What Happened?

A number of stocks fell in the afternoon session after crude oil prices surged past $100 per barrel due to geopolitical conflict, sparking concerns over rising operational costs and a potential decline in consumer spending. 

The spike in oil prices triggered anxiety across the food service industry, which relies heavily on commercial Liquefied Petroleum Gas (LPG) for daily operations. Analysts warned that energy supply chains were vulnerable, and any disruption could lead to higher fuel costs for restaurants, squeezing already thin profit margins. At the same time, rising gasoline prices threatened to reduce consumer discretionary spending.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Modern Fast Food company Shake Shack (NYSE: SHAK) fell 4.6%. Is now the time to buy Shake Shack? Access our full analysis report here, it’s free.
• Traditional Fast Food company Papa John's (NASDAQ: PZZA) fell 7%. Is now the time to buy Papa John's? Access our full analysis report here, it’s free.
• Sit-Down Dining company Bloomin' Brands (NASDAQ: BLMN) fell 3.6%. Is now the time to buy Bloomin' Brands? Access our full analysis report here, it’s free.
• Sit-Down Dining company Brinker International (NYSE: EAT) fell 3.4%. Is now the time to buy Brinker International? Access our full analysis report here, it’s free.
• Sit-Down Dining company Kura Sushi (NASDAQ: KRUS) fell 2.7%. Is now the time to buy Kura Sushi? Access our full analysis report here, it’s free.

Zooming In On Papa John's (PZZA)

Papa John’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 10 months ago when the stock gained 15.3% on the news that the company reported decent first quarter 2025 results which included a narrow beat on same-store sales and full-year EBITDA guidance that slightly exceeded Wall Street's expectations, although EBITDA slightly missed. Sales rose just 1% from last year, with more money coming in from its food supply and ad units. This helped balance out the drop from weaker sales at company-run stores, especially in the U.K., where many shops closed or were sold. Overall, this print had some key positives.

Papa John's is down 10.1% since the beginning of the year, and at $36.22 per share, it is trading 34.5% below its 52-week high of $55.31 from October 2025. Investors who bought $1,000 worth of Papa John’s shares 5 years ago would now be looking at an investment worth $415.57.

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