Papa John's (PZZA) Reveals Huge Expansion Plans In Mexico

World’s third largest pizza delivery company, Papa John’s International, Inc. (NASDAQ:PZZA) is geared up to expand further into Mexico. The company has inked a restaurant development agreement with Orquest Foods, whereby it plans to build 60 restaurants during the course of the next eight years.

Orquest Foods is owned by the Clariond Lozano family, and has been in the food business for the past 10 years. In addition to the 60 stores, Orquest Foods has also recently purchased 26 Papa John’s locations in Mexico City area to develop the Papa John’s brand in various states across the country.

Large scale international expansion has been the backbone of Papa John’s operations recently. Currently, the company has more than 1500 international restaurants, with over 350 restaurants in 16 Latin American countries. It is also planning to expand in Brazil, Honduras, Uruguay and the Bahamas.

Before signing the deal in Mexico, the company inked restaurant development agreements in Russia, Spain, the Netherlands and also debuted in Israel, all in the first half of 2016. The plan is to open their 5000th restaurant globally by the end of 2016.

The company posted a solid second-quarter 2016 results with both top and bottom line surpassing the Zacks Consensus Estimate. It also recorded positive comps for the 23rd consecutive quarter. On the back of these results and the company’s focus on menu innovation, international expansion and technological upgrades, Papa John’s currently holds a Zacks Rank #2 (Buy).

Other Stocks to Consider

Other well-performing companies in this sector include Del Taco Restaurant, Inc. (NASDAQ:TACO) , Denny’s Corporation (NASDAQ:DENN) and Wingstop, Inc. (NASDAQ:WING) , all carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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