<\/p>\n
Papa Johns Announces Second Quarter 2026 Financial Results<\/b><\/p>\n
Updates Fiscal 2026 Outlook<\/i><\/p>\n
Global System-wide Restaurant Sales Decreased 4.8%(a)<\/sup> and Global Comparable Sales Decreased 5.7%<\/i><\/p>\n North America Comparable Sales Decreased 8.3% and International Comparable Sales Increased 1.5%<\/i><\/p>\n Diluted EPS of $0.24 and Adjusted Diluted EPS(b)<\/sup> of $0.46<\/i><\/p>\n Company Shifts Capital Allocation to Accelerate Transformation Strategy; Suspends Dividend<\/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 and Dividend<\/span><\/i><\/b><\/p>\n \n\u201cSecond quarter results reflected continued momentum in our International business, where we delivered our seventh consecutive quarter of positive comparable sales, and ongoing headwinds in North America driven by the softer consumer environment, lower order volumes, and a highly promotional QSR marketplace,\u201d said Todd Penegor, President and CEO.<\/p>\n \n\u201cWhile our transformation is taking longer than anticipated, we continue to execute our strategy with discipline and focus and are seeing encouraging progress, including a growing and highly engaged Papa Rewards membership, supply chain savings, and AI-driven improvements to the customer ordering experience. By accelerating investments to strengthen our competitive position, improve restaurant economics, and attract new customers, we can build an even stronger foundation to gain market share and drive sustainable long-term growth. Accordingly, the Board has decided to suspend the Company\u2019s quarterly dividend beginning with the third quarter of 2026 so that we have greater flexibility to make these investments and maintain our strong balance sheet,\u201d continued Penegor.<\/p>\n \n\u201cAs we look ahead, we are confident that we have the right operating and capital allocation strategy in place to improve performance and create value for our shareholders, customers and franchisees,\u201d Penegor concluded.<\/i><\/b><\/p>\n Second 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 \n\u00a0<\/p>\n<\/td>\n Six 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 June 28, \n\u00a0<\/p>\n<\/td>\n June 29, \n\u00a0<\/p>\n<\/td>\n Increase (Decrease)<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n June 28, \n\u00a0<\/p>\n<\/td>\n June 29, \n\u00a0<\/p>\n<\/td>\n Increase (Decrease)<\/b><\/p>\n<\/td>\n<\/tr>\n \nTotal revenues<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n482,397<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n529,166<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(46,769<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n961,006<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,047,475<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(86,469<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nNet income<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n8,700<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n9,671<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(971<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n15,638<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n19,014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(3,376<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA(a)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n52,719<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n52,615<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n104<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n100,482<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n102,239<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(1,757<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nDiluted earnings per common share<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.24<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.28<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.04<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.46<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.56<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.10<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nAdjusted diluted earnings per common share(a)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.46<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.41<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.05<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.78<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.77<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.01<\/p>\n<\/td>\n \n\u00a0<\/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 six months ended June 28, 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 Second 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 $482.4 million in the second quarter of 2026 decreased $46.8 million, or 8.8%, compared with the prior year period, reflecting lower performance in North America, slightly offset by improved performance internationally. The decrease in revenues was mostly attributable to a $37 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) 8.9% lower comparable sales. North America Commissary revenues decreased $12 million, primarily due to lower volumes, partially offset by higher pricing. North America Franchising revenues decreased $3 million due to lower comparable sales at franchised restaurants. Revenues from All Other business units decreased $8 million, primarily reflecting lower advertising funds revenue and lower digital fees. These declines were partially offset by a $1 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 4.8%(b)<\/sup> compared with the prior year second quarter, as higher International comparable sales was more than offset by 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%(b)<\/sup> to $850.7 million and International system-wide sales increased 5%(b)<\/sup> to $347.2 million in the second quarter of 2026, both as compared with the prior year period.