BofA downgrades Papa John’s to Underperform, slashes price target to $34

Investing.com·13 Jul 2026·Read original

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Bank of America downgraded Papa John’s International to Underperform from Neutral and cut its price objective to $34 from $42, citing growing uncertainty over the pizza chain’s turnaround following the departure of its chief financial officer and intensifying competitive pressures. The brokerage said the exit of CFO Ravi Thanawala, who is leaving for a role at American Eagle Outfitters after less than three years, raises doubts about the likelihood of a near-term recovery in same-store sales. BofA added that the management change could reduce earnings visibility at a critical stage of the company’s turnaround efforts. The firm also warned that competition in the U.S. pizza market has intensified, with larger rival Domino’s benefiting from greater scale, lower operating costs and stronger franchise economics. Reflecting weaker demand trends, the brokerage lowered its second-quarter North American same-store sales growth forecast to a 6.7% decline from a 6.4% decline previously, while trimming its international growth estimate to 2.5% from 3.5%, and reduced its 2026 adjusted EBITDA forecast to about $199 million from $204 million, below the company’s guidance range of $200 million to $210 million.

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