Papa John's Q3 revenue falls 10.5%, misses estimates
PZZA•Papa John's third-quarter revenue fell 10.5% year over year to $454.84 million, below the $459.48 million estimate, while adjusted EPS of $0.16 also missed estimates. The company expects 2026 global system-wide restaurant sales to decline about 5%.
1. Quarterly results
Papa John's third-quarter revenue fell 10.5% year over year to $454.84 million, missing the $459.48 million analyst estimate. Adjusted EPS fell by half to $0.16, below the $0.17 estimate; net income was $3.28 million and EPS was $0.09.
2. Sales outlook
Papa John's expects 2026 global system-wide restaurant sales to decline about 5%, compared with its previous forecast of a 2% to 4% decline. It forecasts North America comparable sales to fall around 8%, while international comparable sales are expected to be flat to up 1%.
3. Factors behind decline
The company cited the refranchising of 113 restaurants and lower comparable sales at domestic company-owned restaurants as the main reasons for the revenue decline. Lower volumes reduced North America commissary revenues, while weaker comparable sales at North America franchised restaurants reduced franchising revenues.
