Here's a
weird analyst theory on why
Americans are
eating more pizza
Papa John's International Inc. is poised to perform well as civil and political disruptions ahead of a contentious U.S. election prompt
Americans to stay in rather than eat out, according to KeyBanc
analyst Chris O'Cull.
The
analyst upgraded the stock to "overweight" from "sector weight" and upped his price target to $80, which is the highest among analysts surveyed by Bloomberg.
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Papa John's tumbles on sales miss, tepid profit outlook
On the heels of this upgrade, the stock is up
more than 3 percent as of 11:00 a.m. New York time:*
Image: Bloomberg
"After speaking with several large operators and industry contacts, we believe the recent decline in casual dining restaurant*segment fundamentals—traffic down 3-5 percent the past several weeks—may be the result of consumers
eating more at home amid the current political/social backdrop, which we believe could last through the **vember election," he writes. "We do **t believe the consumer has 'entrenched,' but has likely shifted
more in favor of convenience, benefiting
pizza delivery operators like Papa John's."
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