<\/p>\n
Papa Johns Announces Third Quarter 2026 Financial Results<\/b><\/p>\n
Updates Fiscal 2026 Outlook<\/i><\/p>\n
Introduces Unbox Better to Strengthen Brand and Franchise System<\/i><\/p>\n
Launches New Marketing Framework with Increased Local Market Franchisee Investment<\/i><\/p>\n
LOUISVILLE, Ky.–(BUSINESS WIRE<\/a>)– Highlights<\/span><\/i><\/b><\/p>\n (a)<\/sup><\/p>\n<\/td>\n \nGrowth rate excludes the impact of foreign currency.<\/p>\n<\/td>\n<\/tr>\n (b)<\/sup><\/p>\n<\/td>\n \nRepresents a Non-GAAP financial measure. See \u201cNon-GAAP Financial Measures\u201d for a reconciliation to the most comparable U.S. GAAP measures.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n CEO Commentary<\/span><\/i><\/b><\/p>\n \n\u201cPapa Johns is entering the next phase of its transformation with Unbox Better, a plan built around two priorities: strengthening our brand by giving customers more compelling reasons to choose Papa Johns and strengthening our system to consistently deliver on the expectations we create,\u201d said Todd Penegor, President and CEO.<\/p>\n \n\u201cAt its core, Unbox Better is about turning our promise of \u2018Better\u2019 into something customers experience every time they interact with our brand, from our food and value proposition to restaurant execution and service. While our third-quarter results reflect continued pressure in a competitive operating environment, we have aligned our company and franchisees behind a clear strategy for growth, supported by a new marketing framework led by increased local marketing investment by our franchisees to complement our national marketing initiatives. This will be combined with core product improvements and operational actions to enhance competitiveness across our system. Together, these efforts are designed to strengthen our competitive position, drive sustainable growth and create long-term value for customers, franchisees and shareholders.\u201d<\/p>\n Third Quarter 2026 Financial Highlights<\/span><\/i><\/b><\/p>\n \n\u00a0<\/p>\n<\/td>\n Three Months Ended<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Nine Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n In thousands, except per share amounts<\/i><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n September 27, \n\u00a0<\/p>\n<\/td>\n September 28, \n\u00a0<\/p>\n<\/td>\n Increase \n\u00a0<\/p>\n<\/td>\n September 27, \n\u00a0<\/p>\n<\/td>\n September 28, \n\u00a0<\/p>\n<\/td>\n Increase \nTotal revenues<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n454,843<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n508,154<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(53,311<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,415,849<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,555,629<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(139,780<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nNet income<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n3,281<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n4,473<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(1,192<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n18,919<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n23,487<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(4,568<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA(a)<\/sup><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n38,085<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n47,759<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(9,674<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n138,567<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n149,998<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(11,431<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nDiluted earnings per common share<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.09<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.13<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.04<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.55<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.69<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.14<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nAdjusted diluted earnings per common share(a)<\/sup><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.16<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.32<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.16<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.94<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1.09<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.15<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n___________________________________<\/p>\n<\/td>\n<\/tr>\n (a)<\/sup><\/p>\n<\/td>\n \nRepresents a Non-GAAP financial measure. See \u201cNon-GAAP Financial Measures\u201d for a reconciliation to the most comparable U.S. GAAP measures.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nResults for the three and nine months ended September 27, 2026 are not directly comparable with the prior year period as comparisons are impacted by restaurant refranchising transactions that occurred subsequent to the third quarter of 2025.