Papa John’s closing hundreds of underperforming stores ...Middle East

By Rachel Phua | Bloomberg

Papa John’s International shares slid after sales shrunk more than expected and the pizza chain’s outlook for the year also trailed estimates, suggesting customers are increasingly skimping on its fast-food pizza.

Its North America same-store sales — revenue generated by existing restaurants compared with the prior year — fell 5.4% in the fourth quarter. They were dragged down by both the restaurant chain’s owned and franchised locations, Papa John’s said in Thursday statement. That was more than the 4.3% decline expected by analysts.

Overall revenue also declined to $498 million, about $20 million short of what analysts were anticipating.

“North America results reflected a weak consumer backdrop and elevated promotional environment,” Papa John’s Chief Executive Officer Todd Penegor said in a statement.

The company cut about 7% of its corporate workforce, and plans to shutter about 300 underperforming stores across North America this and next year. Most of them are franchisee-owned, Chief Financial Officer Ravi Thanawala said during the earnings call. At the same time, it expects to open 40 to 50 new outlets in the region this year.

For 2026, Papa John’s expects North America comparable sales to fall 2% to 4% versus Wall Street’s projection of a 0.5% increase.

Papa John’s stock dropped as much as 7.7% in Thursday morning trading, the most since November

Rival Domino’s Pizza Inc. said earlier this week it gained market share and posted stronger same-store sales, driven in part by its stuffed crust pizza launched last March, as well as promotional offers and an expanded presence on third-party delivery platforms.

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