Papa John's needs a buyer, and fast, say analysts

Papa John's International Inc.

PZZA, + 4.43%

needs a buyer, say Stifel analysts headed by Chris O. Cull. The pizza delivery company, which has been fighting for months against its founder, John Schnatter, has announced a loss of 41 cents per share, after profits of 60 cents per share last year and an adjusted EPS of 20 cents . Sales of $ 364.0 million decreased from $ 431.7 million last year. Both results missed the FactSet consensus for EPS of 22 cents and sales of $ 391.0 million. Comparable store sales in North America decreased by 9.8%, while FactSet was down 10.6%. Shares have risen 37.6% over the past three months, a rise attributed by Stifel to investor expectations regarding the company's acquisition. There has been speculation on a buyout, but the company did not comment on it at the earnings call Tuesday night. "[G]Given the deterioration in fundamentals, investors need the company to quickly find a buyer. According to us, "Stifel wrote".[W]We believe that poor fundamentals have led the company's board to seek strategic alternatives, including the company's sales. "Stifel maintains its stock rating to retain due to the potential for redemption.Stifel's price target is $ 48. BTIG also retains its neutral rating." I think a lot of effort remains to be done to regain consumer confidence, support the franchise economy and avoid unit closures, "analysts explain. We expect these efforts to weigh on profitability and cash flow. "Papa John's shares are up 5.6% on Wednesday trading, but down 2% over the past year." The S & P 500 Index

SPX, + 1.62%

is up 7.6% for the last 12 months.

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