Is the business good?
How good a business is PZZA?
Papa John's International, Inc. earns 27% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
27%
Return on invested capital · cost of capital 9.0% · 18 points above what the capital costs: growth creates value
- Operating margin
- 4.3%
Operating margin · Restaurants median 8.6% · 12 months to Q1 2026
- Cash conversion
- 1.26×
Cash conversion · 0.70× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.38%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 5.0% |
| FY2021 | 8.1% |
| FY2022 | 5.2% |
| FY2023 | 6.9% |
| FY2024 | 7.6% |
| FY2025 | 4.3% |
Details›
- Gross margin12 months to Q1 2026
- 29%
- Operating margin12 months to Q1 2026
- 4.3%
- Net margin12 months to Q1 2026
- 1.4%
- Free cash flow margin
- 1.8%
- Revenue, trailing twelve months
- $2.01B
- Free cash flow, trailing twelve months
- $36M
- Net income, trailing twelve months
- $29M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 27%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.