Papa John’s went public in 1993. Since then, it has achieved impressive performance. People have continued to love eating pizza, so it is probably no surprise that the stock has tended to be a good bet. Understanding some of the trends that have defined Papa John’s, especially in the past few years could help guide your investment strategy.
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How Papa John’s Stock Has Grown Ever Since Going Public
When Papa John’s had its IPO, the initial shares were offered at $13, and the price closed at $20 at the end of the first day. There have since been several stock splits so that $20 price is equal to about $2.25. In August of 2021, the stock exceeded $125. This represents a growth of more than 5,500% since opening, significantly outperforming both Dow Jones and the S&P 500 during the same timeframe.
Like all stocks, Papa John’s has had some volatility. However, it has tended to follow an upward trajectory ever since the IPO. The most notable downturn was between 2016 and early 2019. During this time, the original Papa John’s ownercaused several controversies that hurt sales and led to the end of a lucrative relationship with the NFL.
Fortunately, with a few changes and under the leadership of Papa John’s new CEO, the stock has rallied significantly, gaining more than 150% and far exceeding its peak before the downturn. The story of Papa John’s stock success is grounded in its pizza and its restaurant model. People can find reliably good pizza from a wide variety of locations. Plus, they can order online and customize their pizzas in a variety of ways. This has tended to result in consistently good sales. Plus, the brand has tended to have strong returns on advertising, including some spots with Shaq.
Papa John’s Earning Expected To Remain Strong After COVID 19
According to the new Papa Johns CEO, earnings are expected to be strong as COVID-19 calms down. With many people in their homes, delivery services had excellent performance. Pizza is a strong favorite for anyone who has to feed multiple people and wants delivery or takeout.
This is expected to continue. Earnings have continued to be strong even as people return to working in-person and various COVID-related restrictions ease as more and more people get vaccinated. Pizza is a great food for gatherings and many people are more excited than ever to start getting together with their friends and loved ones.
Many analysts have set strong price targets for the stock based on its earnings and overall strength. The brand has made some excellent investments to help to ensure that it will continue to perform well. Overall, the future looks bright for Papa John’s.
Discover More About Papa John’s Stocks Today
Learn more about Papa John’s and its stock performance. Thanks to consistency in its restaurants, the brand has achieved consistency on the stock market. Between new leadership and great performance during the COVID pandemic, Papa John’s appears to be on a positive trend. Consider adding the stock to your portfolio today.