Papa John's InternationalFRA:PP1 -1.90%65 Gross Margin % is 28.77% as of Mar. 2026, which is 47% above its 10-year median of 19.55. GuruFocus rates FRA:PP1 with a GF Score™ of 65/100 and a GF Value™ of €38.50 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 357 Restaurants companies, Papa John's International ranks worse than 85.15% on this metric.
Papa John's International (FRA:PP1) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Papa John's International had a gross margin of 28.77% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Papa John's International Gross Margin % Related Terms
Papa John's International Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:PP1 vs CBRL, BJRI, BH: Gross Margin % Comparison
For the Restaurants subindustry, Papa John's International's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Papa John's International Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Papa John's International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Papa John's International's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Papa John's International (FRA:PP1) has a Gross Margin % of 28.77% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Papa John's International and its competitors. This is 47% above median its historical median of 19.55. Over the past decade, Papa John's International's Gross Margin % has ranged from 16.34 to 24.49. According to the industry distribution chart, Papa John's International ranks #304 out of 357 companies in the Restaurants industry, placing it in the top 85.2%.
Is Papa John's International's Gross Margin % too high?
Papa John's International's current Gross Margin % of 28.77% is 47% above median its 10-year median of 19.55. Over the past 10 years, this metric has ranged from a low of 16.34 to a high of 24.49. The Restaurants industry median Gross Margin % is 45.71. Papa John's International's value of 28.77% is 37.1% below this industry median. Based on the distribution chart, Papa John's International ranks #304 out of 357 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Papa John's International has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Papa John's International's Gross Margin % compare to CBRL and BJRI?
According to the Restaurants industry distribution chart, Papa John's International ranks #304 out of 357 companies for Gross Margin %. This places Papa John's International in the lower half of its industry. The industry median Gross Margin % is 45.71. Papa John's International's value of 28.77% is 37.1% below this benchmark. Historically, Papa John's International's own Gross Margin % has ranged from 16.34 to 24.49 over the past decade. While the company's 10-year median is 19.55 vs. the industry median of 45.71, Papa John's International has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.71, based on 357 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Papa John's International's current Gross Margin % of 28.77% is 37.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Papa John's International and its competitors. For the Restaurants industry, the median Gross Margin % is 45.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Papa John's International's current Gross Margin % is 28.77%, which is 47% above median its own 10-year median of 19.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Papa John's International stock overvalued right now?
Based on GuruFocus' analysis, Papa John's International (FRA:PP1) is currently considered Modestly Undervalued. The stock's GF Value™ is €38.50, compared to a current price of €31.00 — trading 19.5% below its estimated fair value. The current Gross Margin % is 28.77%, which is 47% above median its 10-year median of 19.55 and 37.1% below the Restaurants industry median of 45.71. Papa John's International's overall GF Score™ is 65/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Papa John's International (FRA:PP1), the current Gross Margin % is 28.77% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Papa John's International (FRA:PP1) Overvalued in 2026?
Based on GuruFocus' analysis, Papa John's International stock appears to be undervalued.
The current stock price of €31.00 is trading 19.5% below its estimated GF Value™ of €38.50.
GuruFocus considers Papa John's International to be Modestly Undervalued.
Key valuation signals for FRA:PP1:
Gross Margin %: 28.77% (47% above median its 10-year median of 19.55)
GF Value™: €38.50 vs. price of €31.00 (19.5% below fair value)
Industry Position: 37.1% below the Restaurants median (#304 of 357)
No single metric tells the full story. See the FRA:PP1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Papa John's International Inc operates and franchises pizza delivery and carryout restaurants and, in certain international markets, dine-in and delivery restaurants. It has four defined reportable segments: Domestic Company-owned restaurants, North America franchising, North America commissaries, and International. The company derives maximum revenue from North America commissaries segment. The North America commissaries segment consists of the operations of its regional dough production and product distribution centers in the United States and Canada and derives its revenues principally from the sale and distribution of food and paper products to Domestic Company-owned and franchised restaurants in the United States and Canada.
65GF Score
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