2/26, 3:12 PM (Source: TeleTrader)
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Papa John’s shuts down 50 stores in China due to coronavirus

Papa John's International Inc. announced on Wednesday it had to close about 50 franchised stores in China, as the coronavirus outbreak has spread across China as well as around the globe. The newest reports showed that more than 81,100 people got infected with the virus worldwide, while more than 2,700 people died.

On the positive note, Papa John’s reported today that its fourth quarter earnings beat expectations pushed up by strong comparable stores sales. The company said its revenue amounted to $417.5 million in the fourth quarter of 2019 from $403.8 million expected. System-wide North America comparable sales increased by 3.5% for the fourth quarter, while International comparable sales were up 2.4% in the same quarter.

In its 10-K regulatory filing with the Securities and Exchange Commission on Wednesday, the company stated, "there is significant uncertainty relating to the potential effect of coronavirus on our business," also adding, "infections may become more widespread, including to other countries where we have operations, which could have a negative impact on our business and operating results."

Breaking the News / BJ