Papa John's International Inc. (Papa John's (PZZA)) is getting ready for a big movie tie-in. On Wednesday, the pizza chain announced a global collaboration with Disney and Pixar to celebrate the release of Toy Story 5, which hits theaters on June 19. The partnership includes special promotions like Toy Story 5 personal pizzas and limited-edition collectibles, which could give sales a nice boost.
This isn't just a small in-store poster. The collaboration is a significant marketing push for Papa John's. Starting in Canada, customers can grab a Toy Story 5 personal pizza for $9.99 when they order two or more. The idea is to tap into the nostalgia and excitement around the beloved franchise to drive customer engagement and, ultimately, sales growth.
But while the marketing sounds fun, the stock's technical picture is a bit less cheerful. As of Wednesday, shares were trading at $32.54, which is 3.6% below the 20-day simple moving average of $33.78 and 6% below the 50-day SMA of $34.61. The MACD is below its signal line, suggesting momentum is fading. In plain English, the stock needs to reclaim those moving averages to regain upward traction.
Earlier this month, Papa John's reiterated its 2026 outlook. The company expects global system-wide restaurant sales to be flat to down low single digits. North America comparable sales are forecast to decline 2% to 4%, while international comparable sales are expected to rise 2% to 4%. That's a mixed bag, but the international growth is a bright spot.
On the expansion front, Papa John's plans 40 to 50 gross openings in North America and 180 to 220 international gross openings in 2026. Financially, the company continues to expect adjusted EBITDA of $200 million to $210 million, adjusted depreciation and amortization of $70 million to $75 million, and net interest expense of $35 million to $40 million. The GAAP effective tax rate is projected at 30% to 34%, with capital expenditures of $70 million to $80 million and about 33 million diluted shares outstanding.
