Papa Johns posts 3% YoY sales decline, hits $1.20b in Q1 2026
Total revenue fell by 7.7% to $478.6m.
Papa Johns reported weaker overall results for the first quarter of 2026, driven mainly by declines in its North American business.
Global system-wide sales totaled $1.20b, down 3% from a year earlier. Growth in international markets and stable global store counts were not enough to offset a 6% drop in North America system-wide sales, which fell to $868.9m.
International system-wide sales rose 6% to $333.4m.
Net income for the quarter came in at $6.9m, down $2.4m year-on-year (YoY), reflecting lower sales.
Those pressures were partly offset by reduced cost of sales and lower general and administrative expenses.
Total revenue fell 7.7% to $478.6m, a drop of $39.7m.
The decline was largely tied to the U.S. company-owned restaurant segment, which saw about $31m less revenue, including an estimated $25m impact from 85 stores refranchised late in 2025 and a 5.2% drop in comparable sales.
North America commissary revenue also fell by $18m due to lower food costs, subsidy reductions, and weaker volumes, even with some pricing increases.
Other business units declined by $4m, mainly from reduced digital fees and advertising revenue.
International revenue increased by $4m.
Adjusted EBITDA fell to $47.8m, down $1.9m from a year earlier, mainly due to weaker North American sales, partially offset by international gains and lower operating costs.
Earnings per diluted share were $0.21, compared with $0.27 a year earlier. On an adjusted basis, earnings were $0.32 per share, down from $0.36.
The company opened 28 restaurants globally during the quarter: 8 in North America and 20 in international markets.
