The company just posted a 12-cents-a-share earnings beat that included a 7% boost in same-store sales.
Lynch explained that results like these have been two years in the making. Product innovation is what keeps people coming back to Papa John's. The loyalty program now stands at over 22 million members.
Papa John's is not trying to sell the cheapest pizza, Lynch continued. They only sell quality products made from the best ingredients.
Lynch said that staffing will always be Papa John's biggest challenge, but it's getting easier to retain great people and franchisees.
Let's check out the menu and the charts.
In this daily bar chart of PZZA, below, we can see that prices soared in November ahead of the latest quarterly figures. Prices are above the now rising 50-day moving average line as well as the positively sloped 200-day line.
The daily On-Balance-Volume (OBV) line shows an uptrend for the past 12 months and that tells us that buyers have been more aggressive the past year.
The Moving Average Convergence Divergence (MACD) oscillator is now crossing back above the zero line for a new outright buy signal.
In this weekly Japanese candlestick chart of PZZA, below, we can see a strong rally over the past three years. Prices are trading firmly above the rising 40-week moving average line.
The weekly OBV line is bullish. The MACD oscillator is well above the zero line and in the process of crossing upwards to a new buy signal.
In this daily Point and Figure chart of PZZA, below, we can see a potential upside price target in the $181 area.
In this weekly Point and Figure chart of PZZA, below, we used a five box reversal filter. Here the software has generated a price target in the $222 area. That's a lot of pizza!
Bottom line strategy: In full disclosure I have never tried a Papa John's pizza but there is always tomorrow. Meanwhile, the charts of PZZA are bullish and traders should approach from the long side around $132 if available. Risk down to $124. The $181 area is our first price objective.