Papa John’s reported that first-quarter revenue and earnings per share landed below consensus estimates, marking its first significant miss in several quarters. Management attributed the shortfall primarily to softer order volumes and margin pressure from promotional spending.

In the U.S., comparable store sales declined as consumers curtailed dining-out budgets amid elevated living costs, leading to weaker traffic and average ticket growth. The company cited ongoing consumer belt-tightening on nonessential spending as the key headwind.

Outside North America, international comparable sales posted modest year-over-year gains, driven by new market entries and localized promotions. However, this growth was insufficient to counterbalance the sharp domestic slowdown.