Papa John’s International, Inc. reported a decline in financial performance for the second quarter of 2026, with total revenues of $482.4 million, down 8.8% from $529.2 million in the same period last year. The decrease was attributed to lower sales from company-owned restaurants and franchise royalties, which fell by 20.6% and 3.6%, respectively. For the first half of 2026, revenues totaled $961 million, a decrease of 8.3% compared to $1.05 billion in the prior year. The company’s net income for the quarter was $8.7 million, down from $9.7 million a year earlier, resulting in diluted earnings per share of $0.24, compared to $0.28 in the previous year.
The company experienced significant changes in its operational structure, including the refranchising of 85 domestic restaurants in late 2025, which impacted year-over-year comparisons. The refranchising transaction resulted in a reduction of company-owned restaurant sales by approximately $25 million for the quarter. Additionally, Papa John’s closed 101 restaurants in North America as part of its Enterprise Transformation Plan, which aims to optimize its restaurant portfolio and improve profitability. The company has approved the closure of 17 more restaurants by the end of 2026.
Operationally, Papa John’s reported a decline in customer engagement, with comparable sales for domestic company-owned restaurants down 8.9% for the quarter. The company’s total restaurant count remained stable at 5,978 locations, with 469 company-owned and 5,509 franchised restaurants. The company is focusing on enhancing its digital platforms and customer experience, having launched a new omnichannel platform and initiated a multi-year transition to a new point-of-sale system.
Looking ahead, Papa John’s is focused on improving its cost structure and enhancing franchisee health through various initiatives, including supply chain optimization expected to yield at least $60 million in savings over the next two years. The company has suspended its quarterly dividend to allocate more resources towards its transformation strategy. Management anticipates that these efforts will position the company for long-term growth, despite the current challenges in the consumer environment. The company expects to incur additional restructuring charges as it continues to evaluate its restaurant portfolio and implement its transformation initiatives.
About PAPA JOHNS INTERNATIONAL INC
Papa John’s International, Inc. operates and franchises pizza restaurants worldwide, emphasizing high-quality ingredients and a superior product. Its business segments include company-owned and franchised restaurants, supply chain centers, and international markets. The company focuses on brand differentiation through quality, marketing, and technology, serving a broad customer base with a franchise-driven model that balances operational standards, innovation, and global expansion.
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