Papa John's Q4 revenue falls 6% on refranchising impact

Papa Johns International

26/02/2026 12:09

Overview

Pizza delivery chain's Q4 revenue fell 6%, missing analyst expectations

Adjusted EPS for Q4 met analyst expectations

Company expects $25 mln in corporate cost savings through 2027

Outlook

Papa John's expects 2026 global system-wide sales to be flat to down low single-digits

Company anticipates North America comparable sales to decline 2% to 4% in 2026

Papa John's projects 2026 adjusted EBITDA between $200 mln and $210 mln

Result Drivers

REFRANCHISING IMPACT - Revenue decline attributed to refranchising of 85 Domestic Company-owned restaurants, now operated as franchised restaurants

INTERNATIONAL SALES GROWTH - International comparable sales increased 6%, contributing positively to system-wide sales

OPERATIONAL EFFICIENCY - Initiatives expected to deliver $25 mln in corporate cost savings through 2027

Company press release: ID:nBw3p1qHFa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$498.18 mln
$515.002 mln (15 Analysts)
Q4 Adjusted EPS
Meet
$0.34
$0.34 (14 Analysts)
Q4 EPS
$0.21
Q4 Net Income
$8.63 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 11 "hold" and no "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 $45.00, about 33% above its February 25 closing price of $33.83

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 24 three months ago

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.)