New York
—
Papa Johns is the latest pizza chain to shut hundreds of locations following a troublesome quarter as clients pull again on spending.
The firm revealed throughout Thursday’s earnings name that roughly 300 underperforming eating places in North America will shut by the tip of 2027, with about 200 of them shuttering this yr.
The affected eating places are these “not meeting brand expectations or lack a clear path to sustainable financial improvement, as well as locations where we can effectively transfer sales to a nearby restaurant,” stated Ravi Thanawala, Papa Johns chief monetary officer and president of the chain’s North America operations.
A selected checklist of locations wasn’t introduced. Papa Johns had about 3,500 locations on the finish of 2025, in line with its annual report.
In addition to the closures, the corporate reduce about 7% of its roughly 700-person company workforce.
The closures observe a brutal fourth quarter for the chain, which reported a 5.4% decline in same-store gross sales in North America. CEO Todd Penegor stated in a press release the outcomes “reflected a weak consumer backdrop and elevated promotional environment.”
Penegor is making an attempt to engineer a turnaround for Papa Johns, focusing primarily on the menu. He recalibrated eating places’ ovens to make sure higher cooking and is enhancing its choices. The chain most lately rolled out a new pan pizza.
Rival Pizza Hut introduced earlier this month that it was closing about 250 locations within the first half of this yr. Parent firm Yum! Brands is present process a strategic evaluate of the embattled model.
Domino’s Pizza is the clear winner among the many fast-food pizza chains. Earlier this week, the chain reported a 3.7% improve in same-store gross sales for the fourth quarter, fueled by worth choices and a new brand campaign.