Papa John’s says coronavirus has caused closure of 50 franchised stores in China

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Source : MarketWatch

Papa John’s International Inc. PZZA, -10.45% said Wednesday the coronavirus that broke out in Wuhan, China late last year and has now sickened more than 80,000 people has forced it to close about 50 franchised stores in China.

In its 10-K regulatory filing with the Securities and Exchange Commission, the pizza company said the impact of the store closures is not currently material to its earnings. however, “there is significant uncertainty relating to the potential effect of coronavirus on our business,” the company said in the filing.

“Infections may become more widespread, including to other countries where we have operations, and travel restrictions may remain or worsen, all of which could lead to lower sales, widespread store closures or delays in our supply chain, which could have a negative impact on our business and operating results.”

The company posted fourth-quarter earnings early Wednesday, showing a narrower loss and better-than-expected revenue. Shares rose 2.5% in premarket trade, and are up 61% in the last 12 months, while the S&P 500 SPX, -0.22% has gained 12%.

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