Papa John’s International, Inc. (PZZA) reported fourth‑quarter 2025 revenue of $498.2 million, a 6.1% decline from the $530.8 million earned in the same period a year earlier. Net income fell to $8.63 million, down $6.33 million from $15 million in Q4 2024, while adjusted EBITDA slipped to $51.1 million, a $6.74 million drop from $57.86 million. The company’s earnings per share of $0.34 beat the consensus estimate of $0.32, a $0.02 or 6.3% beat driven by disciplined cost management amid a weaker top line.
Full‑year 2025 revenue totaled $2.06 billion, a 0.3% decline from $2.06 billion in 2024. Net income for the year was $32.12 million, down $52.08 million from $84 million a year earlier, and adjusted EBITDA was $201.1 million, a $26.16 million decrease from $227.27 million. The year‑over‑year revenue dip reflects a $24 million decline in domestic company‑owned restaurants, largely due to refranchising 85 locations, and higher marketing and promotional expenses.
The revenue shortfall was concentrated in the North American segment, where refranchising and promotional spending weighed on performance. International sales, however, grew modestly, offsetting some of the domestic weakness. The company’s adjusted EBITDA margin improved slightly in the domestic company‑owned segment, rising to 6.3% from 6.1% a year earlier, while the North America commissary segment saw a 150‑basis‑point lift to 7.7%. These margin gains suggest that operational efficiencies are beginning to offset the revenue decline.
Management highlighted the impact of the refranchising program and the need to strengthen the portfolio. "In the fourth quarter, solid execution drove the Company's fifth consecutive quarter of positive comparable sales in our International markets, while North America results reflected a weak consumer backdrop and elevated promotional environment," said CEO Todd Penegor. He added, "In 2026, we are focused on continuing our transformation work to best position Papa Johns to win in a dynamic QSR category. Our strong balance sheet is supporting investment in these initiatives, which we believe will deliver high returns. We look forward with confidence in our ability to generate sustainable, profitable growth, and value creation." CFO Ravi Thanawala noted, "We expect that this menu revision will exert approximately 150 basis points of near‑term pressure on 2026 North America comparable sales," and that "new customer acquisition was lower than last year." He also emphasized, "We are focused on elevating four‑wall economics and our consumer experience with the intent of accelerating new restaurant development and capitalizing on significant market share opportunities over the medium term." The company reiterated its 2026 guidance of flat to low‑single‑digit growth in global system‑wide restaurant sales and adjusted EBITDA of $200 million to $210 million.
Investors reacted to the revenue miss and cautious 2026 outlook, with particular focus on the decline in North America comparable sales. The market’s response underscored concerns about the weak consumer backdrop and elevated promotional environment in the core market, while acknowledging the company’s ongoing portfolio optimization and international growth as potential tailwinds.
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