Papa John’s to Shutter 200 Stores, Targets $25M Savings by 2027
Papa John’s will close about 200 North American restaurants in 2026 to optimize its portfolio and execute cost programs projected to save at least $25 million through 2027, including $13 million next year. The chain opened 279 new locations in 2025, drove system-wide sales up 1% to $4.92 billion, and plans $60 million in supply chain savings by 2028 to boost margins by 160 basis points.
1. Store Closures and Cost Savings
Papa John’s confirmed plans to close roughly 200 North American restaurants in 2026 as part of a broader portfolio optimization. The company expects its cost optimization and reorganization initiatives to generate at least $25 million in cumulative savings through 2027, including $13 million next year.
2. Network Expansion and 2025 Performance
In 2025 the chain opened 279 new locations worldwide—96 in North America and 183 internationally—while system-wide restaurant sales climbed 1% to $4.92 billion. Adjusted EBITDA reached $201.1 million with net income at $32.1 million, reflecting modest top-line growth and stable operating leverage.
3. Profitability Targets and Outlook
Papa John’s forecasts supply chain savings of at least $60 million by 2028, projected to add 160 basis points to restaurant-level margins in North America. Management aims to leverage these efficiencies and portfolio adjustments to strengthen profitability and support sustainable growth beyond 2026.