Papa John’s Stock Price Jumps 7% On Rise in Sales

Shares of Papa John’s (NASDAQ:PZZA) are trading nearly 7% higher today, after the company reported that the same-store sales will rise 5.3% in Q1 in North America on the back of the booming fool delivery services.

Fundamental analysis: Sales rose, forward guidance withdrawn

Papa John’s, the fourth largest pizza delivery restaurant chain in the United States, said that the same-store sales in North America will rise 5.3%, comfortably beating the company’s earlier projections of 1.6%. Internationally, sales jumped 2.3%, again higher than the 1.6% projected earlier, for the period ending March 29.

Papa John’s is withdrawing the forward-looking guidance for 2020 due to the COVID-19 uncertainty, while the full first-quarter results will be published in the early May, the company anticipates.

The pizza chain also said that approximately 350 of its shops are closed worldwide, out of 2,100 it operates globally, including 15 locations in China.

Technical analysis: Stock holding up really well

Unlike the vast majority of the stock market, shares of Papa John’s are holding up really well given the overall situation. Following the creation of a 7-year low below the $30 handle last week, the stock price has rebounded nearly 100% from these lows.

As a result, the buyers are now testing the key short-term resistance, consisting of three different layers of resistance - 100-DMA at $51.57, the horizontal resistance, and 61.8% Fibonacci retracement near the $54 handle.

A close above this resistance block would pave the way for a trip above $60, where the 200-DMA is located, while the 30-month high sits at $70.17.

Summary

Shares of Papa John’s are trading more than 7% higher today after the pizza chain said its same-store sales rose 5.3% in North America, and 2.3% internationally, on the back of a surge in demand for food delivery. Moreover, the company is withdrawing 2020 guidance due to the uncertainty amid the COVID-19 outbreak.