<\/p>\n Net income:<\/span><\/b> Second quarter Net income was $8.7 million, a $1.0 million decrease compared with the prior year second 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 lower volumes and commodity deflation at our North America commissaries. G&A expenses decreased compared with the prior year second quarter primarily due to lower supplemental advertising and lower management and other compensation costs. Net income also reflects lower interest expense driven by lower average interest rates during the quarter and higher tax expense due to a shift in income between jurisdictions and lower projected tax credits compared with the second quarter of 2025.<\/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 Adjusted EBITDA:<\/span><\/b> Adjusted EBITDA(a)<\/sup> was $52.7 million, a $0.1 million increase from the prior year second quarter. The increase was primarily attributable to the aforementioned declines in cost of sales and G&A expenses and improved performance in our International markets, mostly offset by lower sales and volumes in North America, as compared with the second quarter of 2025.<\/p>\n Earnings per share:<\/span><\/b> Diluted earnings per common share was $0.24 for the second quarter of 2026 compared with $0.28 in the second quarter of 2025. Adjusted diluted earnings per common share(a)<\/sup> was $0.46 for the second quarter of 2026 compared with $0.41 in the second 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 six months ended June 28, 2026.<\/p>\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 $9.5 million for the six months ended June 28, 2026, compared with $36.5 million in the comparable prior year period. The year-over-year change primarily reflects timing of collections and marketing spend within our advertising fund, the impact of compensation payments within the period, inclusive of the Company\u2019s Enterprise Transformation Plan, and lower Net income during 2026.<\/p>\n \n\u00a0<\/p>\n<\/td>\n Six Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n In thousands<\/i><\/p>\n<\/td>\n June 28, \n\u00a0<\/p>\n<\/td>\n June 29, \nNet cash provided by operating activities<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n35,828<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n66,843<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nPurchases of property and equipment<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(26,356<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(30,305<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nFree cash flow<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n9,472<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n36,538<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nWe view free cash flow as an important financial measure because it is one factor that management uses in determining the amount of cash available for discretionary investment. Free cash flow is not a term defined by GAAP, and as a result, our measure of free cash flow might not be comparable to similarly titled measures used by other companies. Free cash flow should not be construed as a substitute for or a better indicator of the Company\u2019s performance than the Company\u2019s GAAP measures.<\/p>\n Cash Dividend<\/span><\/i><\/b><\/p>\n \nThe Company\u2019s capital allocation priorities are guided by a framework that prioritizes investment in the business, maintaining a strong balance sheet, and returning capital to shareholders through share repurchases and dividends. Leveraging this framework and the Company\u2019s commitment to allocating capital to the highest return opportunities, the Papa John\u2019s Board of Directors voted to suspend the quarterly dividend, beginning with the third quarter 2026 dividend. This action will allow the Company to accelerate investment in its transformation strategy to grow share and deliver the greatest value for shareholders, including: franchise financial incentives tied to operational excellence and restaurant image improvements; new customer acquisition through a sharper aggregator strategy, addressable market expansion, product innovation, and core menu improvement; technology, such as the deployment of the new point-of-sale system; supply chain optimization to improve cost leverage and 4-wall EBITDA in restaurants; and investment to build on momentum in the International business.<\/p>\n \nAs the Company realizes the benefits from its transformation, the Board of Directors intends to revisit how to most effectively return capital to shareholders through share repurchases and dividends.<\/p>\n
\nPapa John\u2019s International, Inc. (Nasdaq: PZZA)(\u201cPapa Johns\u00ae<\/sup>\u201d) (the \u201cCompany\u201d) today announced financial results for the second quarter ended June 28, 2026.<\/p>\n\n
\n
\n \n \n \n \n \n \n
\n \n \n \n \n \n \n \n \n \n
\n<\/b>
2026<\/b><\/p>\n<\/td>\n\n \n
\n<\/b>
2025<\/b><\/p>\n<\/td>\n\n \n \n \n
\n<\/b>
2026<\/b><\/p>\n<\/td>\n\n \n
\n<\/b>
2025<\/b><\/p>\n<\/td>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n \n \n \n
\n \n \n \n \n \n \n
\n \n \n \n \n \n
\n<\/b>
2026<\/b><\/p>\n<\/td>\n\n \n
\n<\/b>
2025<\/b><\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n