re: Thoughts on Papa Johns stock price

quote:

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Never try to catch falling knives.

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Truer words were never spoken when it comes to buying stocks.

As you said, even when they were doing good business they weren't making a lot of profit. Every restaurant chain is going to go through bad publicity at some point in time... witness Chipotle writhing in the coals for the last year or so after their "organic" food caused people to crap out their guts.

When you get that run of bad publicity and your profit margins aren't high to begin with then you can lose a lot of value in a very short period of time.

No one is really sure of the net income of Chik-Fil-A but considering the average store does something like 4.5 million a year (which I can easily believe since the CFAs here in Memphis are packed at all hours of the day) I'm guessing they can take the occasional hit because of their religious beliefs and still line some pockets nicely thank you.

Is Papa John's really that desirable as an investment? Honestly, I've had their pizza and Domino's... and I'd take Domino's.