Papa John’s (PZZA) Stock Plummets Nearly 5% Following Disappointing Q1 Results
Papa Johns International, Inc., PZZA Bottom-line results showed net income of $7 million, down from $9 million in the comparable period last year. Adjusted EBITDA totaled $48 million, representing a decrease from the prior years $50 million. CEO Todd Penegor attributed the soft performance to consumers grappling with persistent inflation. He noted that customers are opting for smaller pizza sizes while eliminating side items and desserts from their orders, pressuring average transaction values. Domestic Market Weakness Contrasts with International Strength Comparable sales in North America declined 6.4% during the quarter. Penegor indicated this figure aligned with the companys internal projections. Meanwhile, international operations delivered stronger performance. Markets outside North America recorded a 3.6% increase in comparable sales, representing the sixth consecutive quarter of positive international growth. Global system-wide restaurant sales totaled $1.20 billion, down 3% compared to the same period last year. The company added 28 new locations during the quarter — 8 domestically and 20 in international territories. A portion of the domestic revenue contraction stemmed from strategic refranchising efforts. Papa Johns refranchised 85 locations in the fourth quarter of 2025, which eliminated approximately $25 million from company-operated restaurant revenue in North America. Transformation Strategy Continues Papa Johns is actively executing a comprehensive restructuring initiative. The plan includes shuttering