Papa John's InternationalFRA:PP1 +1.94%67 Interest Coverage is 2.49 as of Mar. 2026, which is 39% below its 10-year median of 4.09. GuruFocus rates FRA:PP1 with a GF Score™ of 67/100 and a GF Value™ of €38.49 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 262 Restaurants companies, Papa John's International ranks worse than 82.06% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Papa John's International's
Operating Income
for the
three
months ended in Mar. 2026 was €21 Mil. Papa John's International's Interest Expense for the
three
months ended in Mar. 2026 was €-8 Mil.
Papa John's International's interest coverage for the quarter that ended in Mar. 2026 was 2.49.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Papa John's International's Interest Coverage or its related term are showing as below:
FRA:PP1'
s Interest Coverage Range Over the Past 10 Years
Min: 0.96 Med: 4.09 Max: 20.86
Current: 2.05
FRA:PP1's Interest Coverage is ranked worse than 82.06% of 262
companies
in the Restaurants industry
Industry Median: 6.45
vs FRA:PP1: 2.05
Papa John's International (FRA:PP1) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Papa John's International Interest Coverage Related Terms
Papa John's International Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:PP1 vs CBRL, BJRI, BH: Interest Coverage Comparison
For the Restaurants subindustry, Papa John's International's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Papa John's International's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Papa John's International's Interest Coverage falls into.
Papa John's International Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Papa John's International (FRA:PP1) has a Interest Coverage of 2.49 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Papa John's International and its competitors. This is 39% below median its historical median of 4.09. Over the past decade, Papa John's International's Interest Coverage has ranged from 0.96 to 20.86. According to the industry distribution chart, Papa John's International ranks #215 out of 262 companies in the Restaurants industry, placing it in the top 82.1%.
Is Papa John's International's Interest Coverage too high?
Papa John's International's current Interest Coverage of 2.49 is 39% below median its 10-year median of 4.09. Over the past 10 years, this metric has ranged from a low of 0.96 to a high of 20.86. The Restaurants industry median Interest Coverage is 6.45. Papa John's International's value of 2.49 is 61.4% below this industry median. Based on the distribution chart, Papa John's International ranks #215 out of 262 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Papa John's International has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Papa John's International's Interest Coverage compare to CBRL and BJRI?
According to the Restaurants industry distribution chart, Papa John's International ranks #215 out of 262 companies for Interest Coverage. This places Papa John's International in the lower half of its industry. The industry median Interest Coverage is 6.45. Papa John's International's value of 2.49 is 61.4% below this benchmark. Historically, Papa John's International's own Interest Coverage has ranged from 0.96 to 20.86 over the past decade. While the company's 10-year median is 4.09 vs. the industry median of 6.45, 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 Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.45, based on 262 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Papa John's International's current Interest Coverage of 2.49 is 61.4% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Papa John's International and its competitors. For the Restaurants industry, the median Interest Coverage is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Papa John's International's current Interest Coverage is 2.49, which is 39% below median its own 10-year median of 4.09. 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 €38.49, compared to a current price of €31.60 — trading 17.9% below its estimated fair value. The current Interest Coverage is 2.49, which is 39% below median its 10-year median of 4.09 and 61.4% below the Restaurants industry median of 6.45. Papa John's International's overall GF Score™ is 67/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Papa John's International (FRA:PP1), the current Interest Coverage is 2.49 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 €31.60 is trading 17.9% below its estimated GF Value™ of €38.49.
GuruFocus considers Papa John's International to be Modestly Undervalued.
Key valuation signals for FRA:PP1:
Interest Coverage: 2.49 (39% below median its 10-year median of 4.09)
GF Value™: €38.49 vs. price of €31.60 (17.9% below fair value)
Industry Position: 61.4% below the Restaurants median (#215 of 262)
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.
67GF Score
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