Jim Cramer Says BofA's Note About Papa John's (PZZA) Had "Suboptimal Reasoning"

We recently published 16 Stocks Jim Cramer Mentioned In An Episode Where He Said OpenAI Could Beat All Big Tech Giants. Papa John’s International, Inc. (NASDAQ:PZZA) is one of the stocks Jim Cramer recently discussed.

Cramer commented on Papa John’s International, Inc. (NASDAQ:PZZA) after co-host Carl Quintanilla mentioned a Bank of America analyst note that has cut the share price target. In its note, BofA analyst Sara Senatore downgraded Papa John’s International, Inc. (NASDAQ:PZZA)’s shares to Neutral from Buy and cut the share price target to $50 from $62. The analyst commented that income disparity in the US was growing and the pressure on younger workers meant that full-service restaurant stocks might be better off due to their established customer base. Cramer discussed the note in the context of eating at Chili’s and how he’d spent more money at the restaurant. However, he wasn’t completely on board with BofA’s reasoning for Papa John’s International, Inc. (NASDAQ:PZZA):

“And Papa John’s is doing well but the pizza area is crowded. They’re saying that people who go out have more money than those who doing well. . .Brinker, my problem with that is, Chili’s, it’s ten dollars. It’s like, no,  when I go to Chili’s I don’t spend a lot of money. I spend a lot of money versus say like a pizza. But I thought the reasoning there was suboptimal reasoning, suboptimal reasoning, definitely.”

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Disclosure: None. This article is originally published at Insider Monkey.