Discount Wars Hammer Papa John's US Sales

Papa John’s International, Inc. (NASDAQ:PZZA) shares fell on Thursday after weaker North America demand and a cautious consumer environment pressured quarterly results.

The pizza chain also faced continued promotional intensity in the quick-service restaurant market, overshadowing growth in its international business and expansion efforts.

Quarterly Details

The company reported first-quarter adjusted earnings per share of 32 cents, missing the analyst consensus estimate of 35 cents.

Quarterly sales of $478.609 million (down 7.7% year over year) missed the Street view of $485.685 million.

In the quarter under review, global system-wide restaurant sales were $1.20 billion, a 3% decrease compared with the prior year’s first quarter.

North America comparable sales declined 6.4% year over year, as comparable sales from domestic company-owned restaurants fell 5.2% and North America franchised restaurants decreased 6.7%.

“In North America, results were in line with our expectations as we navigate the cautious consumer environment and promotional QSR marketplace,” said CEO Todd Penegor.

International comparable sales increased 3.6% from the prior-year first quarter.

Papa John’s said it has opened 28 new restaurants system-wide, including 8 in North America and 20 in International markets.

In the quarter under review, adjusted EBITDA was $48 million compared with $50 million in the prior-year first quarter. The decrease was primarily attributable to lower sales and volumes in North America.

As of March 29, 2026, there were 6,020 Papa John’s restaurants operating in 50 countries and territories.

Papa John’s Outlook

Papa John’s reiterated its 2026 outlook, expecting global system-wide restaurant sales to remain flat to down low single digits.

The company expects North America comparable sales to decline 2% to 4%, while international comparable sales are projected to rise 2% to 4%.

Papa John’s forecasts 40 to 50 gross openings in North America and 180 to 220 international gross openings during 2026.

The company continues to expect adjusted EBITDA of $200 million to $210 million, adjusted depreciation and amortization of $70 million to $75 million, and net interest expense of $35 million to $40 million.

Papa John’s also projects a GAAP effective tax rate of 30% to 34%, capital expenditures of $70 million to $80 million, and approximately 33 million diluted shares outstanding.

PZZA Price Action: Papa John’s International shares were down 4.47% at $32.27 at the time of publication on Thursday, according to Benzinga Pro data.

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