Papa John’s Reports $2.06 Billion Revenue for Fiscal Year 2024, Operating Income Increases

Papa John’s International, Inc. reported a total revenue of $2.06 billion for the fiscal year ending December 29, 2024, a decrease of 3.6% from the previous year’s revenue of $2.14 billion. The decline in revenue was attributed to a 4.9% drop in comparable sales at domestic company-owned restaurants and a 4.1% decrease in franchise royalties and fees. The company noted that the prior year’s results were positively impacted by an additional week of operations due to a 53-week fiscal year, which contributed approximately $41 million to 2023 revenues. Excluding this impact, the revenue decline would have been approximately 1.7%.

In terms of profitability, Papa John’s reported an operating income of $156.7 million, up from $147.1 million in the previous year. The increase in operating income was primarily driven by a significant gain of $41.3 million from the sale of two Quality Control Centers (QC) in Texas and Florida. However, adjusted operating income decreased to $148.2 million from $157.0 million, reflecting the challenges faced in the domestic and international markets, including the impact of the International Transformation Plan, which incurred costs of $27.3 million.

Strategically, the company has focused on enhancing its marketing and digital strategies, with plans to invest an additional $25 million in marketing initiatives in 2025. This includes improvements to the customer relationship management platform and loyalty program, aimed at increasing customer engagement and sales conversion rates. Additionally, Papa John’s has been actively refranchising locations, having closed 43 underperforming restaurants in the UK and refranchised 60 others, as part of its efforts to optimize its international portfolio.

Operationally, Papa John’s had a total of 6,030 restaurants in operation as of December 29, 2024, with 552 company-owned and 5,478 franchised locations across 51 countries. The company experienced a net growth of 124 restaurants during the year, with 81 openings in North America and 43 internationally. The company’s employee headcount stood at approximately 11,400, with a total system-wide workforce, including franchisees, estimated at around 104,000.

Looking ahead, Papa John’s remains committed to its growth strategy, focusing on expanding its market presence and enhancing operational efficiencies. The company anticipates continued challenges from macroeconomic conditions, including inflation and labor costs, but aims to leverage its brand promise of "Better Ingredients. Better Pizza." to drive customer loyalty and sales growth. The company’s management expressed optimism about the potential for recovery in sales trends as they implement their strategic initiatives.