: D with 92% confidence
Papa Johns International Inc. (PZZA) receives a D fundamental grade with 92% confidence from our AI analysis based on SEC 10-K filings. With revenue of $478.6M, net profit margin of 1.5%, Papa Johns International Inc. demonstrates mixed fundamentals in the Consumer sector. Below is our complete PZZA stock analysis for 2026.

Is Papa Johns International Inc. (PZZA) a Good Investment?

Claude

Papa Johns exhibits critical financial distress with negative stockholders' equity of -$449.1M (liabilities exceed assets) and interest coverage of 0.8x, meaning operating income cannot service debt obligations. The combination of negative free cash flow (-$6.2M), declining revenue (-0.3% YoY), razor-thin net margins (1.5%), and liquidity stress (0.84x current ratio) indicates structural insolvency risk.

Papa Johns International Inc. Key Strengths (PZZA)

Claude
  • + Net income grew 3.3% YoY despite revenue pressure, showing marginal profitability improvement
  • + Positive operating cash flow of $7.2M demonstrates underlying business generates some cash
  • + Active insider Form 4 activity (18 filings in 90 days) indicates management engagement with capital structure

PZZA Stock Risks: Papa Johns International Inc. Investment Risks

Claude
  • ! Negative stockholders' equity of -$449.1M represents balance sheet insolvency with liabilities exceeding assets by nearly half a billion dollars
  • ! Interest coverage ratio of 0.8x critically below 1.0x threshold, indicating operating income insufficient to cover debt service payments
  • ! Negative free cash flow of -$6.2M with minimal cash reserves ($39M) against $727.3M long-term debt creates acute refinancing and liquidity risk

Key Metrics to Watch

Claude
  • * Debt restructuring outcomes and refinancing success - critical for near-term survival
  • * Interest coverage ratio trajectory - must exceed 1.0x to sustainably service obligations
  • * Free cash flow conversion - must achieve positive FCF to stabilize balance sheet
  • * Revenue growth reacceleration - current -0.3% contraction is unsustainable with thin margins

Papa Johns International Inc. (PZZA) Financial Metrics & Key Ratios

Revenue
$478.6M
Net Income
$7.3M
EPS (Diluted)
$0.21
Free Cash Flow
$-6.2M
Total Assets
$831.9M
Cash Position
$39.0M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

PZZA Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 4.3%
Net Margin 1.5%
ROE N/A
ROA 0.9%
FCF Margin -1.3%

PZZA vs Consumer Sector: How Papa Johns International Inc. Compares

How Papa Johns International Inc. compares to Consumer sector averages

Net Margin
PZZA 1.5%
vs
Sector Avg 8.0%
PZZA Sector
ROE
PZZA 0.0%
vs
Sector Avg 18.0%
PZZA Sector
Current Ratio
PZZA 0.8x
vs
Sector Avg 1.5x
PZZA Sector
Debt/Equity
PZZA 0.0x
vs
Sector Avg 0.8x
PZZA Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Papa Johns International Inc. Stock Overvalued? PZZA Valuation Analysis 2026

Based on fundamental analysis, Papa Johns International Inc. has mixed fundamental signals relative to the Consumer sector in 2026.

Return on Equity
N/A
Sector avg: 18%
Net Profit Margin
1.5%
Sector avg: 8%
Revenue Growth
N/A
Year-over-year
Debt/Equity
N/A
Sector avg: 0.8x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Papa Johns International Inc. Balance Sheet: PZZA Debt, Cash & Liquidity

Current Ratio
0.84x
Quick Ratio
0.72x
Debt/Equity
N/A
Debt/Assets
152.6%
Interest Coverage
0.78x
Long-term Debt
$727.3M

PZZA Revenue & Earnings Growth: 5-Year Financial Trend

PZZA 5-year financial data: Year 2022: Revenue $2.1B, Net Income $57.9M, EPS $1.28. Year 2023: Revenue $2.1B, Net Income $120.0M, EPS $0.12. Year 2024: Revenue $2.1B, Net Income $67.8M, EPS $1.89. Year 2025: Revenue $2.1B, Net Income $82.1M, EPS $2.48.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Papa Johns International Inc.'s revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $2.48 reflects profitable operations.

PZZA Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-1.3%
Free cash flow / Revenue

PZZA Quarterly Earnings & Performance

Quarterly financial performance data for Papa Johns International Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $478.6M $7.3M $0.21
Q3 2025 $506.8M $4.7M $0.13
Q2 2025 $507.9M $9.5M $0.28
Q1 2025 $513.9M $9.2M $0.27
Q3 2024 $506.8M $15.9M $0.48
Q2 2024 $507.9M $12.2M $0.37
Q1 2024 $513.9M $14.6M $0.44
Q3 2023 $510.5M $8.3M $0.23

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Papa Johns International Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$7.2M
Cash generated from operations
Capital Expenditures
$13.5M
Investment in assets
Dividends Paid
$15.3M
Returned to shareholders

PZZA SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Papa Johns International Inc. (CIK: 0000901491)

📋 Recent SEC Filings

Date Form Document Action
May 13, 2026 4 xslF345X06/doc4.xml View →
May 13, 2026 4 xslF345X06/doc4.xml View →
May 13, 2026 4 xslF345X06/doc4.xml View →
May 13, 2026 4 xslF345X06/doc4.xml View →
May 13, 2026 4 xslF345X06/doc4.xml View →

Frequently Asked Questions about PZZA

What is the AI rating for PZZA?

Papa Johns International Inc. (PZZA) has an AI grade of D with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are PZZA's key strengths?

Claude: Net income grew 3.3% YoY despite revenue pressure, showing marginal profitability improvement. Positive operating cash flow of $7.2M demonstrates underlying business generates some cash.

What are the risks of investing in PZZA?

Claude: Negative stockholders' equity of -$449.1M represents balance sheet insolvency with liabilities exceeding assets by nearly half a billion dollars. Interest coverage ratio of 0.8x critically below 1.0x threshold, indicating operating income insufficient to cover debt service payments.

What is PZZA's revenue and growth?

Papa Johns International Inc. reported revenue of $478.6M.

Does PZZA pay dividends?

Papa Johns International Inc. pays dividends, with $15.3M distributed to shareholders in the trailing twelve months.

Where can I find PZZA SEC filings?

Official SEC filings for Papa Johns International Inc. (CIK: 0000901491) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is PZZA's EPS?

Papa Johns International Inc. has a diluted EPS of $0.21.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is PZZA's fundamental grade?

Based on our AI fundamental analysis in May 2026, Papa Johns International Inc. has a D grade with 92% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is PZZA stock overvalued or undervalued?

Valuation metrics for PZZA: ROE of N/A (sector avg: 18%), net margin of 1.5% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.

What is PZZA's AI grade for 2026?

Our dual AI analysis gives Papa Johns International Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is PZZA's free cash flow?

Papa Johns International Inc.'s operating cash flow is $7.2M, with capital expenditures of $13.5M. FCF margin is -1.3%.

How does PZZA compare to other Consumer stocks?

Vs Consumer sector averages: Net margin 1.5% (avg: 8%), ROE N/A (avg: 18%), current ratio 0.84 (avg: 1.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 9, 2026 | Data as of: 2026-03-29 | Powered by Claude AI