Papa John’s International, Inc. (NASDAQ:PZZA) stock fell Thursday after the pizza chain posted quarterly results that fell short on sales and signaled continued pressure in its North America business.
Investors focused on softer domestic demand and heavier promotions, even as international markets extended their run of growth.
Quarterly Metrics
The company reported fourth-quarter adjusted earnings per share of 34 cents, in line with the Street view. Quarterly sales of $498.179 million (down 6% year over year) missed the Street view of $515.002 million.
Global systemwide restaurant sales were $1.23 billion, down 1% from the prior-year fourth quarter.
The company said the decline was mainly driven by a $24 million drop at domestic company-owned restaurants, including about $9 million in lower revenue tied to the refranchising of 85 locations now run by franchisees.
North America comparable sales fell 5%, with domestic company-owned restaurants down 6% and franchised restaurants down 5%.
International comparable sales rose 6% versus the prior-year quarter.
“In the fourth quarter, solid execution drove the company’s fifth consecutive quarter of positive comparable sales in our International markets, while North America results reflected a weak consumer backdrop and elevated promotional environment,” said CEO Todd Penegor.
Papa John’s said it has opened 142 new restaurants systemwide, comprised of 41 restaurant openings in North America and 101 restaurant openings in International markets.
As of December 28, 2025, there were 6,083 Papa Johns restaurants operating in 50 countries and territories.
Quarterly adjusted EBITDA was $51 million compared with $58 million in the prior year quarter. The decrease was primarily attributable to higher expenses related to “incremental investment in marketing and promotional campaigns” in the quarter.
Papa John’s exited the quarter with cash and equivalents worth $36.950 million.
Outlook
Papa John’s expects global systemwide restaurant sales in 2026 to be flat to down low single digits, with North America comparable sales projected to decline 2% to 4% and international comparable sales expected to rise 2% to 4%.
The company plans 40 to 50 gross openings in North America and 180 to 220 internationally.
Operational efficiency initiatives, including recently launched programs, are expected to generate at least $25 million in corporate cost savings outside marketing through 2027. About $13 million of those savings are projected to be realized in 2026.
PZZA Price Action: Papa John’s International shares were down 4.70% at $32.24 at the time of publication on Thursday, according to Benzinga Pro data.
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