PZZA: Adding Papa Johns to Investing Ideas (Long Side)

01/02/20 10:11AM EST

Hedgeye CEO Keith McCullough is adding Papa Johns (PZZA) to the long side of Investing Ideas. Below is a brief note. 

Looking for more longs that you can buy this morning-to-date on red? 

Restaurants analyst Howard Penney remains bullish on the Papa Johns (PZZA) turnaround. Here's an excerpt from his Institutional Research:

Rob Lynch comes with an impressive CV as President of Arby's, where he led the fledgling brand's dramatic turn-around.  The other bit of good news with the press release was a reaffirmation of the 2019 guidance for N.A. comps down (4%) to (1%); International comps flat to +3%, and EPS of $1.00-$1.20.

Following the announcement of the new CEO, the sentiment has turned decidedly positive, 78% buy rating versus 50% at the start of 3Q19. I suspect the positive sentiment is driven by the CEO's turnaround experience and marketing expertise.
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