Tag - Pzza

The recession took away America's appetite for eating out. Yet it seems like the one affordable luxury for many families watching their pennies is pizza. A favorite for both young and old, pizza parlors have tried to keep their prices under control so that a family of four can enjoy a meal for around 20 bucks.

Many restaurants suffered greatly during the economic downturn. But for the most part the bigger pizza chains pulled through - often by way of discounting through coupons and plenty of in-your-face advertising..

One of the larger U.S. chains, Pizza Hut, is owned by international conglomerate Yum! Brands (NYSE: YUM). But two of the bigger and best-known pizza purveyors are actually small-cap stocks: Domino's Pizza (NYSE: DPZ) and Papa John's International (Nasdaq: PZZA).

Fuel Systems Solutions Inc. (Nasdaq:FSYS), athenahealth Inc. (Nasdaq:ATHN) and Allos Therapeutics Inc. (Nasdaq:ALTH) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Rambus Inc. (Nasdaq:RMBS), Elbit Imaging Ltd. (Nasdaq:EMITF), Liberty Media Corp. (Nasdaq:LCAPA), Zoltek Companies Inc. (Nasdaq:ZOLT), Papa Johns International Inc. (Nasdaq:PZZA) and Papa Johns International Inc. (Nasdaq:PZZA).

Small-cap stocks pushed higher Friday, gaining a boost from merger activity in the banking sector, a jump in restaurant shares and a lift from news of a rescue plan for automakers. All of those factors help offset sloppy action in commodities, and worries about retailer sales into a key shopping weekend. The Russell 2000 (NYSE:IWM) closed up 7.09, or 1.48%, at 486.26 and is now down 37% for the year. Meanwhile, the Dow is off 35% for 2088 and the S&P 500 is down 40%.

Small caps were noticeably strong relative to large caps, fueled by M&A activity in the banking area. “I think that the M&T Bank Corp. (NYSE:MTB) purchase of Provident Bankshares Corp. (Nasdaq:PBKS) has caused investors to see value in small-cap banks and the purchase came at a nice premium,” Nick Kalivas, vice president of financial research with MF Global, said in an email interview. PBKS shares jumped 60% on the news.

Kalivas also said that positive profit news from restaurant operator Darden Restaurants Inc. (NYSE:DRI) provided a lift to the restaurant sector, which was reflected through impressive positive breadth in small-cap eateries. Small-cap restaurants on the move today included Cheesecake Factory Inc. (Nasdaq:CAKE) which jumped 12%; Brinker International Inc. (NYSE:EAT) up 29% as the firm completed a sale of the Macaroni Grill; The Steak n Shake Co. (NYSE:SNS), up 12%; and Papa Johns International Inc. (Nasdaq:PZZA) up 8%.

In addition, Kalivas said that the general atmosphere of cheaper gasoline and a mini-wave of refinancing activity provides a supportive element to the small-cap universe.

As for today’s quadruple witching expirations of stock index futures, options and single stock futures, Kalivas said that “pinning” action (which refers to . . .

Papa John's International, Inc. (Nasdaq: PZZA) CEO Nigel Travis said lower consumer spending and higher commodity costs will continue to pressure the pizza delivery franchiser’s profits. Travis made the comments during a morning conference call.

“I couldn’t be more pleased with our fourth-quarter results, given the very challenging environment,” Travis said.

The chief executive said soaring wheat, cheese and dairy prices have pinched profits. Demand for ethanol has increased dairy costs while concerns about supply have boosted wheat costs.

After Tuesday’s closing, Papa John’s reported fourth-quarter net income of $7.7 million, or $0.27 per share, down from $19 million, or $0.59 per share, a year earlier.

Quarterly revenue increased 2% to $283.9 million, from $277.9 million during the prior-year period.

Excluding losses from the consolidation of a franchisee-owned cheese purchasing firm, Papa John’s earned $0.52 per share during the fourth quarter. The fourth quarter during 2006 benefited from an extra week of operations, making year-over-year comparisons difficult.

The Louisville, Ky.-based firm reaffirmed its 2008 profit outlook for earnings in the range of $1.68 to $1.76 per share, excluding one-time items and charges.

Papa John's International, Inc. (Nasdaq: PZZA) CEO Nigel Travis said the company expects increased revenue from higher royalty revenues in a new franchise agreement. Travis made the comments during the pizza delivery chain’s morning conference call.

The rate increases are designed to counteract higher commodity prices, he said, but will eventually add profit to Papa John’s balance sheet.

“After 2008, assuming a more normalized cost environment, we would expect the royalty rate increases to produce annual operating income at the rate of approximately $3.5 million to $4 million per quarter, most likely beginning in 2009,” Travis said.

Beginning in 2008, the firm’s franchise royalty rates will increase 4.25% and will increase an additional 0.25% at the beginning of 2009, 2010 and 2011. The additional income will allow Papa John’s to compete more effectively against the “much larger” marketing budgets of the company’s national competitors, he said.

CFO David Flanery said Papa John’s is “confident” it can achieve its earnings guidance by controlling general and administrative costs. The company raised its fiscal 2007 earnings to a range of $1.64 to $1.68 per share, from a previous range of $1.56 to $1.60 per share. The outlook excludes the impact of the consolidation of BIBP Commodities, Inc. Flanery noted that the impact of a tax issue during the third quarter added $0.08 earnings per share.

The firm’s debt outstanding at the end of the third quarter was $124.5 million, Flanery said.