<\/p>\n
Papa Johns Announces First Quarter 2026 Financial Results<\/b><\/p>\n
Reiterates Fiscal 2026 Outlook<\/i><\/p>\n
Global System-wide Restaurant Sales Decreased 3%(b) <\/sup>and Global Comparable Sales Decreased 4%<\/i><\/p>\n North America Comparable Sales Decreased 6.4% and International Comparable Sales Increased 3.6%<\/i><\/p>\n Diluted EPS of $0.21 and Adjusted Diluted EPS(a) <\/sup>of $0.32<\/i><\/p>\n LOUISVILLE, Ky.–(BUSINESS WIRE<\/a>)– Highlights<\/span><\/i><\/b><\/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 CEO Commentary<\/span><\/i><\/b><\/p>\n \n\u201cFirst quarter results reflected continued strong performance in our International markets where we delivered the sixth consecutive quarter of positive comparable sales. In North America, results were in line with our expectations as we navigate the cautious consumer environment and promotional QSR marketplace,\u201d said Todd Penegor, President and CEO.<\/p>\n \n\u201cAs we look ahead, we are focused on advancing our transformation strategy, including through an expanded range of value options and leaning aggressively into innovation. Execution in these areas will enable us to meet customers where they are and unlock more layers of growth. Exciting strategic partnerships such as our collaboration with Toy Story 5<\/i> ahead of the film\u2019s upcoming theatrical release on June 19th<\/sup>, are visible examples of the progress we are making in these areas. Additionally, we\u2019re elevating our digital ordering experience through the new Google Gemini Enterprise CX Food Ordering Agent,\u201d continued Penegor.<\/p>\n \n\u201cIn sum, we are taking a disciplined approach to managing the near-term market dynamics, while building for the future as the best pizza makers in the business,\u201d Penegor concluded.<\/p>\n First Quarter 2026 Financial Highlights<\/span><\/i><\/b><\/p>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Three 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 March 29, \n\u00a0<\/p>\n<\/td>\n March 30, \n\u00a0<\/p>\n<\/td>\n Increase \nTotal revenues<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n478,609<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n518,309<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(39,700<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nNet income<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n6,938<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n9,343<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(2,405<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA(a)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n47,763<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n49,624<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(1,861<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nDiluted earnings per common share<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.21<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.27<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.06<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nAdjusted diluted earnings per common share(a)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.32<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.36<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.04<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nResults for the three months ended March 29, 2026 are not directly comparable with the prior year period as comparisons are impacted by a restaurant refranchising transaction that occurred in the fourth quarter of 2025.<\/p>\n First 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 $478.6 million in the first quarter of 2026 decreased $39.7 million, or 7.7%, compared with the prior year period, reflecting improved performance in International markets, more than offset by lower performance in North America. The decrease in revenues was mostly attributable to a $31 million decline at our Domestic Company-owned restaurants primarily related to: 1) approximately $25 million of lower revenues compared with the comparable prior period related to 85 Domestic Company-owned restaurants that were refranchised in the fourth quarter of 2025 and 2) 5.2% lower comparable sales. North America Commissary revenues decreased $18 million, primarily due to food cost deflation, franchisee food cost subsidies, and lower volumes, partially offset by higher pricing. Revenues from All Other business units decreased $4 million, primarily reflecting lower digital fees and advertising funds revenue as a function of lower sales. These declines were partially offset by a $4 million increase in International revenues driven by improved performance.<\/p>\n System-wide sales:<\/span><\/b> Global system-wide restaurant sales were $1.20 billion, down 3%(b) <\/sup>compared with the prior year first quarter, as higher International comparable sales and flat global net restaurant growth on a trailing twelve-month basis were more than offset by lower comparable sales in North America. North America system-wide sales decreased 6%(b) <\/sup>to $868.9 million and International system-wide sales increased 6%(b) <\/sup>to $333.4 million in the first quarter of 2026, both as compared with the prior year period.<\/p>\n Net income:<\/span><\/b> First quarter Net income was $6.9 million, a $2.4 million decrease compared with the prior year first quarter. The decrease was primarily related to lower sales partially offset by lower cost of sales and lower G&A expenses. Cost of sales declined in part due to the fourth quarter 2025 refranchising transaction and lower transaction volumes at our Domestic Company-owned restaurants along with commodity deflation and lower volumes and at our North America commissaries. G&A expenses decreased compared with the prior year first quarter primarily due to the Company\u2019s biannual franchisee conference in the prior year period that did not repeat in 2026 and lower supplemental advertising, partially offset by higher restructuring charges associated with the Company\u2019s Enterprise Transformation Plan. Net income also reflects slightly lower interest expense driven by lower average interest rates during the quarter and slightly lower tax expense due to lower pre-tax income, compared with the first quarter of 2025.<\/p>\n Adjusted EBITDA:<\/span><\/b> Adjusted EBITDA(a) <\/sup>was $47.8 million, a $1.9 million decrease from the prior year first quarter. The decrease was primarily attributable to lower sales and volumes in North America, partially offset by improved performance in our International markets and the aforementioned declines in cost of sales and G&A expenses, each as compared with the first quarter of 2025.<\/p>\n
\nPapa John\u2019s International, Inc. (Nasdaq: PZZA)(\u201cPapa Johns\u00ae<\/sup>\u201d) (the \u201cCompany\u201d) today announced financial results for the first quarter ended March 29, 2026.<\/p>\n\n
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