Pizza delivery chains are “better positioned” compared to other restaurant chains to navigate through the coronavirus pandemic, including Papa John’s Int’l, Inc. according to MKM Partners.

Brett Levy upgraded Papa John’s from Neutral to Buy with a price target lowered from $67 to $64.

The Papa John’s Thesis

Papa John’s is up 80% since bottoming on March 18 so the timing of the upgrade may appear to be “late to the game,” Levy wrote in the note. But there’s still upside from current levels after management provided “clear evidence” of same-store sales momentum in its Tuesday business update. This should give investors confidence that recent menu changes and initiatives are working.

From a financial point of view, Levy said recent momentum implies the head office is in a better place financially and structurally to support its franchisees if needed….CLICK for complete article