Papa John's Boosts Digital Offerings With Google Cloud Partnership

Papa John's International, Inc. PZZA is doubling down on its technology-driven growth strategy with an expanded multiyear partnership with Google Cloud. The move supports the pizza chain’s commitment to leveraging artificial intelligence (AI), data analytics and machine learning to enhance its ordering process, customer interactions and overall operational efficiency. By integrating Google Cloud’s advanced AI capabilities, the company aims to create a seamless, personalized and engaging experience for its customers.

As part of this initiative, Papa John's launched PJX, a dedicated innovation team focused on utilizing Google Cloud’s AI capabilities. It intends to make use of tools like Google BigQuery, Vertex AI and Gemini to anticipate customer needs with proactive order suggestions based on learned preferences.

PZZA plans to enhance its loyalty program by applying Google’s generative AI to enable real-time personalization. The company plans to dynamically adjust app and website experiences, offering unique discounts, advertisements and order incentives based on a customer’s purchase history, location and preferences. This level of hyper-personalization paves a path for a likely increase in order frequency and customer retention.

Streamlining Operations and Customer Engagement Through AI

Papa John's is harnessing AI not only to personalize the customer experience but also to revamp its marketing, support and restaurant operations. The company is rolling out AI-powered marketing campaigns that deliver tailored promotions to customers, boosting engagement and order value. At the same time, it’s enhancing customer service with a chatbot that handles routine questions and introducing voice ordering via its app for added convenience.

On the operational front, Papa John's is transitioning to a Google Cloud-based point-of-sale system that will automate dispatching, improve delivery routes and streamline in-store processes. These initiatives are designed not just to cut costs and improve service but also to build stronger customer loyalty through highly personalized experiences.

Todd Penegor, president and CEO of Papa John's, underscored that the company’s AI transformation goes beyond operational efficiency, and that it aims to foster deeper customer connections through personalized service and deliver long-term growth.

Shares of Papa John's have declined 0.1% so far this year against the industry’s 3.5% rise.

PZZA’s Zacks Rank & Key Picks

Papa John’s currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the Zacks Retail-Wholesale sector are BJ's Restaurants, Inc. BJRI, Kura Sushi USA, Inc. KRUS and Sprouts Farmers Market, Inc. SFM.

BJ's Restaurants currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company delivered a trailing four-quarter negative earnings surprise of 84.7%, on average. The stock has declined 0.2% in the past six months. The Zacks Consensus Estimate for BJ's Restaurants’ 2025 sales and earnings per share (EPS) indicates growth of 3.3% and 13.6%, respectively, from the year-ago period’s levels.

Kura Sushi currently sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of negative 70.8%, on average. The stock has declined 56.9% in the past year.

The consensus estimate for Kura Sushi’s 2025 sales and EPS indicates growth of 18.5% and 237.5%, respectively, from the year-ago period’s levels.

Sprouts Farmers currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 15.1%, on average. The stock has gained 35.6% in the past six months.

The Zacks Consensus Estimate for Sprouts Farmers’ 2025 sales and EPS indicates a rise of 11.9% and 24.3%, respectively, from the year-ago period’s level.

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This article originally published on Zacks Investment Research (zacks.com).

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