Papa John's Q2 revenue slightly beats on growth in international business

Papa John's International

06/08/2026 12:12

Overview
U.S. pizza chain's Q2 revenue fell 8.8% but slightly beat analyst expectations
Adjusted EPS for Q2 rose yr/yr and beat analyst expectations
Company suspended dividend to fund transformation strategy investments

Outlook
Papa John's now sees 2026 global system-wide sales down 2% to 4%
Company expects 2026 North America comparable sales down 6% to 8%
Papa John's lowers 2026 adjusted EBITDA forecast to $180 mln-$190 mln

Result Drivers
NORTH AMERICA WEAKNESS - Co said lower North America sales were driven by a softer consumer environment, lower order volumes, and a highly promotional QSR marketplace
INTERNATIONAL MOMENTUM - Co said international business delivered seventh consecutive quarter of positive comparable sales and increased restaurant openings
RESTAURANT REFRANCHISING - Co attributed lower domestic company-owned restaurant revenues to refranchising 85 restaurants in Q4 2025

Company press release: ID:nBw4qkdRra

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$482.40 mln
$481.29 mln (13 Analysts)
Q2 Adjusted EPS
Beat
$0.46
$0.45 (14 Analysts)
Q2 EPS
 
$0.24
 
Q2 Net Income
 
$8.70 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy."
Wall Street's median 12-month price target for Papa John's International Inc is $37.50, about 26.1% above its August 5 closing price of $29.75
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads
Aug 5 - Canada's Pizza Pizza Royalty Q2 same store sales fall amid cautious consumer spending, increased competition
Aug 4 - UK's Domino's gets boost from pizza demand during World Cup
Aug 4 - McDonald's US sales growth slows as value push falters

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)