Papa John’s Reports Second Quarter Results | Financial Buzz

Papa John’s Reports Second Quarter Results

Papa John’s (NASDAQ: PZZA) has grown rapidly amid the pandemic and its customers have multiplied as they are inclined to order in. The pizza company witnessed a 33.5% increase in same-store sales during May. In its second quarter report, Papa John’s revealed a North American system-wide comparable sales of 28% and an International comparable sales increase of 5.3%.

July represented a 31% increase in same-store sales. CEO Rob Lynch said that 70% of the orders were made digitally as mobile was its most popular platform. 

“We have a fully operational e-commerce platform … it’s really easy for customers to get food, which is what people are looking for during the pandemic,” Lynch said in an interview. “But the thing that we say is unique to us and the pizza industry, and that will sustain us coming out of the pandemic, is how customers are responding to our innovation.”

The speedy growth has allowed the chain to hire over 20,000 new workers in the quarter, according to Lynch. Additionally, he expects that the company will hire another 10,000 throughout the next three months, an unusual event during a pandemic. 

“These efforts position Papa John’s solidly to continue meeting the needs of our customers who face continued challenges from COVID-19,” he added, “and to drive long-term sustainable loyalty to our brand long after the current pandemic.”

As a result of the circumstances, the stock is currently the second-best performer within the restaurant industry, with Winstop coming in first. Nevertheless, shares did fall 2% after the earnings report, due to revenue being slightly below anticipated.