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Monday, May 1, 2017

$PZZA – I like Papa John’s, but…

http://ift.tt/eA8V8J

Lots of growth. They say they have lots of room to keep on going. The part that kills me is that their debt levels have been increasing a lot in recent years, part of it is being used for share repurchases, that’s alright, but then a good chunk of it being used to fund dividend payments. Why do something so wasteful? Both Papa John’s and Dominos have been doing this, Dominos even more so. I can’t make sense out of this and it totally ruins it for me as an investment, that they would put the company at risk with so much debt, just to pay it as a dividend.

Anyone have anything to add about Papa John’s, Dominos, or this crazy thing they are doing with their cash flow?

submitted by /u/Voritos
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May 01, 2017 at 07:32AM

http://ift.tt/2plq3FF

from /u/Voritos

http://ift.tt/2plq3FF


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