Papa John’s International Inc. (NASDAQ:PZZA) on Wednesday said it is gearing up for a global collaboration with Disney and Pixar for the release of Toy Story 5, hitting theaters on June 19.
This partnership aims to celebrate the beloved franchise with special promotions, including Toy Story 5 personal pizzas and limited-edition collectibles, which could positively impact sales.
The collaboration with Disney and Pixar marks a significant marketing push for Papa John’s, featuring Toy Story 5 personal pizzas available across Canada starting at $9.99 when ordering two or more. This initiative is part of a broader strategy to leverage popular culture for brand engagement and sales growth.
Technical Analysis
Currently, the stock is trading at $32.54, which is 3.6% below its 20-day simple moving average (SMA) of $33.78 and 6% below its 50-day SMA of $34.61. The moving average convergence divergence (MACD) is below its signal line, indicating that momentum is fading, which suggests that the stock may face challenges in regaining upward traction unless it can reclaim that baseline.
Papa John’s recent collaboration with Disney and Pixar may drive customer engagement and sales during the promotional period.
As the company continues to innovate in its marketing strategies, its ability to capitalize on popular franchises like Toy Story could play a vital role in its growth trajectory.
Earlier this month, Papa John’s reiterated its 2026 outlook, expecting global system-wide restaurant sales to remain flat to down low single digits.
The company expects North America comparable sales to decline 2% to 4%, while international comparable sales are projected to rise 2% to 4%.
Papa John’s forecasts 40 to 50 gross openings in North America and 180 to 220 international gross openings during 2026.
The company continues to expect adjusted EBITDA of $200 million to $210 million, adjusted depreciation and amortization of $70 million to $75 million, and net interest expense of $35 million to $40 million.
Papa John’s also projects a GAAP effective tax rate of 30% to 34%, capital expenditures of $70 million to $80 million, and approximately 33 million diluted shares outstanding.
Earnings & Analyst Outlook
Papa John’s is slated to provide its next financial update on August 6, 2026 (estimated).
- EPS Estimate: 44 cents (Up from 41 cents)
- Revenue Estimate: $482.99 million (Down from $529.17 million)
- Valuation: P/E of 39.4x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $37.00. Recent analyst moves include:
- Stephens & Co.: Overweight (Maintains Target to $40.00) (May 15)
- Mizuho: Neutral (Lowers Target to $33.00) (May 11)
- Benchmark: Buy (Lowers Target to $45.00) (May 8)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Papa John’s International, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 28.95) — Trading at a steep premium relative to peers.
- Growth: Weak (Score: 13.46) — Limited growth indicators in the current market environment.
- Momentum: Weak (Score: 9.75) — Stock is underperforming the broader market.
The Verdict: Papa John’s International’s Benzinga Edge signal reveals a weak profile across key pillars, indicating challenges in both growth and momentum. Investors may need to exercise caution as the stock navigates its promotional strategies and broader market conditions.
Price Action
PZZA Stock Price Activity: Papa John’s International shares were up 1.44% at $33.17 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo via Shutterstock
