Q: Hi 5i,
Pls comment on Pizza Pizza Royalty earning result, stock dropped more than 10% at the time of writing. Would buy, hold or sell.
Thanks.
Pls comment on Pizza Pizza Royalty earning result, stock dropped more than 10% at the time of writing. Would buy, hold or sell.
Thanks.
5i Research Answer:
EPS of 22c missed estimates of 23c; revenue of $145.8M also missed estimates. Adjusted earnings fell slightly year over year. System sales also fell. PZA noted 'pressure on consumer spending, competition and softer demand'. Same store sales fell 4.1%. Payout ratio rose to 134% from 117%. These are pretty bad numbers, and the sales decline is concerning. Of course the payout ratio adds risk. We would be inclined to sell.