Analyst: Anarchy Benefits Papa John’s

I guess this makes a lot of sense. Afraid of getting shot? Order in. Papa John’s will come to your home with fresh, delicious, artery clogging pizza, saving you the trouble of getting shot or axed to death by a deranged lunatic.

Keybanc is out with a note, suggesting that Papa John’s might be benefitting from the recent drop in casual dining, due to civil unrest.

The analyst upgraded the stock to “overweight” from “sector weight” and upped his price target to $80, which is the highest among analysts surveyed by Bloomberg.

“After speaking with several large operators and industry contacts, we believe the recent decline in casual dining restaurant segment fundamentals—traffic down 3-5 percent the past several weeks—may be the result of consumers eating more at home amid the current political/social backdrop, which we believe could last through the November election,” he writes. “We do not believe the consumer has ‘entrenched,’ but has likely shifted more in favor of convenience, benefiting pizza delivery operators like Papa John’s.”

While Americans may be bitterly divided on partisan lines, O’Cull thinks inexpensive Italian fare is something that transcends political affiliations.

Both PZZA and DPZ are at year to date highs.

The restaurant sector has been a mixed bag this year, up only 1.8% thus far.