LOUISVILLE, Ky. (WDRB) – Louisville-based Papa John’s International’s domestic restaurant sales jumped 33.5% in the last four weeks compared to the same time a year earlier -- the pizza chain’s second-consecutive of month of record sales growth.
Papa John’s released sales data for the April 27-May 24 period on Wednesday, about two months earlier than it would normally report those results.
Papa John’s’ biggest competitor, Ann Arbor, Michigan-based Domino’s Pizza, disclosed Tuesday that its U.S. sales were up 22% during the April 20-May 17 period.
“We entered the pandemic with strong growth and momentum, and are fortunate that our delivery and carry-out model has enabled us to meet an essential need for high quality food, safely delivered to consumers’ homes,” Papa John’s CEO Rob Lynch said in a press release.
The company said earlier this month that April sales at its U.S. and Canada restaurants had jumped 27% as consumers turned to pizza delivery amid the coronavirus pandemic.
Chris O’Cull, a restaurant industry analyst with investment bank Stifel, said in a note to clients Wednesday that the rebound at Papa John’s is not entirely due to consumers’ shift to dining at home. He said it also reflects the success of new menu items such as the calzone-like Papadia sandwich.
“We continue to believe Papa John's has a sustainable runway for comparable sales growth beyond the tailwind created by the pandemic's impact on usage,” O’Cull said in the note.
Lynch, who took over in August 2019 after running the Arby’s chain, is trying to lead Papa John’s beyond the tumult of its acrimonious 2018 split with founder John Schnatter.
Same-store domestic sales plunged 7.3% in 2018 and another 8.1% in 2019. Papa John’s reported a 5.3% rebound in the first quarter of 2020. Stifel predicts 29% growth during in the April-June quarter.
