Irenic & Papa John’s: A Peculiar Pruning

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Now, it appears a certain Irenic Capital Management, a name that sounds suspiciously like it ought to be dispensing peaceful advice rather than fiddling with stocks, has been doing some pruning in its garden of investments. They’ve taken a considerable scythe to their holdings of Papa John’s International, a purveyor of circular comestibles, if you will. An SEC filing, a document that always strikes me as a fine way to ruin a perfectly good afternoon, reveals they’ve shed some 748,592 shares. A right sizable pile, that.

What remains, after this trimming, amounts to a mere 325,108 shares, valued at around $12.51 million. Not a pittance, mind you, but a far cry from the nearly 1.1 million they once held. Seems they’ve decided Papa John’s wasn’t quite worth the fuss, or perhaps they simply found a shinier trinket to chase.

  • Sold off a heap of Papa John’s shares – nearly three-quarters of ’em!
  • Still holdin’ onto a few, worth about $12.5 million at last count.
  • This little maneuver drops Papa John’s right outta Irenic’s top five holdings. Seems it wasn’t a favorite child after all.

A Bit More to the Tale

Now, I’ve been watchin’ these fund managers for a spell, and it’s a curious thing to see what they deem worthy of their coin. As of late, Irenic’s affections seem to lie with:

  • NYSE: ITGR: $99.1 million (6.7% of their whole kit and caboodle)
  • NASDAQ: SHC: $67.0 million (9.3% – a goodly sum, that)
  • NASDAQ: TBPH: $51.7 million (3.5% – a smaller slice of the pie)
  • NASDAQ: ALKT: $48.6 million (3.3% – a modest portion, indeed)

Papa John’s: A Quick Overview

Metric Value
Revenue (TTM) $2.1 billion
Net Income (TTM) $37.7 million
Dividend Yield 5.8%
Price (as of Feb. 20th) $31.59

The Company Itself

Papa John’s International, you see, is in the business of deliverin’ pizza. A perfectly respectable profession, though I’ve always maintained a good home-baked loaf is superior. They’ve got over 5,600 restaurants scattered ‘cross 50 countries, a network built on both company-owned establishments and franchises. They also run a commissary system, supplyin’ ingredients to their franchise partners. It’s a sizable operation, no doubt about it.

  • They sell pizza, both for delivery and carryout.
  • They cater to folks who want a convenient meal.

What This Means for the Common Investor

Now, Irenic’s decision to shed a good portion of their Papa John’s shares is a signal, though whether it’s a wise one remains to be seen. They went from holdin’ a $51.7 million stake – the firm’s third largest, mind you – to somethin’ considerably smaller. It seems Papa John’s fell out of favor. Their current holdings are now valued at $12.5 million, a mere 0.8% of Irenic’s $1.5 billion of assets under management.

And here’s a curious thing: Papa John’s shares haven’t been performin’ too well lately. Over the past year, they’ve lost a good 30.7% of their value, dividends included. Meanwhile, the S&P 500 index has been chuggin’ along nicely, returnin’ 16.4%. Seems the market hasn’t been too keen on their pies.

Their North American restaurants have also been seein’ a bit of a slump, with same-store sales declinin’ 2.7% in the third quarter. We’ll be watchin’ closely when they report their fourth-quarter results on February 26th. Perhaps they’ll turn things around. Though, if I know anything about markets, it’s that fortunes can change faster than a prairie wind.

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2026-02-22 18:12