<\/p>\n Third Quarter 2026 Results<\/span><\/i><\/b><\/p>\n Revenue:<\/span><\/b> The revenue commentary that follows includes a discussion of the Company\u2019s segment results. Total revenues of $454.8 million in the third quarter of 2026 decreased $53.3 million, or 10.5%, compared with the prior year period, reflecting the impact of refranchising transactions and lower performance in North America. The decrease in revenues was mostly attributable to a $37 million decline at our Domestic Company-owned restaurants primarily related to: 1) approximately $26 million of lower revenues compared with the comparable prior period related to 113 restaurants that were refranchised subsequent to the third quarter of 2025, and 2) 7.5% lower comparable sales. North America Commissary revenues decreased $15 million, primarily due to lower volumes, partially offset by higher pricing. North America Franchising revenues decreased $5 million primarily due to lower comparable sales at franchised restaurants. Revenues from All Other business units increased $5 million, primarily reflecting higher advertising funds revenue, driven by discretionary Company contributions to the Papa Johns Marketing Fund. This was partially offset by lower digital fees. International revenues remained flat.<\/p>\n System-wide sales:<\/span><\/b> Global system-wide restaurant sales were $1.15 billion, down 5.6%(b) <\/sup>compared with the prior year third quarter, primarily due to lower comparable sales in North America and a decline in global net restaurants on a trailing twelve-month basis. North America system-wide sales decreased 8.8%(b) <\/sup>to $802.3 million and International system-wide sales increased 2.8%(b) <\/sup>to $343.7 million in the third quarter of 2026, both as compared with the prior year period.<\/p>\n Net income:<\/span><\/b> Third quarter Net income was $3.3 million, a $1.2 million decrease compared with the prior year third quarter. The decrease was primarily related to lower sales partially offset by lower cost of sales and lower D&A expenses. Cost of sales declined in part due to the refranchising transactions mentioned above and lower transaction volumes at our Domestic Company-owned restaurants along with lower volumes at our North America commissaries. D&A expenses decreased compared with the prior year third quarter primarily due to lower levels of accelerated depreciation on technology assets in the current quarter.<\/p>\n Adjusted EBITDA:<\/span><\/b> Adjusted EBITDA(a) <\/sup>was $38.1 million, a $9.7 million decrease from the prior year third quarter. The decrease was primarily attributable to the aforementioned decline in sales and volumes in North America partially offset by lower cost of sales, as compared with the third quarter of 2025.<\/p>\n Earnings per share:<\/span><\/b> Diluted earnings per common share was $0.09 for the third quarter of 2026 compared with $0.13 in the third quarter of 2025. Adjusted diluted earnings per common share(a) <\/sup>was $0.16 for the third quarter of 2026 compared with $0.32 in the third quarter of 2025. These changes were due to the same factors impacting Net income and adjusted EBITDA(a) <\/sup>discussed above.<\/p>\n \nRefer to the Management\u2019s Discussion and Analysis of Financial Condition and Results of Operations section of our Quarterly Report on Form 10-Q filed with the SEC for additional information concerning our operating results for the three and nine months ended September 27, 2026.<\/p>\n (a)<\/sup><\/p>\n<\/td>\n \nRepresents a Non-GAAP financial measure. See \u201cNon-GAAP Financial Measures\u201d for a reconciliation to the most comparable U.S. GAAP measures.<\/p>\n<\/td>\n<\/tr>\n (b)<\/sup><\/p>\n<\/td>\n \nGrowth rate excludes the impact of foreign currency.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Free Cash Flow<\/span><\/i><\/b><\/p>\n \nFree cash flow, a non-GAAP financial measure which the Company defines as net cash provided by operating activities (from the Condensed Consolidated Statements of Cash Flows) less the purchases of property and equipment, excluding purchases of property and equipment related to damages from natural disasters, was $19.2 million for the nine months ended September 27, 2026, compared with $59.2 million in the comparable prior year period. The year-over-year decrease primarily reflects the timing impact of compensation payments related to the prior year, as well as payments related to the Company\u2019s Enterprise Transformation Plan, the timing of cash payments for Company\u2019s National Marketing Fund, and lower net income during 2026, partially offset by a decrease in capital expenditures primarily driven by lower Company-owned restaurant development compared with the prior year period.<\/p>\n
\nPapa John\u2019s International, Inc. (Nasdaq: PZZA)(\u201cPapa Johns\u00ae<\/sup>\u201d) (the \u201cCompany\u201d) today announced financial results for the third quarter ended September 27, 2026.<\/p>\n\n
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