Papa John’s Reports Revenue Decline to $2.05 Billion and Significant Drop in Net Income for Fiscal Year 2025

Papa John’s International, Inc. reported a slight decline in total revenues for the fiscal year ending December 28, 2025, totaling $2.05 billion, a decrease of 0.3% from $2.06 billion in the previous year. The company’s net income also fell significantly, dropping to $30.5 million from $83.5 million in 2024, resulting in diluted earnings per share of $0.90 compared to $2.54 the prior year. The decline in revenue was primarily attributed to a 6.8% decrease in sales from company-owned restaurants, which was impacted by refranchising transactions and closures in the UK market.

In terms of operational changes, Papa John’s completed the refranchising of 85 domestic company-owned restaurants in November 2025, which contributed to a pre-tax gain of $17.1 million. The company also initiated two major transformation plans: the International Transformation Plan, which was completed in late 2025, and the Enterprise Transformation Plan, aimed at optimizing the business structure and reducing overhead costs. The latter is expected to incur restructuring charges of approximately $24 million to $31 million over the next two years.

The company’s restaurant count increased to 6,083 locations globally, with 475 company-owned and 5,608 franchised restaurants. Notably, the international segment saw a 5.0% increase in comparable sales, contrasting with a decline in domestic comparable sales of 3.3%. The company is focusing on enhancing its digital platforms and customer engagement, having launched a new omnichannel platform and mobile app in 2025, which is expected to streamline the ordering process and improve customer experience.

Looking ahead, Papa John’s plans to continue its refranchising strategy and focus on improving the profitability of its restaurant portfolio. The company anticipates a challenging consumer environment in North America but remains optimistic about growth opportunities in international markets. The management is committed to investing in technology and marketing to enhance brand perception and customer loyalty, while also managing costs effectively to navigate inflationary pressures and competitive market conditions.