1 month ago
Stock Market

Papa John’s Stumbles Midday on Price War Worries

Investing.com - Shares of Papa John’s fell midday following an analyst downgrade on concerns the pizza chain is ill-equipped to

Investing.com - Shares of Papa John’s fell midday following an analyst downgrade on concerns the pizza chain is ill-equipped to face a current price war.

Papa John's (NASDAQ:PZZA) stock fell 2.8% in midday trading.

Stifel Nicolaus downgraded the stock to sell from hold and issued a price target of $35 to $38, according to Briefing.com. Shares are currently trading around $44.

The chief reason from the downgrade is that Papa John’s is likely to have to continue discounting and promotions, which will hurt its “already low profitability,” Stifel said.

Also in the sector, Domino’s Pizza (NYSE:DPZ) fell 1%, while Pizza Hut operator Yum! Brands (NYSE:YUM) rose 0.5%.