Papa Gino’s Pizza, Inc.: Earnings Update – 3Q18 results – NYT
New York (AP) Papa Ginos Pizza, the family-owned chain of Italian-inspired pizza shops, is expected to report quarterly results Monday that are expected to beat Wall Street estimates and could put the company on track for $4.3 billion in sales for the year.
The company said in an earnings release Monday that it will report adjusted earnings per share of $0.24, excluding the effect of foreign currency gains.
That would be the best-ever quarterly results for the family company.
Papa Gines said it expects to report adjusted revenue of $4 billion in the fiscal year ending Dec. 31, up from $3.6 billion in fiscal year 2016.
The family-run pizza chain has been on a roller coaster ride since its parent company, Papa John’s Pizza Inc., was sold in 2008 to Italy’s Italian conglomerate Pizzeria Napoletana for $1.9 billion.
The deal was finalized when Pizzagate, a scandal involving a conspiracy between Pizzerias Johnsons pizza delivery service and the Democratic National Committee, erupted.
The scandal also led to the resignation of the company’s CEO, Joseph Salerno, who was later named interim CEO.
Papa Johns Pizza was purchased by Papa John Schnatter, the heir to the namesake family fortune.
Papa Shuttles, the company that runs the pizzeria chain, has since expanded its delivery operations to include other Papa Schnatter-owned restaurants.
The firm reported earnings in the fourth quarter that were hurt by a reduction in revenue due to lower customer orders for pizza delivery services.
Papa Sizzlers, the parent company of Papa Gio’s Pizza and its other pizzeria chains, also saw its adjusted earnings decrease to $0 on a quarterly basis.
That said, Papa Sizzle, which has been operating with an additional $3 billion of debt to meet a $2 billion debt service, beat Wall St. estimates and was expected to achieve $4,000 in adjusted earnings for the quarter.
Papa Schnackens Pizza, a subsidiary of the family’s Pizzella, reported its second-quarter results in September and was also expected to earn an adjusted earnings of $1 per share.
“The Papa Schnacks franchisee results were solid in the quarter, reflecting the strong demand for Papa Schnackers pizza and the fact that it continues to grow,” said Jeff Pogue, chief financial officer at Papa Schnacker Corp., in a statement.
Papa Joes Pizza, owned by Pizzelleria, Inc., reported its third-quarter earnings in August and was expecting a second-half profit of $2.2 billion, down from $4 million a year earlier.
“With the increase in volume and sales growth, we expect to see more growth in the third quarter,” said Chris D’Agostino, a director at Nomura Securities LLC in a note to investors.
Papa Margherita Pizza, which operates the Pizzolatini’s pizza restaurant chain, reported results in July that were flat to down from the year before.
That loss came after the company announced it would not pursue an acquisition of Pizzelato’s parent company.
“We’re looking forward to having a better understanding of our earnings and operating performance going forward,” said David Sosna, chief executive officer of Papa Marghers.
Papa Maria Pizza, founded in 1996, has more than 400 restaurants in 22 states.
Papa Masi Pizza, headquartered in Naples, Italy, reported second-year results in June that were down from a year ago.
“Our sales growth was impacted by lower customer volumes and a decrease in the value of our franchisee inventory,” said Daniela Salerno-Gutiérrez, a senior vice president and general manager at Papa Masis Pizza, in a release.
The franchisee group, which owns about 5 percent of Papa Masys pizza business, is working on a merger with Papa Maria.
Papa Terra Pizza, based in Los Angeles, reported third-year earnings in June, up 19 percent from the previous year.
“This is good news for the company, as we are pleased with the growth we experienced during the year,” said Mike Tumulty, general manager of Papa Terra, in an email to investors, noting that Papa Terra has experienced strong growth in both the United States and Latin America.
Papa Tod, based on Staten Island, New York, reported fourth-quarter and full-year financial results in October.
That quarter included a $3 million loss due to the closure of the former Kmart stores, according to the company.
The news came after Papa Terra announced plans to expand its business beyond Kmart and open a new store in Florida.
Papa Pizza’s third- and fourth-year net income rose to $9.6 million, or $1,542 per share, from $936,000, or 56 cents per share in the year-ago quarter, according a company filing with the Securities and Exchange