Actionable news
0
All posts from Actionable news
Actionable news in PZZA: Papa John'S International, Inc.,

Papa John’s results could get sidelined by NFL anthem protests

Papa John’s, the official pizza sponsor of the NFL, says sales are down along with football viewership

Instinet analysts led by Mark Kalinowski have cut their earnings forecast and price target for shares of Papa John’s International Inc. on concerns that viewership declines of National Football League games could hurt sales.

Instinet lowered its third-quarter earnings per share forecast to 59 cents from 62 cents, and shaved 100 basis points from its combined North America company-owned and franchised same-store sales guidance to 1.1% growth. Analysts cut the same amount, 100 basis points, from separate company-owned and franchised same-store sales guidance as well.

The FactSet consensus is for third-quarter EPS of 60 cents and same-store sales growth of 1.3%.

Papa John’s PZZA, -1.86% is expected to announce third-quarter earnings on Oct. 31, after the closing bell.

“NFL spokesman Joe Lockhart has confirmed that multiple official sponsors of the league – including Papa John’s – have expressed concerns to the NFL about how sliding TV viewership in the 2017 season relative to 2016 has affected these sponsors’ business,” Instinet wrote in a note. “Specific to Papa John’s, it has been reported that Papa John’s has directly informed the NFL that its sales during the times NFL games are being played and broadcast are down year-over-year.”

Instinet maintains its neutral rating on Papa John’s shares. Its price target was reduced to $71 from $78.

NFL players, inspired by former San Francisco 49ers quarterback Colin Kaepernick, have protested police brutality and racial injustice by not standing before or during the national anthem. The protests have sparked responses from NFL team owners and President Donald Trump, who has insisted in a multitude of tweets and speeches that players should either stand for the anthem or be fired.

SBNation has a timeline of the protests and how they have spread across other sports.

NFL viewership has declined nearly 8% this season according to the latest Nielsen numbers. In direct response, DirecTV has let some customers cancel subscriptions to the Sunday Ticket package if the national anthem protests are cited as the reason. DirecTV is part of AT&T Inc. T, -1.27%

Instinet first lowered its third-quarter same-store sales forecast on Oct. 4 based on a “general sluggishness in the domestic chain restaurant industry” that extended into the third quarter and “Papa John’s status as the official pizza sponsor of the National Football League, in the context of the NFL’s season-to-date TV ratings decline.”

Papa John’s shares are nearly flat in Friday trading, and down about 20% for the year so far. The S&P 500 index SPX, -0.32% is up 15.2% for 2017 to date.


More